Nando’s Group Holdings has reported revenue up 13.9% to £847.9m, driven by organic growth in key markets – but a pre-tax loss of £13m, due to increase in capex.
Gross profit rose to £195.8m in the full year up to 17 February 2017, from £189m in 2016, driven by organic growth in key markets, which include the UK and Ireland, as well as increased sales associated with new restaurants and franchise acquisitions.
There was a significant increase in capital expenditure to £151.4m, up from £107.3m in 2016, as the group invested in new restaurants, infrastructure and expanded its international footprint
Operating profit for the period was £46.7m - down from £65.9m in 2016 - reflecting high administration costs as the group grows its global business.
Nando’s opened Cobham opened week ago, which is the second to do breakfast after Gatwick.
A goodwill impairment charge of £12.7m was recognised in the Australia and Asia region reflecting lower than anticipated growth from recent investment and difficult trading conditions.
The results include revenue and costs from small developing overseas markets with restaurant expansion programmes in place.
Nando’s said the overseas business was not fully matured, with restaurant numbers still to reach critical mass.
The group said it expected significant growth potential in these markets and will continue to invest in them.
As a result of increased capital expenditure, financing costs increased to £68.4m from £47.7 in 2016.
The new visual identity reflecting the brand’s South American identity was rolled out across global markets.