18th November 2021 By Bridget O'Connell | email@example.com | @foodtickernz
Hospitality group Savor says it spent the first half of its fiscal year consolidating acquisitions, trimming costs and streamlining operations and is “well-positioned to maximise trading” once Auckland’s restrictions are lifted.
The acquisitive group, which was spun out of brewer Moa earlier this year, reported a net loss after tax of $0.75m for the six months to September 2021, which included “significant” depreciation and interest costs and six weeks of Covid-affected trading. In last year’s interims it made a loss of $0.42m.
Operating earnings were solid at $2.1m, compared with $0.98m the same time last year.
After buying Amano, Ortolana and The Store venues from Hipgroup in April for $11m, group revenue increased to $17.2m from $4.9m in the prior period, with trading results exceeding initial expectations, said Savor.
Accompanied by strong performances across the bulk of its venues, such as Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza, “the six month period saw the group achieve some of the highest trading weeks in recent years”.
“The solid trading results throughout winter demonstrate the high quality venues we have and the potential that the group can achieve,” chief executive Lucien Law said.
The company acquired Oji Sushi in July 2021 and said it was in discussions with “several parties regarding the addition of further profitable assets”.
Its first half performance was supported by the stripping out of circa $1m of annualised overhead costs, in addition to the ongoing working capital and overhead benefits realised after it jettisoned the loss-making Moa Brewing operation.
A new centralised distribution system was added in June, and a review of its lease portfolio stripped out $300,000 for rental costs annually, again setting the group up with a lower cost base for when the recovery kicked in.
Savor also redeveloped its e-commerce business during the Delta lockdown – another opportunity when full trading returned.
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