Cooks Global Foods narrows annual loss as it expands Esquires coffee chain overseas

Monday 15th June 2015

Cooks Global Foods, which is taking the Esquires coffee chain outside of New Zealand and Australia, narrowed its annual loss while expanding its global footprint.

The Auckland based company posted a loss of $3.99 million, or 1.17 cents per share in the 12 months ended March 31, from a loss of $5.1 million, or 2.08 cents a year earlier, it said in a statement. The year earlier figures were restated from the previously reported loss of $2.8 million to reflect a full year's contribution from Franchise Development, which owns the intellectual property and master franchise rights to Esquires Coffee Houses, outside Australia and New Zealand, and a six month contribution for the remainder of entities within the group.

Cooks is rolling out its Esquires Coffee Houses chain in overseas markets, with 22 stores currently being designed or under construction. It operates or franchises cafes in the UK, Ireland, the Middle East, China, and is expanding to Indonesia this month. The company said today it aims to have 125 stores by the end of this financial year, from 70 at the end of last year.

"The business is focused on achieving revenue growth through boosting current sales, opening new stores and investigating new territories," chairman Keith Jackson said. "Cooks sees significant opportunities to export New Zealand's café culture into new markets and existing markets."

In the latest year, revenue doubled to $8.9 million from a restated $4.4 million the year earlier. Three quarters of the revenue came from the Esquires Coffee House unit, with the remainder coming from the supply division, which includes Scarborough Fair beverage products and Progressive Processors' kiwifruit and asparagus, which supply Esquires stores and other customers.

The company isn't paying a dividend.

Its shares last traded on the NZAX market at 12 cents and have declined 11 percent so far this year.

BusinessDesk.co.nz

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