Sharechat Logo

Cooks Foods widens 1H loss, as it buys Canadian franchise, chases ME, China sales

Monday 15th December 2014

Text too small?

Cooks Global Foods widened its first half loss after buying the Canadian franchise rights to Esquires Coffee Houses, completing its ownership of the brand outside New Zealand and Australia, and spending more to expand its global footprint.

The loss widened to $1.2 million in the six months ended Sept. 30, from a loss of $831,000 a year earlier, the Auckland based company said in a statement. Operating income was $4.3 million, from zero a year earlier, before it embarked on its franchise buying strategy in October 2013.

In June last year, Cooks agreed to pay Esquires founders Stuart and Lewis Deeks $300,000 in cash and an undisclosed number of shares for the franchisee rights for the coffee houses worldwide, excluding New Zealand, Australia and Canada. To date the company has 85 stores operating globally, including in China and Middle East which is driving growth, and expects to have in excess of 90 stores by the end of March 2015. 

The coffee chain has stores in the UK, its largest market, Ireland, China, Saudi Arabia, Bahrain, United Arab Emirates, Kuwait and Canada, and is now pushing into Indonesia and Northern Cyprus.

“With the foundations for Cooks firmly in place, the business is focused on rapidly and aggressively expanding its network through both natural and acquired growth to achieve critical mass,” said Keith Jackson, Cooks chairman. “The full acquisition of the China Master Franchise that is expected to be finalised shortly will provide a further opportunity to build a strong business in the huge China market." 

Cooks gained a back door listing to the New Zealand stock exchange small cap market NZAX in 2008 in an attempt to build a major New Zealand owned listed food business. The following year, it abandoned a plan to buy the Diamond pasta and DYC vinegar brands from Goodman Fielder, instead selling its assets to Australian company Hutchinsons for $4 million and allowing Hutchinsons to settle the proposed acquisition.

Shares of Cooks last traded at 13 cents, and have declined 28 percent over the past 12 months. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls as China's yuan depreciates
COMMENT: ANZ still doesn't get it
FMA says ANZ should have reported Hisco house sale in financial statements
ANALYSIS: Another new head for Xero's American dream
Jetstar losing money on regional NZ services, watching market 'closely'
A2 Milk says rising environmental costs not a 'big risk'
Cavalier Corp shares fall 16% as it announces write-down
Twyford's choice: NZTA or Super Fund for Auckland light rail
Auckland Airport boss upbeat about future but warns against complacency
NZ Shareholders' Association to oppose Stride's directors' fee bump

IRG See IRG research reports