Cooks Coffee Company (CCC) H2 2024 earnings summary

Executive summary

• Total franchisee store sales in UK & Ireland rose 18% to NZ$58.2m, with UK up 21% and Ireland up 11%, both outperforming industry averages.

• Group revenue increased 20% to NZ$4.7m, with EBITDA at NZ$0.336m before impairment of receivables.

• Net profit from continuing operations was NZ$0.866m after foreign exchange translation reserve; overall net loss attributable to shareholders was NZ$6.36m due to discontinued operations.

• Store count grew to 75 in UK & Ireland, up from 64, with strong expansion plans targeting 305 stores by FY34.

• Appointment of Aiden Keegan as Group CEO and recognition for sustainability and operational excellence in both UK and Ireland.

Financial highlights

• Revenue from continuing operations: NZ$4.7m (up from NZ$3.9m year-over-year).

• EBITDA: NZ$0.336m before impairment; operating profit: NZ$0.179m.

• Net loss from continuing operations: NZ$0.356m; net loss from discontinued operations (Triple Two): NZ$6.0m.

• Basic and diluted loss per share: (10.84) NZ cents (vs. (6.24) NZ cents prior year).

• Cash and cash equivalents at year-end: NZ$1.17m (up from NZ$0.45m prior year).

• Negative equity of NZ$4.0m, primarily due to the write-off of Triple Two goodwill and intangibles.

Outlook and guidance

• FY25 has started strongly with five new UK stores and one in Ireland opened in the first 10 weeks.

• Combined UK & Ireland store sales up 23.7% in early FY25; UK up 30.1%, Ireland up 11.7%.

• Targeting 98 stores by March 2025 (80 UK, 18 Ireland), aiming for over 300 by FY34.

• Positive cash inflow of NZ$1.2m projected for FY25; continued focus on expansion and capital raising.