Caffe Nero has announced new growth opportunities after a six-year loan of approximately £85m was agreed with Carlyle, HSBC and Santander.
The firm also revealed a loan of £330m was agreed by the banks in order to refinance the brands debt with majority ownership of the group remaining with Gerry Ford, founder and Group CEO, alongside his family and friends. As a result of this new agreement, the EG Group is no longer a holder of any of The Caffè Nero Group’s debt.
With the new loan arrangement, the brand has reduced its debt exposure by 15% whilst securing additional facilities for “significant growth”.
The group currently operates four brands across 1020 stores in 10 countries. Pre-Covid 19, the firm had delivered notable success, registering 86 consecutive quarters of positive like-for-like sales growth. In the second half of 2021, with restrictions lifted, Caffè Nero started to return to its normal strong operating performance.
According to the brand, sales in the first-half of its financial year (June-November 2021) were up 61% with EBITDA for the same period recorded at £29.4m. Like-for-like sales at the end of November 2021 were tracking at 90% of FY19 levels.
Ford said: “This is a great platform for us to grow our business, including: opening up new stores, investing in digital channels, developing our coffee at home program and building our brand in international territories.”
“I also want to thank our previous banking partners, especially HSBC, Santander, Rabobank and Lloyds who stuck by us in these difficult times. I now look forward to taking the Caffè Nero brand to new heights as we forge ahead with our new partners.”