Various Eateries FY losses widen amid margin pressures

Various Eateries has seen its pre-tax loss widen to £7.2m, up from a loss of £3.7m in FY21, as profitability was impacted by higher costs and margin pressures.

The group said it had resisted passing price increases onto customers in full “until there was more certainty around the trajectory of inflation”. Post-period end however, it has “taken action” to enhance margins.

Elsewhere, its revenues soared by 82% to £40.7m in FY22, up from £22.3m the prior year, despite the “widespread challenges” facing the sector. In addition, adjusted EBITDA rocketed 193% to £3.5m, with sales slightly ahead of market expectations.

Over the period, the group opened four new venues: Coppa Club Putney, Coppa Club Haslemere, Coppa Club Bath and Noci Islington. It plans to open a further four in 2023, with the planned openings of Coppa Club Cardiff, Coppa Club Guildford, Coppa Club Farnham and Noci Battersea Power Station.

The group said it has taken steps to manage margin pressures over the period, including a comprehensive menu re-engineering exercise. This exercise comprised both food and beverage, enhancing margins with only “modest” price increases and “without sacrificing quality”.

However, looking ahead, it warned of an uncertain outlook for inflationary pressures and the ongoing threat of train strikes 

Andy Bassadone, executive chairman of Various Eateries, said: “To have made the progress we have despite the widespread challenges we and many others in the sector have faced is testament to the hard work of our teams and the enduring appeal of our brands, even in times of economic uncertainty.

“There continues to be a complex picture of industry-wide pressures that make it difficult to predict exactly how the coming months will unfold. Nonetheless, we remain focused on executing our strategy, and are confident that we will emerge strongly once conditions improve.”