Various Eateries sales up 16% to £20m in H1
Unlike last year, the group did not benefit from £1.2m of VAT and Covid relief, which has had a direct impact when comparing gross profit
Various Eateries’ revenues have increased by 16% to £20.6m in the half-year ending 2 April, up from £17.7m in H1 2022, while like-for-like sales marginally increased.
Despite this, the group reported a decrease in gross profit to £0.6m, down from £1.5m in the same period last year, and a loss after tax of £4.3m compared with a loss of £2.6m in H1 2022.
The group cited “unprecedented” cost pressures in the supply chain, energy costs and a continuing pressure on wages and related costs for the decrease.
In addition, unlike last year, the group did not benefit from £1.2m of VAT and Covid relief, which has had a direct impact when comparing gross profit.
Nonetheless, the group welcomed an improved revenue performance for its central London sites, increasing like-for-like sales by 10% on the same period last year, as the number of office workers and tourists increased. In particular, the group’s first Noci site in Islington, which opened in March 2022, continues to outperform expectations.
The group’s balance sheet also remains solid, with cash at bank of £3.1m as of 2 April 2023 (£14.5m in H1 2022).
Andy Bassadone, chairman of Various Eateries, said: “A squeeze on margins of this scale is unprecedented in my 35 years of experience in the hospitality industry. Even though we were anticipating a significant downturn, the actual rise in input costs has been much higher and far more sustained than the industry anticipated.
“In addition to the discipline we are exercising in relation to new openings referred to above, we continue to focus rigorously on the cost structure and operational efficiency and will adapt the way we operate in this environment.”
He added: “With established and desirable brands, a clear growth strategy, and a management team that has a proven track record of growing businesses in good and bad times, the group is well positioned to approach the second half in a similarly measured way to the first.”
Yishay Malkov, CEO of Various Eateries, said: “I am proud of the way our teams continue to rise to the challenges of the current landscape while maintaining an unwavering focus on delivering exceptional experiences to everyone that comes through our doors. It is thanks to them that our brands have built such strong reputations and remain in such high demand.
“Looking ahead, while it’s difficult to say with any certainty when the pressures we, and others in our industry are under will subside, we will continue to monitor and respond to further changes in the landscape as necessary.”
