2017 Preliminary Report
COOKS TRANSFORMATION GAINS TRACTION
GROWTH IN COFFEE HOUSE SALES LEADS TO NARROWING TRADING LOSSES FOR CONTINUING1 BUSINESSES
Cooks Global Foods (NZX:CGF) today reports narrowing operating losses in its core Esquires Coffee operations as it benefits from strong growth in sales across its global coffee store network. The company also reports it remains on track to transition to cashflow breakeven in its continuing businesses in the current financial year.
Group net losses from continuing operations for the year to 31 March 2017 narrowed by 20.8% to $3.5 million from $4.5 million a year earlier, with both Ireland and the Middle East3 making a positive contribution and the UK segment significantly reducing its losses.
The improved earnings reflect a 13.1% rise in constant currency sales across the Esquires Coffee store network to $39.4 million in the 2017 financial year. These gains however were offset by a strong rise in the New Zealand dollar against sterling in particular, and to a lesser extent, the euro. Meanwhile, the prior financial year also benefited from master franchise fees in Egypt and Jordan.