Comptoir Group reports decline in profit amid 'challenge trading environment'
Comptoir Group has reported that its profits have taken a hit from the macroeconomic pressures facing the industry, but points to hope of improved performance towards the end of the year as utilities costs decline and inflation begins to plateau.
In its interim results for the six months ending 2 July 2023, the operator of the Comptoir Libanais, Yalla-Yalla and Shawa brands, reported a decline in adjusted earnings before interest, taxes, depreciation and amortiation (EBITDA) from £3.8m last year to £1m this year.
Meanwhile, group revenue was up 2.1% to £14.8m, like-for like sales grew 6%, while total dine-in like-for-like sales were up 8.1%.
"The group is navigating a challenging trading environment, with the macroeconomic pressures of the continuing cost of living crisis, high inflation and the removal of government support with business rates and VAT resulting in a decrease in profit," said Beatrice Lafon, non-executive chair of Comptoir Group.
"Utilities costs will significantly decline from Q4 and other inflationary sensitive costs like ingredients and labour have now started to plateau. The net effect will bring improved performance towards the end of this year."
She added: "Trading continues to be impacted by significant events outside of our direct control, such as the ongoing public transport industrial action which now enters a second year. We have also had a relatively poor summer in terms of terrace weather. Both of these issues have adversely impacted our sites, despite the welcome relief that a warm start to September and the completion of our terraces' refurbishment has so far brought to footfall."
The group said "significant progress" had been made in the first six months of the year in parts of the business within its control, including new menus across all of its brands, as well as rebuilding its restaurant teams and introducing a new hospitality training programme.
Earlier this month, the restaurant group announced its plans to open its first new UK restaurant in four years this autumn, after securing a 3,325 sq ft site on Ealing High Street in west London, which is expected to relaunch as a Comptoir Libanais in October.
"We will continue our growth plans into 2024 as we are close to securing a new flagship Comptoir Libanais," added Lafon. "We also continue to grow our franchise business, first with our existing partner HMS Host and the opening of the first franchised Shawa in Abu Dhabi, but also with a new additional partner, which will see us open in Milan airport in 2024. Furthermore, a new digital experience will be offered to our guests in early 2024, our first web revamp in eight years.
"Comptoir Group remains in a strong financial position to take advantage of future opportunities and to continue to innovate. While we remain cautious about the immediate future as macro challenges continue to prevail, we are optimistic about the longer-term prospects for the business."
