Jamie Oliver Group posts losses of £20m as media success fails to offset restaurants' struggles
Jamie Oliver's businesses posted losses of almost £20m in 2017, as a successful year for his media and licensing companies failed to offset an almost 80% fall in EBITDA for his Italian restaurants.
The company, which includes Oliver's food offerings, media work and licensing deals, struggled during a tough year for casual dining which saw the Jamie's Italian brand come to the brink of collapse. Now the results for the year ending 31 December 2017 paint a clear picture of the financial straits of the company as it attempts to reshape its offering to weather the storm.
In an official release the company detailed a 10.8% loss in revenues from the restaurant arm of Oliver's empire to £100.6m. Total earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 78.4% to £2.1m before exceptional items, down from £9.7m in 2016.
Total revenue across the group's companies fell by 7% to £142.3m, and overall EBITDA dropped 25.5% before exceptional items to £16.8m.
In total the combined losses of the group stood at £19.9m. Oliver has been forced to put in at least £10m from his own pocket to prop up the Jamie's Italian business in recent years.
However it was not all doom and gloom for the TV chef's business, which fell back on his media work to prop up the results. Represented by Jamie Oliver Holdings, his TV and book work - including the 2017 best selling book 5 Ingredients: Quick and Easy Food, pulled in revenues of £32m, up from £30m the previous year, and EBITDA of £8.1m, a rise of £45.1%.
Paul Hunt, chief executive of Jamie Oliver Group, said: "The last 18 months have clearly demonstrated the importance of having a diversified portfolio. The success of our media business, driven by the stellar performance of 5 Ingredients was fundamental to our ability to support the restaurant business and ensure its continuity.
"With a reshaped restaurant estate, a new management team, and a focused investment plan backed by HSBC, we are making steady headway in a challenging market.
"Every commercial partnership needs to deliver on two counts. It needs to be commercially successful but it must also help us deliver on Jamie's long term goal to reduce childhood obesity. The work we've done in 2017 helps us, as a business, to move towards that ambition. I would like to thank all our staff and partners for their continued support."
Pick up The Caterer's 28 September - 4 October issue to read the full interview with Jamie Oliver.
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