Nando's reports 13.9% increase in revenue following worldwide growth
Peri-peri chicken restaurant chain Nando's has reported a 13.9% rise in revenue to £847.9m driven by organic growth in key markets such as the United Kingdom despite "the effect of Brexit on UK operated business" being a major uncertainty.
For the 52 weeks to 26 February 2017, Nando's saw a 3% increase in gross profit to £194.7m (2016: £189m) but a £32m loss before tax.
The brand has stated this is due to the disposal of Gourmet Burger Kitchen (GBK) and its 85 restaurants - the amortisation of intangible assets stood at -£26.2m.
During the period, a total of 47 new Nando's restaurants opened, taking the number to 908 including owned restaurants and 241 franchised restaurants. Opening costs were £425.3m while the group's total assets rose 16.3% to £441.9m.
All restaurants have undergone a brand-wide refurbishment to showcase a new, modern South African design.
There was also a reported goodwill impairment charge of £12.7m in the Australia and Asian region reflecting "lower than anticipated growth from recent investments and difficult trading conditions."
Goodwill decreased from £341.6m to £331.1m, which was partly due to the £12.7m impairment charge.
Nando's is continuing to expand worldwide. Its key sites include United Kingdom, Ireland, USA, India, Australia, New Zealand, Malaysia and Singapore; alongside increased sales associated with the new sites.
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