The Restaurant Group plc has announced its Interim Results for the 26 weeks ended 3 July 2022, reporting sales of £423.4m (2021: £216.8m) and adjusted EBITDA of £41.7m (2021: £11.2m).
1. Financial highlights: group portfolio outperforming in a challenging market
• Total sales of £423.4m (2021: £216.8m) and adjusted EBITDA of £41.7m on a pre IFRS 16 basis (2021: £11.2m)
• Robust cash generation in H1; net debt reduced to £158.4m on a pre IFRS 16 basis (2021: £171.6m)
• Wagamama, Pubs and Concessions delivered continued like-for-like sales outperformance versus the Coffer Peach tracker
• Further improvements in the customer offer with continuous menu innovation and unique colleague culture leading to customer ratings which remain very positive
2. Strategic highlights: Navigating sector cost challenges and targeting long-term growth with discipline
• Ongoing significant cost pressures partially mitigated by decisive management actions, with 100% of utilities now hedged for FY22, FY23 & FY24 to provide future certainty on the cost base
• Disciplined approach to targeted expansion opportunities, organic and inorganic, to drive longer-term value creation:
o Strong pipeline of new UK Wagamama restaurants with improved commercial lease terms
o Recently acquired Barburrito continuing to trade ahead of the market (outperformance of 13% for the 33 weeks to 21 August 2022)
CEO Andy Hornby commented, “We have made good progress in the past six months, delivering a robust financial performance in a challenging market, with continued LFL sales outperformance. I’d like to thank each and every member of our teams for their phenomenal efforts in delivering these results.
'We have taken decisive management actions to reduce the impact of the industry cost pressures including fully hedging our utilities until December 2024 and reducing our interest rate exposure through interest rate caps.
'Whilst the uncertain consumer environment presents challenges for the hospitality sector, the Group is well positioned to further develop our brands to deliver long-term growth for all stakeholders underpinned by our strong balance sheet.”