Amano Restaurant in Auckland's Britomart neighbourhood.
Amano Restaurant in Auckland's Britomart neighbourhood.
Savor, the operator of some of Auckland’s most glamorous restaurants, has lifted revenue despite bad weather and inflation taking a bite out of business.
It made a loss after tax in the half-year to September 30 of $100,000 compared to a loss of $1.7 million in the prior year.
ButSavor said that was after adjusting for one-off restructuring and interest costs. It said without those factors, the net loss after tax was $400,000.
The Amano and MoVida owner today said group revenue for the latest six-month period was $29.1m, up 40 per cent on the same time last year.
Savor said Ebitda (earnings before interest, taxes, depreciation and amortisation) was up a significant 132 per cent to $3.1m.
“Labour and cost of goods sold are the group’s most significant costs,” Savor said in an NZX announcement today.
Bivacco restaurant in Auckland's Viaduct. Photo / Babiche Martens
It said labour costs relative to sales were down due to more efficient rosters and some “headcount reductions” during the winter months.
The company also has restaurants and bars, including Azabu in Mission Bay and Ponsonby, Ebisu and Ortolana in Britomart, Parnell’s Non Solo Pizza and Bivacco on the Viaduct.
Savor indicated it had been trying to navigate some difficult inflation and living cost pressures.
MoVida, at the Seafarers Building in Britomart. Photo / Babiche Martens
“Savor continues to streamline its supplier base, seeking efficiencies through process as well as volume-driven pricing and own-brand products,” the company said in its half-year results announcement.
It said despite the pleasing group revenue result, volatile weather, macroeconomic headwinds and cost of living pressures had an impact.
Group chief executive Lucien Law said Savor was happy with $3.1m in Ebitda and achieving more than $2.5m in operating cashflows for the six months, despite some tough market conditions.
Ebisu, another restaurant in Britomart, which has had significant neighbourhood transformation in recent years. Photo / Rebecca Zephyr Thomas
Savor in January announced a $3.25m capital raise. At the time, the raise would reportedly be offered to wholesale investors at a 10 per cent discount to its then-trading price of 42.9 cents per share.
Back then, the company reportedly planned to use proceeds to pay off short-term floating rate liabilities, strengthen the company’s balance sheet and fund future growth.
Today, Savor announced it had repaid more than $1.3m in debt principal over the six months.
Members of Unite union and supporters protested outside the President Hotel in Auckland earlier this year, saying management had pressured staff to opt out of fair pay agreements. The hotel denied the claims. The broader hospitality sector had been expected to adopt the agreements, but under the new National-led regime, that is likely to change. Photo / John Weekes
The company this morning was trading at 27 cents and had an NZX market capitalisation of $20.95m.
Savor’s financial result comes amid ongoing shake-ups in the hospitality sector.
The Restaurant Association last week said it welcomed a decision to incorporate hospitality into the expanded tourism portfolio. Matt Doocey is the new Minister for Tourism and Hospitality.
The sector has also been told it can forget about Fair Pay Agreements, which would have had to specify minimum wage rates, including overtime and penal rates.
Scrapping the FPA system was expected to be a setback for unions, but business groups have largely pushed for the about-face.
