Consolidated Audited Results for the Twelve Months Ended 30 November 2022
CHAIRMAN'S REPORT 2022
TO OUR SHAREHOLDERS, EMPLOYEES, CUSTOMERS AND PARTNERS
The financial year 2022 was one of significant recovery for Prestige Holdings, compared to the two previous years, when the Covid-19 pandemic had a severe negative impact on our business. There has been significant effort and progress towards returning our business operations to pre-pandemic levels, and overall our Group has emerged stronger, more adaptive and well positioned for future growth.
For the fiscal year 2022, Group revenue increased by 55% to $1.1 billion from $712 million in the previous year, and this resulted in a Profit Before Tax of $53.7 million compared to a Loss Before Tax of $31.7 million in 2021. During the period, our Group generated $165 million in Operating Cash Flow, repaid $38.3 million in debt, which reduced our total borrowings to $55.7 million and we ended the year with $95 million in cash. At year end we operated 129 restaurants with one new restaurant opening, one closure and no remodels or relocations during the period.
LOOKING FORWARD
As mentioned earlier, 2022 was a recovery year for our business after two very difficult pandemic impacted years. In 2023, we expect to build on the progress made in the last year and also restart our new store and remodeling investment programme. Already in 2023, we have opened two new Starbucks restaurants at Brentwood and Aranguez, and will open a third in O'Meara in March. In April 2023, we will open our first Starbucks restaurant in Guyana at the Amazonia mall. Additional new stores in Trinidad are also planned during the financial year.
DIVIDENDS
The Board approved a final dividend of 20 cents (2021 - 0 cents) per common share, which, with shareholders' approval, will bring the total dividends payable for the financial year 2022 to 32 cents (2021
- 0 cents), the same as in 2019. The final dividend will be paid on 15 May, 2023 to shareholders whose names appear on the Register of Members on 13 April, 2023.
ACKNOWLEDGEMENT
I wish to thank and recognize all of our dedicated and hardworking employees who have been so instrumental in navigating the group through the difficulties in recent years and the improvements experienced in 2022. The CEO, Brand VPs and management team have been proactive in managing ongoing supply chain and operational challenges, demonstrated great resilience and team work, and have provided leadership at every level in the organization. A very special thank you to all of our customers for remaining loyal to our brands, and for keeping us "in their hearts and minds for every eating experience". Lastly, I wish to thank my fellow directors for their wisdom and counsel and for the support provided to management during the year.
Christian E. Mouttet
Chairman
27 February 2023
OPERATIONS
All of our brands posted significant operational and financial improvements when compared to the two previous, Covid-19 impacted, years. The Group's overall profitability at $54 million, was comparable to 2019, the last full year in which there were no Covid-19 restrictions. Throughout 2022, we continued to build on the innovation and progress that has been made in our digital, delivery and drive-thru channels and expect that these platforms will continue to drive growth going forward.
The most significant challenge that our industry is currently experiencing is high, and in some cases increasing, food, packaging and operating costs, and the global supply chain disruptions that have caused this are expected to persist for some time. These increases have been material to our business and we are working closely with our local and foreign suppliers in order to minimize their impact to our business and our customers.
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Year to | Year to | ||||
30 November | 30 November | ||||
2022 | 2021 | ||||
(AUDITED) | (AUDITED) | ||||
$ '000 | $ '000 | ||||
Profit/(loss) for the year | 35,474 | (28,302) | |||
Other comprehensive income | |||||
/(loss) | |||||
Items that may be subsequently | |||||
reclassified to profit or loss | |||||
Currency translation differences | 42 | (261) | |||
Total comprehensive income/ | |||||
(loss) for the year | 35,516 | (28,563) | |||
Attributable To: | |||||
Owners of the parent company | 35,516 | (28,563) | |||
CONSOLIDATED INCOME STATEMENT
Year to | Year to | ||||
30 November | 30 November | ||||
2022 | 2021 | ||||
% Change | (AUDITED) | (AUDITED) | |||
55% | $ '000 | $ '000 | |||
Revenue | 1,105, 1 1 7 | 7 1 2 ,108 | |||
Cost of sales | (744,369) | (480,915) | |||
Gross profit | 360,748 | 231,193 | |||
Other operating expenses | (2 1 1 ,860) | (177,814) | |||
Administrative expenses | (78,685) | (67,154) | |||
Other income | 2,278 | 1,539 | |||
Operating profit/(loss) | 72,481 | ( 1 2 ,236) | |||
Finance costs | (18,792) | ( 1 9 ,467) | |||
Profit/(loss) before income tax | 53,689 | ( 3 1 ,703) | |||
Income tax (expense)/credit | (18,215) | 3,401 | |||
Profit/(loss) for the year | 35,474 | (28,302) | |||
Profit/(loss) attributable to: | |||||
Owners of the parent company | 35,474 | (28,302) | |||
Basic earnings/(loss) per share (exclusive of treasury shares) | |||||
57.9 cents | (46.4 cents) | ||||
Diluted earnings/(loss) per share | 56.8 cents | (45.4 cents) |
Director | Director |
Notes:
- The Consolidated Financial Statements include the activities of Prestige Holdings Limited, the Parent Company (KFC, Pizza Hut, Subway and Starbucks), Weekenders Trinidad Limited (TGI Fridays Trinidad) and Prestige Restaurants Jamaica Limited (TGI Fridays Jamaica).
- The principal accounting policies applied in the preparation of these summary financial statements are consistent with those disclosed in the audited financial statements as at and for the year ended November 30, 2022, and have been consistently applied to all periods presented, unless otherwise stated.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 November | 30 November | ||||
2022 | 2021 | ||||
(AUDITED) | (AUDITED) | ||||
$ '000 | $ '000 | ||||
ASSETS | |||||
Property, plant and equipment | 260,395 | 275,1 5 9 | |||
Right-of-use assets | 276,771 | 261,874 | |||
Intangible assets | 58,892 | 60,069 | |||
Other non current assets | 10,436 | 12,258 | |||
Current assets | 224,766 | 1 33,230 | |||
Assets classified as held for sale | -- | 5,287 | |||
Total assets | |||||
831,260 | 747,877 | ||||
EQUITY AND LIABILITIES | |||||
Share capital | 23,759 | 23,759 | |||
Other reserves | 26,417 | 26,375 | |||
Retained earnings | 246,875 | 218,73 1 | |||
297,051 | 268,865 | ||||
Treasury shares | (9,665) | (1 1 ,340) | |||
Total equity | |||||
287,386 | 257,525 | ||||
Non-current liabilities - lease liabilities | 261,760 | 247,373 | |||
Other non current liabilities | 34,233 | 56, 3 9 1 | |||
Current liabilities - lease liabilities | 31,528 | 29,045 | |||
Other current liabilities | 216,353 | 157,543 | |||
Total liabilities | |||||
543,874 | 490,352 | ||||
Total equity and liabilities | 831,260 | 747,877 | |||
CONSOLIDATED CASHFLOW STATEMENT
30 November | 30 November | |||
2022 | 2021 | |||
(AUDITED) | (AUDITED) | |||
$ '000 | $ '000 | |||
Cash flow from operating activities | ||||
Cash generated from operations | 165,238 | 50,672 | ||
Interest paid | (18,792) | (19,467) | ||
Income tax paid | (12,347) | (2,841) | ||
Net cash generated from operating activities | ||||
134,099 | 28,364 | |||
Net cash used in investing activities | (1 8 ,819) | (22,185) | ||
Net cash used in financing activities | (75,057) | (10,919) | ||
Net increase/(decrease) in cash and cash equivalents | ||||
40,223 | (4,740) | |||
Cash and cash equivalents at the beginning of the year | 54,973 | 59,713 | ||
Cash and cash equivalents at the end of the year | 95,196 | 54,973 | ||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share | Other | Retained | Total | Treasury | Total | |
Capital | Reserves | Earnings | Shares | Equity | ||
$ '000 | $ '000 | $ '000 | $ '000 | $ '000 | $ '000 | |
Balance at 1 December 2020 | 23,759 | 26,636 | 250,693 | 301,088 | (11,340) | 289,748 |
Comprehensive loss | ||||||
Loss for the year | -- | -- | (28,302) | (28,302) | -- | (28,302) |
Other comprehensive loss | ||||||
Currency translation differences | -- | (261) | -- | (261) | -- | (261) |
Total comprehensive loss for the year | ||||||
-- | (261) | (28,302) | (28,563) | -- | (28,563) | |
Transactions with owners | ||||||
Net dividends for 2020 | ||||||
-Paid 6 cents per share | -- | -- | (3,660) | (3,660) | -- | (3,660) |
Total transactions with owners | ||||||
-- | -- | (3,660) | (3,660) | -- | (3,660) | |
Balance at 30 November 2021 | 23,759 | 26,375 | 218,731 | 268,865 | (11,340) | 257,525 |
Balance at 1 December 2021 | ||||||
23,759 | 26,375 | 218,731 | 268,865 | (11,340) | 257,525 | |
Comprehensive income | ||||||
Profit for the year | -- | -- | 35,474 | 35,474 | -- | 35,474 |
Other comprehensive income | ||||||
Currency translation differences | -- | 42 | -- | 42 | -- | 42 |
Total comprehensive income for the year | ||||||
-- | 42 | 35,474 | 35,516 | -- | 35,516 | |
Transactions with owners | ||||||
Net dividends for 2022 | ||||||
-Paid 12 cents per share | -- | -- | (7,330) | (7,330) | -- | (7,330) |
Sale of treasury shares | -- | -- | -- | -- | 1,675 | 1,675 |
Total transactions with owners | -- | -- | (7,330) | (7,330) | 1,675 | (5,665) |
Balance at 30 November 2022 | 23,759 | 26,417 | 246,875 | 297,051 | (9,665) | 287,386 |
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Prestige Holdings Ltd. published this content on 01 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2023 14:09:32 UTC.