Rosinter posts net loss of 276.6 mln rubles in 9M, against profit a year ago
MOSCOW. Dec 9 (Interfax) - OJSC Rosinter Restaurants Holding posted a net loss of 276.6 million rubles for January-September 2011, against a net profit of 213.6 million rubles a year ago, the company said in a press release.
However, the company's results were above analysts' consensus forecast - a net loss of 293 million rubles.
Rosinter's net loss for the nine months includes impairments, the press release said.
Earnings before taxes, depreciation and amortization (EBITDA) totaled 137.9 million rubles, compared to 764.5 million rubles in the same period of 2010. The EBITDA margin fell to 1.8% from 10.7%. EBITDA before impairment provisions totaled 342.7 million rubles, against 762 million rubles a year ago.
The company had an operating loss of 174.7 million rubles in January-September 2011. A year previously, it had an operating profit of 463.8 million rubles.
Gross profit fell to 1.473 billion rubles, compared to 1.687 billion rubles in the same period of last year. Gross margin fell to 19.3% from 23.7%.
Rosinter's revenue grew by 7.2% to 7.635 billion rubles in the nine months.
"The first nine months of 2011 were challenging for Rosinter as we experienced a decline in financial performance, but at the same time operating trends were steadily improving and in the third quarter we have already delivered significant positive EBITDA margin improvements to 7.6%, as compared to negative EBITDA figures in the first half of the year," Rosinter's acting President and CEO Hugh Carroll is quoted as saying in the press release.
In Q3 2011, Rosinter posted a net profit of 44.9 million rubles, against losses in the first and second quarters (analysts had forecast a net profit of 28.7 million rubles). However, in comparison with Q3 2010, the company's net profit was down by 56.5%.
Revenue totaled 2.566 billion rubles in Q3, EBITDA stood at 195 million rubles (EBITDA margin - 7.6%), and gross profit - 564.9 million rubles.
"At the same time, operating performance improved in Q3 2011 and gross profit margin for the period equaled 22%, as compared to 18.6% in Q2 2011 and 17.2% in Q1 2011. This quarterly margin improvement was driven by relative reduction of core cost items, including food and beverage cost and payroll expenses as percentage of sales," the press release said.
Selling, general and administrative expenses (SG&A) grew to 1.208 billion rubles in January-September 2011, compared to 1.112 billion rubles a year ago. SG&A grew to 15.8% of sales revenue, against 15.6% in the same period of last year. However, in Q3 alone, SG&A reduced to 15.5% of sales revenue, compared to 16% in H1 2011, due to a reduction of payroll and related taxes expenses resulting from the effect of revenue growth and step-down rates of social taxes, the press release said.
Start-up expenses for new restaurants grew to 88.3 million rubles in January-September 2011, compared to 32.6 million rubles a year earlier, which was due to greater number and different time-schedule of new corporate openings, the press release said.
Rosinter's investments for the nine months totaled 455.7 million rubles, versus 205.1 million rubles in the same period of last year. During the nine months, the company opened 12 new corporate outlets, versus eight outlets opened in the same period of last year.
"Our development program assumes a very selective approach to corporate sites in order to ensure high quality of new restaurants and appropriate return on invested capital. At the same time, we optimized our portfolio by closing a number of non-profitable outlets," Carroll is quoted as saying in the press release.
Rosinter opened 30 restaurants (12 corporate and 18 franchises) in January-September 2011. Including its plans to close non-profitable outlets, the company now manages 371 restaurants.
The company's net debt stood at 1.331 billion rubles as of September 30, up 16.2%. The net debt-EBITDA ratio for previous 12 months was 3.2, versus 1.1 at the end of last year.
Rosinter manages its proprietary brands IL Patio, Planet Sushi and 1-2-3 Cafe and its licensed brands T.G.I. Friday's and Sibirskaya Corona. Also through a joint venture with Whitbread Plc the company is currently developing the Costa Coffee chain in Russia.
Rosinter's net profit to International Financial Reporting Standards (IFRS) in H1 2011 was 321.5 million rubles, and its revenue totaled 5.07 billion rubles.