Rosinter ups 2010 sales revenues 17%
MOSCOW. Jan 25 (Interfax) - OJSC Rosinter Restaurants Holding , which operates the Il Patio, Planet Sushi, 1-2-3 Cafe, and T.G.I. Friday's chains, increased sales 16.9% to 9.175 billion rubles last year, the company reported.
The growth was a product of revitalized sales revenues at comparable restaurants and chain-expansion, the statement says.
"Gross revenue at comparable stores (LFL) grew in 2010 by 6.9%, driven by 6.5% traffic increase and 0.4% average check growth," Rosinter reported. "The restaurant network expanded to 362 outlets in 2010 from 350 outlets in 2009 with growing component of franchise operations."
"We are very satisfied with our operational performance in 2010 which is consistent with our promise of delivering a profitable growth. We posted a 16.9% y-o-y growth of consolidated operating revenue and increased our network by 12 restaurants while optimizing company's organizational and legal structures. Strong revenue dynamics, more efficient operations, and improved balance sheet following our successful SPO allowed us to speed development and continue consolidating the solid platform required to support our expansion," Rosinter's President and CEO Sergei Beshev said.
"We have been running a very strict new sites section process which targets only prime locations with high expected profitability, while optimizing simultaneously our corporate portfolio by exiting timely non-core and low-performing locations. Our new corporate development process, which we accelerated in second half of 2010 after completing SPO, delivered by end 2010 good results with 16 new restaurants opening and 12 outlets still in construction by end 2010. While the restaurant portfolio optimization process has a negative impact in count, it has a positive impact in shareholders' value given its positive effects on company's consolidated results. Our development keeps an important component of franchised stores which increased to 113 restaurants from 95 at the beginning of 2010," Beshev said.
"In 2011, we are focusing on corporate and franchise development, further enhancement of our operational performance and on the revitalization of our two proprietary core brands IL Patio and Planet Sushi to ensure strong long-term competitive position and profitability," he said.
Rosinter posted December sales revenues of 842 million rubles, a 10.8% year-on-year increase. Gross sales among comparable restaurants increased 5.8% in December, supported by a 5.2% increase in transactions.
Sales at Rosinter restaurants remained strong into the new year. "Our financial service tells us that sales over the New Year's holidays were on par with the start of December 2010, that is, they virtually did not decrease over the entire holiday period," the Rosinter press service told Interfax. "This pleasantly surprised us, as in the first week of January the usual restaurant guests gradually return to their normal selves and opt to stay at home, spending time with family and watching their favorite movies, while others travel abroad."
Restaurants typically see their sales rise mainly from the middle of December on, and when people go on vacation after New Year's, that growth settles down, Vice President of the Russian Restaurant and Hotel Federation Alexander Ivanov has noted.
In addition to its established chains, Rosinter Restaurants Holding is also developing the Costa Coffee chain of coffee houses. The company's net profits to International Financial Reporting Standards (IFRS) came to 221.9 million rubles in Jan-Nov 2010, up from 218.6 million rubles in the same period of 2009.