Caffè Nero sees 82% growth in weekly sales post-lockdown
The company also expects revenue from delivery and digital channels to double across the group in their upcoming financial year.
Caffè Nero said it has had a “sharp increase” in U.K. sales post-lockdown and has repaid all bank loans borrowed during the height of the COVID-19 crisis.
In a release, the premium coffee chain said weekly sales surged 82 per cent as outdoor seating restricted indoor eating was permitted in the past 13 weeks to 31 May.
The company also reported that it has repaid a £12.2 million Liquidity Facility loan it was extended a year ago by its banking syndicate. For the upcoming 12 months, the company said it is forecast to meet all of its banking covenants.
Current trading, Caffe Nero says, is at 70-80% of 2019 levels.
The chain’s delivery and digital channels have also provided an additional revenue source over the past year, with sales over the past 12 months around £16 million.
The company expects revenue from these new channels to double across the group in the upcoming financial year.
Last year's UK sales was reduced from £292.6 million to £239.7 million, a reduction of 22% whilst EBITDA was at £17.6 million in the year.
“Sales are picking up and the last quarter has given us a lot of positive momentum. COVID-19, with its government enforced closures and restrictions, made for a challenging 14 months. But we are gaining strength each week. Prior to the pandemic we were trading strongly and had a fantastic track record. We are starting to see that same trading pattern return,” Caffè Nero founder and group CEO Gerry Ford said in a statement.
“Caffè Nero has been cashflow positive for six months despite restrictions and I anticipate the next six months we will move ahead sharply again.”
