Restaurant Group posts loss but upgrades annual earnings guidance

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Wagamama-owner Restaurant Group posted a first-half loss as the pandemic continued to weight on sales, though it upgraded its annual guidance citing a recovery in demand since reopening.

Pre-tax losses for the 27 weeks to 4 July amounted to £58.8 million, narrowing from year-on-year losses of £234.7 million that included hefty asset writedowns.

Revenue fell 4.6% to £216.8 million, though the company notched positive adjusted earnings before interest, tax, depreciation and amortisation of £23.6 million.

Restaurant Group said its trading performance since re-opening supported an increase in its full-year EBITDA expectations, without giving specific numbers.

In the 15 weeks from 17 May to 29 August, like-for-like sales at the Wagamama, pubs and leisure divisions had risen 21%, 12% and 18%, respectively, compared to the same period of 2019.

Restaurant Group noted, however, that it faced ongoing sector-wide challenges, including labour availability and increased inflationary cost pressures.

'Whilst there are some well documented sector challenges to navigate in the short-term, particularly around labour availability and supply chain, we believe the group is well positioned for the long- term,' chief executive Andy Hornby said.