REG - Cooks Coffee Company - Preliminary results for year ended 31 March 2025

Cooks CoffeeAnnouncement

29/05/2025 07:00

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RNS Number : 5046K  Cooks Coffee Company Limited  29 May 2025

29 May 2025

Cooks Coffee Company Limited

 

("Cooks Coffee", the "Company" or the "Group")

 

Preliminary Results for the year ended 31 March 2025

 

"An ethical café group with great cafes owned and run by local people".

 

Cooks Coffee Company (NZX:CCC; AQUIS:COOK), the international coffee focused
café chain, is pleased to announce the Company's Preliminary Report for the
financial year ended 31 March 2025 ("FY25").

 

Highlights

 

 -            Total franchisee store sales in UK & Ireland up 33% at NZ$79.6m (FY24:
              NZ$58.2m).

 -            Group revenue, which is highly correlated to store sales, up 49% at NZ$7.0m
              (FY24: NZ$4.7m). This includes NZ$1.0m of sales through the Dairygold stores
              for the 3.5 months from mid-December 2024. Net Revenue excluding Dairygold
              store sales were NZ$6.0m which was 28% up on FY24.

 -            EBITDA of NZ$1.4m v NZ$336k for FY24.

 -            UK store sales were up 38% at NZ$55.6m (FY24: NZ$38.3m), compared to the
              industry average of 9%.

 -            Ireland store sales up 22% at NZ$24.1m (FY24: NZ$19.9m), compared to the
              industry growth of 1% in Ireland.

 -            The awarding of the contract to manage the cafes within the Dairygold garden
              centres is an important milestone for the Ireland business. As announced in
              December 2024, three cafes in Ireland are being operated by the Company which
              is a different model to the normal franchised store operations - the
              information below shows the impact on costs to provide a comparison with the
              prior year:

              Cost of Goods for franchised businesses is $78k v $123 last year. For
              Dairygold the costs were $98k with no comparable data.

              Total costs for the year of $5.5m include costs of $1.1m that relate to the
              operations of the Dairygold stores and these costs include all costs of
              running the stores including labour. The net costs excluding Dairygold are
              $4.4m compared to the last year amount of $4.6m.

 -            The new banking arrangement with Bank of New Zealand (BNZ) will normalise the
              debt funding, reduce interest costs and has enabled the repayment of high cost
              second tier debt.

 -            Esquires Coffee Houses Ireland were awarded the Irish Enterprise Award for
              2024 as the 'Best Modern Organic Coffee Shop Enterprise'.

 -            89 Group sites in the UK and Ireland as at 31 March 2025, up from 73 as at 1
              April 2024. and currently 93 stores as at 27 May in the network in UK &
              Ireland.

 

 

Aiden Keegan, CEO of Cooks Coffee Company, said: "FY25 has marked a pivotal
step forward for our business, we have not only delivered strong financial
results but also outperformed the broader industry by a significant margin.
These results reflect the strength of our franchise model, our focus on
community-driven locations like market towns and suburban hubs, and our
commitment to quality. The focus on market towns, housing developments and
suburban locations has been an important contributor along with the focus on
organic coffee products and an enhanced food offering with local sourcing
where possible, delivered by local owners of the franchised stores. In
addition, the award of the Dairygold café contract and our recognition as
Ireland's 'Best Modern Organic Coffee Shop Enterprise' are milestones that
reinforce our strategic direction.

 

"With 93 stores open as at late May, we are well on track toward our goal of
300 stores by 2034. Coupled with our new banking arrangement with BNZ, which
has reduced interest costs and strengthened our capital structure, we are
entering the new financial year with strong momentum and confidence in our
long-term growth strategy."

 

 

Operational Business Performance

 

United Kingdom

 

Esquires Coffee UK store numbers increased to 71 on 31 March 2025, from 58 as
at 31 March 2024, with 16 new Esquires stores opened and three closed.

 

Growth has continued strongly with new six stores being opened to date with
the stores located in Hertford, Clifton (Nottingham), Maidenhead, Shirley,
Leighton Buzzard & Crowthorne. Sales for the first eight weeks of the FY26
financial year are 30% ahead of the same period last year with like for like
sales up 3.3%.

 

Ireland

 

Store sales increased by 22% in FY25, totalling NZ$24.1m (FY24: NZ$19.9m). The
Dairygold stores joined the system in December and contributed 5.5% of the
total annual sales. Like for like store sales were up 4.3% versus FY24.
Sales for the first eight weeks of the FY26 financial year are 22% ahead of
the same period last year with like-for-like sales up 4.3%.

 

Outlet numbers at the end of the year were 18, a growth of 20%, with the
addition of three stores that are based in Dairygold Co-op Super stores. The
stores are in Midleton and Carrigaline near Cork and Raheen in Limerick. A new
store is due to open in Mallow, County Cork in the last week of May 2025.

 

Global

 

Cooks operating revenue in the global segment was down on the previous
financial year as the Middle East markets restructured with the closure of
three stores as the leases expired together with the end of one of the Jeddah
Airport contracts. The main airport store at Jeddah Airport continues to
perform well with sales up 12.3% and is the second highest sales store in the
network. Sales in Portugal were up 31.5% and Pakistan sales were up 11.3%.

 

Post period end, the Company signed a Master Franchise Agreement ("MFA") to
develop its business into the rapidly growing Indian market. Under the terms
of the MFA, the Franchisee will be responsible for the establishment and
operation of the business in India, with ongoing support from Cooks Coffee.
This support will include providing systems, processes, and best practices
related to the Esquires brand, enabling the Franchisee to maintain the high
standards synonymous with the brand.This is a very exciting development with
significant potential.

 

Joint Venture - Black Goo

 

Cooks and its key regional developer partner in the UK formed a joint venture
to acquire the Black Goo brand. Black Goo stores are based in Thame in
Oxfordshire & Tring in Hertfordshire. The stores offer freshly prepared
foods and handmade cakes - all served in stylish eclectic interiors.

The consumer positioning is complementary to the Esquires brand with typically
a younger cohort of consumers.

 

Balance Sheet

 

Total equity in the Company was NZ$(2.9)m reflecting primarily to prior period
non-cash write downs in the past. The comparison for last year was NZ$(4.0)m.

 

People

 

Katherine Scott joined the company as the London based CFO in July 2024 and
joined Board later in the year. Gareth Lloyd-Jones and Gordon Robinson joined
the Board as Non-Executive Directors based in London replacing Mike Hutcheson
and Paul Elliot who retired as part of the strategic decisions to relocate
much of the business to the UK where the major business activity is based.

 

Environmental, Social & Governance (ESG)

 

Cooks Coffee's mission is to deliver exceptional coffee experiences while
leading with purpose. The Boards believes that profitability and
sustainability go hand in hand, and its commitment to ESG principles is
central to everything it does - from sourcing to community engagement.

 

Building a Sustainable Brand

 

Fairness, integrity, and environmental responsibility are embedded in the
Group's culture. It prioritises sustainably sourced ingredients, ethical
partnerships and waste-conscious operations. Recognised for two
consecutive years as Organic Coffee Chain of the Year in Ireland and
recently awarded Best Ethical Coffee Enterprise in Wales, the Group is proud
to be setting high standards in its industry.

 

Sustainability in Action

 

 •    Eco-Friendly Production: All coffee is organic and grown without harmful
      chemicals, in harmony with nature.
 •    Sustainable Sourcing: Cooks partners with the world's first Carbon Neutral
      Gold Standard roastery.
 •    Eco-Friendly Disposables: the packaging is fully recyclable or compostable,
      including cutlery, cups, and takeaway materials.
 •    Food Waste Reduction: the partnership with Too Good To Go has saved over
      25,000 meals - equivalent to the carbon saved from charging 15 million
      smartphones.

 

Social Impact & Community Engagement

 

Cooks continue to strengthen its ties to local communities, creating welcoming
spaces that support inclusion and connection. As CEO Aiden Keegan
said, "Working from home has been fantastic for us. Our suburban cafés have
become the beating heart of their local communities."

 

 •    Mental Health Support: hosting regular events for the deaf community and
      partner with organisations to reduce isolation and improve wellbeing.
 •    Mum's Coffee Groups: Esquires locations offer welcoming spaces for mothers to
      connect, share and support one another.
 •    Alzheimer's Coffee Mornings: Held monthly to provide support and community for
      those affected by dementia.

 

Market Leadership with Responsibility

 

The Group is addressing climate change and social impact through:

 

 •    Designing energy-efficient and eco-conscious stores.
 •    Partnering with suppliers who share the sustainability vision.
 •    Implementing operational practices to reduce the Group's carbon footprint.

 

Vision for the Future

 

Cooks Coffee aims to lead the market with responsibly sourced coffee, fresh
food, locally produced where practical, and eco-friendly practices.

 

 Market Leadership with Responsibility

 

 The Company addresses climate change by:

 

     ·    Designing eco-friendly stores.
     ·    Partnering with like-minded suppliers.
     ·    Reducing its carbon footprint through energy-efficient practices.

 

Outlook

 

The FY26 financial year has begun strongly with six new stores opened in the
UK in the first eight weeks of the year.

 

The expansion strategy, combined with strong like-for-like sales growth,
demonstrates the Company's resilience and ability to attract and retain
customers in both established and new locations, as well as the Group's strong
market position and the effectiveness of its customer engagement strategies.

 

Growth for the Esquires brand continues to exceed reported industry growth in
both core markets and the Board would like to acknowledge the dedicated
performances of all the parties involved in the Group's activities driving the
growth plans and delivering excellent service to our customers every day.

 

In the core markets of UK & Ireland around 250,000 customers are now being
served each week by our great team led by our franchisees long with their
staff, supported by Regional Developers in the UK and the Company's great
teams in both markets.

 

With 93 stores open as at late May, the Group is well on track toward its goal
of 300 stores by 2034. Coupled with a new banking arrangement with BNZ, which
has reduced interest costs and strengthened the capital structure, the Group
is entering the new financial year with strong momentum and confidence in its
long-term growth strategy,

 

 

The FY25 financial statements are appended to this announcement and may be
accessed here:
http://www.rns-pdf.londonstockexchange.com/rns/5046K_1-2025-5-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5046K_1-2025-5-28.pdf) .

 

 

Enquiries:

 

 Cooks Coffee Company Limited                        +64 21 702 509 (New Zealand)
 Keith Jackson (Executive Chairman)                  keith.jackson@cookscoffeecompany.com

 Aiden Keegan (Chief Executive)
                                                     +44 (0) 7980 608 440 (UK)

                                                     aiden@esquirescoffee.co.uk (mailto:aiden@esquirescoffee.co.uk)

                                                     +44 (0) 20 3934 6630 (UK)
                                                     ukinvestorrelations@cookscoffeecompany.com
                                                     (mailto:ukinvestorrelations@cookscoffeecompany.com)

 IFC Advisory Limited (Financial PR & IR)            +44 (0) 20 3934 6630
 Graham Herring, Florence Staton                     cookscoffee@investor-focus.co.uk (mailto:cookscoffee@investor-focus.co.uk)

 Oberon Capital (AQSE Corporate Adviser and Broker)  +44 (0) 20 3179 5300
 Nick Lovering, Adam Pollock, Mike Seabrook

 

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