NoHo Partners Plc’s Financial Statements Release 1 January–31 December 2023: Profitable growth continued in all markets – comparable EBIT margin for the full year was 10.1 %

NoHo Partners Plc, Stock Exchange Release, 15 February 2024 at 8:00 EET

NoHo Partners Plc’s Financial Statements Release 1 January–31 December 2023: Profitable growth continued in all markets – comparable EBIT margin for the full year was 10.1 %

This release is a summary of NoHo Partner’s Financial Statements Release for January-December 2023. The complete report is attached to this release and is also available at www.noho.fi/en.

OCTOBER–DECEMBER IN BRIEF

• Turnover was MEUR 107.1 (88.1) and increased by 21.6%.
• Operational EBITDA was MEUR 13.5 (11.5) and increased by 17.4%.
• EBIT was MEUR 10.6 (8.5) and increased by 24.7%.
• EBIT margin was 9.9% (9.6%).
• The result for the period was MEUR 4.0 (0.7) and increased by 455.6%. The result adjusted by entries related to Eezy Plc shares was MEUR 6.7 (3.6).
• Earnings per share were EUR 0.15 (-0.01) and increased by 1609.1%. Earnings per share adjusted by entries related to Eezy Plc shares were EUR 0.28 (0.13) and increased by 114.0%.

JANUARY–DECEMBER IN BRIEF

• Turnover was MEUR 372.4 (312.8) and increased by 19.0%.
• Operational EBITDA was MEUR 44.7 (41.6) and increased by 7.6%. Comparable operational EBITDA adjusted by BBS transaction costs was MEUR 46.3*.
• EBIT was MEUR 35.9 (31.6) and increased by 13.6%. Comparable EBIT adjusted by BBS transaction costs was MEUR 37.5*.
• EBIT margin was 9.7% (10.1%). Comparable EBIT margin adjusted by BBS transaction costs was 10.1%*.
• The result for the period was MEUR 10.4 (4.9) and increased by 112.2%. The result adjusted by entries related to Eezy Plc shares and BBS transaction costs was MEUR 19.3 (14.8)*.
• Earnings per share were EUR 0.38 (0.07) and increased by 439.9%. Earnings per share adjusted by entries related to Eezy Plc shares and BBS transaction costs were EUR 0.77 (0.56) and increased by 36.5%*.

Unless otherwise stated, figures in parentheses refer to the corresponding period last year.

* BBS transaction costs refer to Better Burger Society transaction related MEUR 2.5 expert service costs, financial costs and transfer taxes. MEUR 1.5 transaction costs were recognised as other operating expenses in income statement in the third quarter of the year and MEUR 1.0 financing related costs were periodised to the maturity of the loans. Later in the report, BBS refers to Better Burger Society subgroup.

KEY FIGURES

MEUR	Q4 2023	Q4 2022	Change, %	Q1–Q4 2023	Q1–Q4 2022	Change, %
Turnover	107.1	88.1	21.6	372.4	312.8	19.0
Operational EBITDA	13.5	11.5	17.4	44.7	41.6	7.6
EBIT	10.6	8.5	24.7	35.9	31.6	13.6
EBIT, %	9.9	9.6		9.7*	10.1
Result of the financial period	4.0	0.7	455.6	10.4	4.9	112.2
Earnings per share for the review period attributable to the owners of the company, EUR	0.15	-0.01	1,609.1	0.38	0.07	439.9
Earnings per share adjusted by entries related to Eezy Plc shares, EUR	0.28	0.13	114.0	0.73	0.56	30.4
Interest-bearing net liabilities excluding IFRS 16 impact				134.6	121.0	11.2
Gearing ratio excluding IFRS 16 impact, %				116.2	135.1
Ratio of net debt to operational EBITDA excluding IFRS 16 impact				3.0	2.9
Adjusted equity ratio, %				29.7	29.1
Material margin, %	75.2	76.5		75.2	75.3
Personnel expenses, %	32.8	32.9		32.5	33.2

*Comparable EBIT margin 10.1%

FUTURE OUTLOOK

Profit guidance as of 15 February 2024

NoHo Partners estimates that, during the financial year 2024, it will achieve total turnover of approx. MEUR 430 and EBIT margin of approx. 9,5%.

The company will update its long-term strategic and financial targets for the next strategy cycle 2024–2026 and publish them in the Capital Markets Day that will be held on 22 May 2024.

CEO REVIEW

NoHo Partners had a successful year in 2023 on multiple fronts. The company continued its profitable growth in Finland, and profitability also increased significantly in international operations. The company’s profitability was at the targeted level of 10% for the second consecutive year.

NoHo Partners’ excellent profitability development is driven by the sustainable structural changes the company has made over the past two years with regard to its restaurant portfolio and fixed costs. A continuous focus on the development of operational excellence in Finland and foreign markets strengthens the company’s competitive advantage, even in an erratic demand environment.

In 2023, NoHo Partners focused on the core components of its strategy in all areas. In Norway, the company returned to acquisition-driven growth by acquiring five profitable units that have already proved their effectiveness. The company also completed the final stage of its large and profitable urban projects when the restaurant operations of Helsinki Expo and Convention Centre were transferred to NoHo Partners in July. Friends & Brgrs became part of the Better Burger Society company, which was established under the Group. Through Better Burger Society, NoHo Partners also successfully expanded to a new market, Switzerland, during the review period. The business operations of the Holy Cow! burger chain acquired in the Swiss market have developed even better than expected, and the integration has progressed excellently. After the review period, NoHo Partners divested its shareholdings in Eezy Plc. The changes to ownership structures prepare the company for the next strategy period and continued profitable growth.

Good profit performance and a strong financial position enable investments in growth and the payment of dividends to shareholders. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.43 per share be paid for the financial year 2023. The company’s objective is to continue to pay increasing dividends in the future.

The weak outlook of the Finnish economy creates uncertainty with regard to the outlook of the restaurant market in 2024. The positive development of the restaurant market continues, but we expect that the pressures on consumer purchasing power will be reflected particularly in the spending of students and families in the first half of the year. At the same time, the most significant inflationary pressures on ingredients have eased, and labour availability is at a good level. Our guidance for 2024 is a turnover of approximately MEUR 430 and an EBIT margin of approximately 9.5%. The company will publish its strategic targets for 2026 at the Capital Markets Day to be held in Helsinki on 22 May.

TURNOVER AND INCOME

In October–December 2023, the Group’s turnover increased by 21.6% to MEUR 107.1 (88.1). Operational EBITDA was MEUR 13.5 (11.5) and increased by 17.4%. EBIT was MEUR 10.6 (8.5) with an EBIT margin of 9.9% (9.6%). The result for October–December was MEUR 4.0 (0.7). The result adjusted by entries related to Eezy Plc shares was MEUR 6.7 (3.6) and increased by 85.9%.

In January–December 2023, the Group’s turnover increased by 19.0% to MEUR 372.4 (312.8). Operational EBITDA increased by 7.6% compared to the corresponding period in the previous year and was MEUR 44.7 (41.6). EBIT was MEUR 35.9 (31.6) with an EBIT margin of 9.7% (10.1%). The result for the period was MEUR 10.4 (4.9). BBS transaction cost adjusted operational EBITDA was MEUR 46.3, EBIT MEUR 37.5 and EBIT margin 10.1%. The result adjusted by entries related to Eezy Plc shares and BBS transaction costs was MEUR 19.3 (14.8) and increased by 30.2 %.

The company was able to balance the effects of inflation on its business through centralised purchasing agreements and price increases, and the general rise in prices did not significantly affect the material margin. With the effective operational control and revenue growth, personnel costs have remained at a competitive level.

Finnish operations

MEUR	Q42023	Q4 2022	Q1–Q4 2023	Q1–Q4 2022
Turnover	78.2	71.4	292.6	251.2
Operational EBITDA	9.5	10.6	35.6	34.8
EBIT	8.3	8.4	30.7	28.2
EBIT, %	10.6	11.8	10.5	11.2
Material margin, %	76.7	76.9	75.5	75.3
Personnel expenses, %	33.8	32.5	32.7	32.8

In October–December 2023, the turnover increased by 9.6% to MEUR 78.2 (71.4) compared to the previous year. Operational EBITDA was MEUR 9.5 (10.6). EBIT in October–December was MEUR 8.3 (8.4) with an 10.6% (11.8%) EBIT margin.

In January–December 2023, the turnover increased by 16.5% to MEUR 292.6 (251.2) compared to the previous year. Operational EBITDA was MEUR 35.6 (34.8). EBIT was MEUR 30.7 (28.2) with an 10.5% (11.2%) EBIT margin. Comparable BBS transaction cost adjusted operational EBITDA was MEUR 36.5 and EBIT was MEUR 31.5 with an 10.8% EBIT margin.

International business

MEUR	Q4 2023	Q4 2022	Q1–Q4 2023	Q1–Q4 2022
Turnover	28.9	16.7	79.7	61.6
Operational EBITDA	4.0	0.9	9.1	6.8
EBIT	2.3	0.1	5.3	3.4
EBIT, %	7.9	0.7	6.6	5.5
Material margin, %	71.0	74.7	73.9	75.3
Personnel expenses, %	30.0	34.4	31.7	35.1

In October–December 2023, turnover increased by 72.9% from the previous year to MEUR 28.9 (16.7). Operational EBITDA was MEUR 4.0 (0.9). EBIT was MEUR 2.3 (0.1) with an 7.9% (0.7%) EBIT margin.

In January–December 2023, turnover increased by 29.5% from the previous year to MEUR 79.7 (61.6) Operational EBITDA was MEUR 9.1 (6.8). EBIT was MEUR 5.3 (3.4) with an 6.6% (5.5%) EBIT margin. Comparable BBS transaction costs adjusted operational EBITDA was MEUR 9.8 and EBIT was MEUR 5.9 with an 7.4% EBIT margin.

DIVIDEND

NoHo Partners Plc’s distributable assets on 31 December 2023 were EUR 103,750,156.08, of which the share of the financial period’s result is EUR -5,181,668.54.

NoHo Partners Plc’s Board of Directors proposes to the Annual General Meeting convening on 10 April 2024 that, a dividend of EUR 0.43 (0.40) per share will be paid based on the adopted balance sheet of the financial period ending on 31 December 2023. The dividend record date(s) and the payment date(s) will be announced in due course.

At the time of the financial statements on 31 December 2023, the total number of shares was 20,975,678.

BRIEFING FOR THE MEDIA, ANALYSTS AND INVESTORS

A briefing for the media, analysts and investors will be organized today 15 February 2024 at 10:00 EET. At the event, Noho Partners’ CEO Aku Vikström will present the company’s financial performance and key events during the reporting period as well as the current state of business and the outlook.

The briefing can be followed as a live webcast at https://noho.videosync.fi/q4-2023. During the presentation, the questions can be placed through the webcast chat function. The briefing will be held in Finnish and the recording of the webcast shall be available on the company’s website later today.

Additional information
Aku Vikström, CEO, [email protected] (Executive assistant Niina Kilpeläinen, tel. +358 50 413 8158)
Jarno Suominen, Deputy CEO, tel. +358 40 721 5655
Jarno Vilponen, CFO, tel. +358 40 721 9376

NoHo Partners Plc

NoHo Partners Plc is a Finnish group established in 1996, and it specialises in restaurant services being the creative innovator of the Northern European restaurant market. The company was listed in Nasdaq Helsinki in 2013 becoming the first Finnish listed restaurant company, and it has continued to grow strongly throughout its history.

The Group companies include some 300 restaurants in Finland, Denmark, Norway and Switzerland. The well-known restaurant concepts include Elite, Savoy, Teatteri, Sea Horse, Stefan’s Steakhouse, Palace, Löyly, Friends & Brgrs, Campingen, Cock’s & Cows and Holy Cow!. Depending on the season, NoHo Partners employs approx. 2,800 people converted into full-time employees, and in 2023, company’s turnover amounted to approx. MEUR 370. NoHo Partners’ vision is to be the leading restaurant company in Northern Europe. More information is available at noho.fi/en.