NoHo Partners Plc’s Half Year Financial Report 1 January – 30 June 2024: Good performance in a sluggish market

NoHo Partners Plc, Stock Exchange Release, 6 August 2024 at 8:00 EET

NoHo Partners Plc’s Half Year Financial Report 1 January – 30 June 2024: Good performance in a sluggish market

This release is a summary of NoHo Partner’s Half Year Financial Report for 1 January–30 June 2024. The complete report is attached to this release and is also available at www.noho.fi/en.

APRIL–JUNE 2024 IN BRIEF

•         Turnover was MEUR 107.0 (93.3) and increased by 14.7%.

•         Operational EBITDA was MEUR 12.2 (12.6) and decreased by 3.5%.

•         EBIT was MEUR 9.7 (10.7) and decreased by 9.8%.

•         EBIT margin was 9.1% (11.5%).

•         The result for the period was MEUR 3.5 (4.1) and decreased by 15.9%.

•         Earnings per share were EUR 0.11 (0.17) and decreased by 37.5%.

JANUARY–JUNE 2024 IN BRIEF

•         Turnover was MEUR 200.5 (169.2) and increased by 18.5%.

•         Operational EBITDA was MEUR 21.3 (20.7) and increased by 2.9%.

•         EBIT was MEUR 16.6 (16.7) and decreased by 0.8%.

•         EBIT margin was 8.3% (9.9%).

•         The result for the period was MEUR 3.4 (6.6) and decreased by 48.4%. The result adjusted by entries related to Eezy Plc shares was MEUR 4.6 (7.7).

•         Earnings per share were EUR 0.08 (0.26) and decreased by 69.7%. Earnings per share adjusted by entries related to Eezy Plc shares were EUR 0.14 (0.31) and decreased by 55.6%.

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

KEY FIGURES

MEUR	Q2 2024	Q2 2023	Change, %	Q1–Q2 2024	Q1–Q2 2023	Change, %	2023
Turnover	107.0	93.3	14.7	200.5	169.2	18.5	372.4
Operational EBITDA	12.2	12.6	-3.5	21.3	20.7	2.9	44.7
EBIT	9.7	10.7	-9.8	16.6	16.7	-0.8	35.9
EBIT, %	9.1	11.5		8.3	9.9		9.7	*
Result of the financial period	3.5	4.1	-15.9	3.4	6.6	-48.4	10.4
Earnings per share for the review period attributable to the owners of the company, EUR	0.11	0.17	-37.5	0.08	0.26	-69.7	0.38
Earnings per share adjusted by entries related to Eezy Plc shares, EUR	0.11	0.25	-57.5	0.14	0.31	-55.6	0.73
Interest-bearing net liabilities excluding IFRS 16 impact				125.4	122.9		134.6
Gearing ratio excluding IFRS 16 impact, %				122.2	147.5		116.2
Ratio of net debt to operational EBITDA excluding IFRS 16 impact				2.8	2.9		3.0
Adjusted equity ratio, %				26.4	25.9		29.7
Material margin, %	74.2	75.4		74.3	75.3		75.2
Personnel expenses, %	32.8	32.7		32.9	32.9		32.5

 

*Comparable EBIT margin for the financial period ending 31 December 2023 was 10.1%

The calculation formulas for key figures are presented on page 28 of the Interim Report.

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%.

Financial targets for the strategy period 2025–2027

The company’s long-term guidance is as follows:

In Finnish operations the group aims to achieve a turnover of approx. MEUR 400 and to maintain the current good level of EBIT margin. In international business, the target is profitable growth and creating shareholder value. In the long-term, the company aims to decrease the ratio of net debt to operational EBITDA, adjusted for IFRS 16 lease liability, to the level of approx. 2 and to distribute annually increasing dividend.

CEO REVIEW

The result for the second quarter of 2024 once again demonstrated good performance in a challenging market environment. Our extensive restaurant portfolio, flexible operating model and operational expertise continue to maintain a good profitability level also this year and lay the foundation for the development and growth of operations, both domestically and internationally.

The targets for the strategy period until 2027 were announced at the Capital Markets Day in May. In accordance with the new strategy, we will continue profitable growth in the Finnish restaurant and entertainment market. A new operating model will accelerate international growth through active investment activities. As a part of these investment activities, the company acquired the Danish packaging material supplier Triple Trading during the review period. Its integration into NoHo Partners is progressing according to plan and will provide the Group with significant synergy benefits going forward. The turnover of Better Burger Society, which focuses on the growing European premium burger market, continued to grow in both Finland and Switzerland. The success of these chains is based on proven products and concepts, as well as good demand for higher-quality burgers. The opening of a total of seven units – three in Finland and four in Switzerland – has been confirmed for the second half of the year.

The development of domestic restaurant operations continues to be slowed down by pressure on consumers’ purchasing power and consumers’ weak confidence in economic development. The demand for restaurants is driven by the strong development of restaurant culture and eating out, especially at weekends. In the entertainment market, the downturn in nightclubs continues, while the market is recovering as overcapacity disappears. We expect a gradual increase in customers’ purchasing power to be reflected in the consumption of restaurant services by the end of the year. This is also supported by the good number of reservations for the latter part of the year with regard to events and corporate customers.

As this is my last interim report for the company, I would also like to thank all of our customers, employees, the Board of Directors and shareholders for the trust they have placed in us during the phases we have been through. NoHo Partners is in an excellent condition and its organisation employs the best professionals in the industry. The company will have a new CEO, with whom I have had the privilege to work closely throughout NoHo Partners’ history. Jarno Suominen is the best possible person to continue together with our competent executive management team to implement company’s strategy for sustainable and profitable growth to pursue the objectives set for 2027.

TURNOVER AND INCOME

In April–June 2024, the Group’s turnover increased by 14.7% to MEUR 107.0 (93.3). Operational EBITDA was MEUR 12.2 (12.6) and decreased by 3.5%. EBIT was MEUR 9.7 (10.7) with an EBIT margin of 9.1% (11.5%). The result for April–June was MEUR 3.5 (4.1). The result of the comparison period was negatively affected by MEUR 1.7 entries related to Eezy Plc’s shares.

In January–June 2024, the Group’s turnover increased by 18.5% to MEUR 200.5 (169.2). Operational EBITDA was MEUR 21.3 (20.7) and increased by 2.9% compared to the corresponding period in the previous year. EBIT was MEUR 16.6 (16.7) with an EBIT margin of 8.3% (9.9%). The result for the period was MEUR 3.4 (6.6). The result adjusted by entries related to Eezy Plc shares was MEUR 4.6 (7.7) and decreased by 39.8%.

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	Q2 2024	Q2 2023	Q1–Q2 2024	Q1–Q2 2023	2023
Turnover	73.5	77.4	139.2	138.9	292.6
Operational EBITDA	7.9	10.8	13.6	17.3	35.6
EBIT	6.7	9.5	11.2	14.6	30.7
EBIT, %	9.1	12.3	8.0	10.5	10.5
Material margin, %	75.2	75.3	75.4	75.0	75.5
Personnel expenses, %	33.1	32.5	33.3	32.8	32.7

In April–June 2024, the turnover decreased by 5.0% to MEUR 73.5 (77.4) compared to the previous year. Operational EBITDA was MEUR 7.9 (10.8). EBIT in April–June was MEUR 6.7 (9.5) with an 9.1% (12.3%) EBIT margin. The turnover and profitability of the comparison period were at an exceptionally high level due to the Ice Hockey World Championships organized at Nokia Arena in Tampere.

In January–June 2024, the turnover increased by 0.2% to MEUR 139.2 (138.9) compared to the previous year. Operational EBITDA was MEUR 13.6 (17.3). EBIT was MEUR 11.2 (14.6) with an 8.0% (10.5%) EBIT margin.

International business

MEUR	Q2 2024	Q2 2023	Q1–Q2 2024	Q1–Q2 2023	2023
Turnover	33.5	15.9	61.3	30.3	79.7
Operational EBITDA	4.3	1.9	7.7	3.5	9.1
EBIT	3.0	1.2	5.4	2.1	5.3
EBIT, %	9.0	7.8	8.8	6.8	6.6
Material margin, %	71.7	76.0	71.6	76.2	73.9
Personnel expenses, %	32.2	33.7	32.0	33.8	31.7

In April–June 2024, turnover increased by 110.7% from the previous year to MEUR 33.5 (15.9). MEUR 11.7 of the increase in turnover can be explained by the expansion into Switzerland from 1 September 2023. Operational EBITDA was MEUR 4.3 (1.9). EBIT was MEUR 3.0 (1.2) with an 9.0% (7.8%) EBIT margin.

In January–June 2024, turnover increased by 102.0% from the previous year to MEUR 61.3 (30.3). MEUR 24.0 of the increase in turnover can be explained by the expansion into Switzerland from 1 September 2023. Operational EBITDA was MEUR 7.7 (3.5). EBIT was MEUR 5.4 (2.1) with an 8.8% (6.8%) EBIT margin.

BRIEFING FOR THE MEDIA, ANALYSTS AND INVESTORS

A briefing for the media, analysts and investors will be organized today 6 August 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/q2-2024. During the presentation, the questions can be placed through the webcast chat function or by phone. The briefing will be held in Finnish and the recording of the webcast shall be available on the company’s website later on the same day.

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 operator in Northern Europe. More information is available at noho.fi/en.