Oliver’s reports return to profitability
The group ended FY2023 with a net profit after tax of $5.9m compared to $11.7m loss last year.
Oliver’s Real Food reported a net profit after tax of $5.9m for the year ended 30 June 2023, a massive turnaround from a loss of $11.7m last year.
According to the Natalie Sharpe, CEO of Oliver’s the return to profitability was the result of a successful restructure and strategic repositioning as a business.
The group reported that net impairments were Nil vs. $9.7m in FY2022. The lease terminations at Geelong North and South, Peninsula Inbound and Outbound, and Eastlink Inbound and Outbound, resulted in a write-back of lease liabilities of $6.4m vs. $2.5m in FY22
“Overall EBITDAI, removing the effect of the writebacks, was a profit of $2.8 million vs. a loss of 31K in FY22. This is a significant result as it directly reflects the positive impact of the restructure and the efforts of both the Board and management,” Sharpe said.
Improvements in procurement, supply chain efficiencies, and implementing a revised menu have also increased the group’s gross margin from 54% in FY2022 to 63% in FY2023.
Sharpe said that this is a great achievement by the management team as it was very challenging to increase margins in the QSR space and, at the same time, improve the quality of the business’ food offerings.
The next focus of the group will be to identify strategic growth opportunities and ensure that their positive gains over the last two years are protected and maximised.
“We still see great potential in furthering our success in select highway locations, but we are equally enthusiastic about the Inner-City model. This will be a slightly adapted business model with a stronger emphasis on grab-and-go rather than a restaurant menu. Locations will likely be high-density business districts and transport hubs. I look forward to sharing more on this in FY2204 as our plans are further developed,” Natalie Sharpe.
