Savor reports 40% revenue increase, improved losses

Hospitality group, Savor, has announced its half-year results for the period ending 30 September 2023.

The company reported a 40% increase in revenue, reaching $29.1 million.

Earnings before interest, tax, depreciation, amortisation, and restructuring costs (EBITDA) were $3.1 million, a significant 132% increase compared to the previous year.

Operating cash flow also saw growth, exceeding $2.5 million.

However, Savor's net profit after tax was a loss of $0.1 million, an improvement from the $1.7 million loss in the prior year when adjusting for one-off restructuring and interest costs.

Including those charges, the net profit after tax was a loss of $0.4 million.

Savor attributed its strong performance to sustained cost control, particularly in labour and cost of goods sold, which are its most significant expenses.

Labour costs decreased by approximately 2% of sales compared to the previous year, thanks to efficient rostering and headcount reductions.

Cost of goods sold also improved, down 0.5% as a percentage of sales, and the company continued to streamline its supplier base to seek efficiencies.

Savor's revenue growth, however, was impacted by fluctuating weather, macro-economic headwinds, and cost of living pressures.