Savor issues earnings guidance, provides trading update

Savor Limited (NZX: SVR) (“Savor” or with its subsidiaries “the Group”), New Zealand’s premier hospitality group, provides an update on summer trading and issues year end earnings guidance.

Highlights:
• Savor experiences record sales for the month of December 2022 of $6.8m, with multiple venues achieving new sales records.
• Investment in recruitment during the year provided a strong base to maximise trading results during the summer period.
• Close cost control measures through this time allowed the Group to improve margins and provide a base for the coming months.
• This solid period of trading allows the Group to provide earnings guidance of between $5 and $6 million for the financial year ending 31 March 2023.
• The Group reaffirms guidance for the 2024 financial year of revenue in excess of $70 million and operating earnings in excess of $10 million.

Trading Update
Savor has experienced some of its strongest trading results throughout November and December to date. A number of the Group’s signature venues have seen record daily and weekly sales, including Amano, Bivacco, Non Solo Pizza, and Azabu Mission Bay. This culminated in revenue for the month of December of $6.8m, the highest in the Group’s history, with Bivacco surpassing all expectations for the site.

Savor took significant proactive measures during the Spring season in response to the hospitality labour shortage to ensure strong levels of staffing to hold through the busy summer trading period. This investment has paid off significantly, as the Group has now reopened all venues as well as opening OJI Sushi and The Store at Auckland Fish Market in mid December 2022. The Group continues to steadily extend its trading hours where staffing levels allow and there continues to be a strong pipeline of both local and international recruitment.

The lift in sales during this period combined with continued strong cost control has led to improved cost efficiencies and economies of scale, resulting in further protection of existing margin levels. The Group continues to pursue savings through bulk purchasing of goods and expects to expand this focus further throughout the 2023 calendar year.

These factors, combined with the strong trading performance through the early summer months, give the Group confidence to be able to provide market guidance for the financial year ending 31 March 2023.

Year End Guidance
The Group currently expects operating earnings* for the financial year ending 31 March 2023 to be between $5 and $6 million (2022: $1.8 million).

The Group also reaffirms the guidance provided at the Annual Shareholders Meeting (ASM) in August 2022 for the FY24 financial year of revenue in excess of $70 million and operating earnings in excess of $10 million. This guidance assumes a similar level of trading to current operations.

*Operating earnings means reported earnings before interest, tax, depreciation, amortisation and restructuring costs, as reported in the Group’s Statement of Comprehensive Income.

-ENDS-

Investor Enquiries
Tim Peat
CFO, Savor
Mobile: 021 049 7442
Email: [email protected]

About Savor
Savor, established in 2011, is one of New Zealand’s largest hospitality businesses with 18 iconic venues in Auckland, including Amano, Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza, each with its own unique concept, culture and offering. In 2022, Savor opened Bivacco in Auckland’s Viaduct Harbour and brought iconic Melbourne concept MoVida to Britomart’s Seafarers Building. Savor has a reputation for originality, the quality of its products and the high standard of service that is consistent across the company portfolio.

---

Announcement PDF