Positive profit warning: NoHo Partners Plc to increase its profit guidance for 2019
NoHo Partners Plc
INSIDE INFORMATION 18 DECEMBER 2019 at 8:00 a.m.
Positive profit warning: NoHo Partners Plc to increase its profit guidance for 2019
NoHo Partners Plc is updating its outlook and increasing its profit guidance for 2019 for the entire Group and its restaurant business (comparable continuing operations). The reasons behind the improved profit outlook include the successful execution of the company’s profitable growth strategy ahead of schedule, the discontinuation of the labour hire business and the restaurant business’s successful last quarter of 2019.
“Our profitable growth strategy is proceeding ahead of schedule, and we are well on our way towards our goal for 2021 and an EBIT margin of approximately 8 per cent in the restaurant business. The objective of our strategy period’s first phase was to achieve a clear profit turnaround. Now, we have succeeded in raising the profitability to a good level, completed the synergies of the Royal Ravintolat acquisition and really started to go global. In the next phase, we will accelerate our growth, not giving up on our profitability targets,” says Aku Vikström, CEO of NoHo Partners.
New profit guidance (as of 18 December 2019):
Due to the labour hire business transaction and the outlook of the restaurant business during the rest of the year, NoHo Partners Group achieves an estimated turnover of MEUR 270 and an EBIT margin of 11 per cent. The turnover of the restaurant business (comparable continuing operations) is an estimated MEUR 270 million and the EBIT margin 6.5 per cent.
In the Group’s restaurant business, the long-term guidance remains unchanged: the goal is to achieve a turnover of approximately MEUR 350 and an EBIT margin of approximately 8 per cent by the end of 2021. The Group will update the estimate for the financial period on an annual basis in conjunction with the publication of the result for the fourth quarter.
Previous profit guidance (as of 12 November 2019):
Due to the labour hire business transaction and the outlook of the restaurant business during the rest of the year, NoHo Partners estimates that, during the financial period 2019, the Group achieves a total turnover of approximately MEUR 260 and an EBIT margin of more than 10 per cent. The turnover of the restaurant business (comparable continuing operations) is estimated to be approximately MEUR 260 million and the EBIT margin to exceed 6 per cent.
In the Group’s restaurant business, the long-term guidance remains unchanged: the goal is to achieve a turnover of approximately MEUR 350 and an EBIT margin of approximately 8 per cent by the end of 2021. The Group will update the estimate for the financial period on an annual basis in conjunction with the publication of the result for the fourth quarter.
Additional information:
Aku Vikström, CEO, NoHo Partners Plc, tel. +358 44 011 1989
Jarno Suominen, CFO, Deputy CEO, NoHo Partners Plc, tel. +358 40 721 5655
Distribution:
NASDAQ Helsinki
Major media
www.noho.fi
NoHo Partners Plc is a Finnish group established in 1996, specialising in restaurant services. The company, which was listed on NASDAQ Helsinki in 2013 and became the first Finnish listed restaurant company, has continued to grow strongly throughout its history. The Group companies include some 250 restaurants in Finland, Denmark and Norway. Well-known restaurant concepts of the company include Elite, Savoy, Teatteri, Yes Yes Yes, Stefan’s Steakhouse, Palace, Löyly, Hanko Sushi and Cock’s & Cows. In 2018, NoHo Partners Plc’s turnover was MEUR 323.2 and EBIT MEUR 7.2. Depending on the season, the Group employs approximately 2,100 people converted into full-time workers.
NoHo Partners corporate website: www.noho.fi
NoHo Partners consumer websites: www.ravintola.fi and www.royalravintolat.fi