HALFYR: BFW: Burger Fuel Worldwide Ltd Preliminary Half Year Result
REL: 0920 HRS Burger Fuel Worldwide Limited
HALFYR: BFW: Burger Fuel Worldwide Ltd Preliminary Half Year Result
Burger Fuel Worldwide Limited
Results for announcement to the market
Reporting Period: 6 Months to 30 September 2012
Previous Half-year Reporting Period: 6 Months to 30 September 2011
Amount (000's) Percentage change
Revenue from ordinary activities: 5,364 10.1%
Profit (loss) from ordinary activities after tax attributable to security
holders: 308 37%
Net profit (loss) attributable to security holder: 308 37%
Interim/Final Dividend Amount per security Imputed amount
Record Date -
Dividend Payment Date -
Comments:See attached Directors commentary and following
To be followed by the balance of the information required in the report
pursuant to Appendix 1.
The directors of Burger Fuel Worldwide Limited (BFW) are pleased to report
that the unaudited net profit before tax (NPBT) is up 102% to $454,356 for
the six months to 30 September 2012.
This compares with a NPBT of $224,554 for the same period last year.
Prior year tax losses in NZ have now been fully utilised and in FY13 it is
necessary to carry a tax provision. The Group reported a net profit after tax
(NPAT) of $308,372 to 30 September 2012.
Total unaudited BurgerFuel Worldwide system sales are $22,056,829 (excl GST)
up 26.5% on the same period last year.
BFW RESULTS (UNAUDITED) FOR THE PERIOD 1 APRIL TO 30 SEPTEMBER 2012
30 Sept 2012 30 Sept 2011
Operating Revenue 5,364 4,870
Operating Expenses (4,910) (4,645)
NPBT 454 225
NPAT 308 225
Total operating revenue is up by 10.1% from $4,869,700 to $5,363,877.
This takes into account the reduction in the company's revenue of $524,662 as
a result of the sale of the Australian company owned store to a franchisee.
The focus in FY13 has been on international expansion in the Middle East as
well as the continued re-shaping of the New Zealand business. This better
serves the overseas operations, as well as New Zealand.
Dubai has opened a new store in The Mall of the Emirates, the third largest
shopping mall in the Middle East. More stores are currently under
construction in Dubai and Saudi Arabia and they will open in this financial
year. Egypt is also anticipated to open its first store toward the end of
In New Zealand system sales remain strong and are up 5.8% with two new stores
and one relocated.
New Zealand continues to grow with a further two stores opening after 30
In Australia, we continue to operate one store under franchise and at this
stage there are no further stores planned there. The board will however
continue to monitor and reassess this position.
Results for this period demonstrate a determined focus to grow company
profits, whilst at the same time balancing out the need for further
investment into our international expansion.
As at 30 September 2012 the group had $2,310,829 in cash, up $1,151,462
(99.3%) on the prior period and has no borrowings.
Whilst we are always mindful of returning profits to shareholders by way of
dividends, it is essential at this time that we continue investment to
support growth and take a long-term view of our business.
On behalf of the board of directors of Burger Fuel Worldwide Limited, I would
like to thank all of our shareholders for their ongoing support.
CEO Report - First Half of 2012
From 1 April to 30 September our New Zealand business has enjoyed an
unaudited system sales increase of 5.8%.
The Hamilton region store locations were reviewed with the subsequent closure
of our central city site and the opening of a new site at The Base shopping
centre in the burgeoning northern suburbs.
Manukau was relocated to a preferred site and accordingly has increased its
turnover. BurgerFuel has also opened a new store in Cuba Street, Wellington.
More recently (subsequent to 30 September 2012) we opened two new stores in
Pukekohe and Silverdale. There are now 30 BurgerFuel outlets in NZ with more
scheduled to open in the second half of this financial year.
Our newer sites feature our latest store designs that we intend to roll out
to existing sites in the coming months. The dining-areas have more seating,
appealing to a broader audience and bringing alive our "eco-licious" and
cutting edge position in the market.
Kids Meals were introduced in this period and we also launched Radio
BurgerFuel, which is now streaming live to all our stores in New Zealand and
Australia. It's also available for public listening atwww.radioburgerfuel.com
The NZ business was successfully restructured in April to enable continued
growth here in our home market. We are actively recruiting new franchisees
for the main centres in the South Island and regional centres in the North
Island. In Auckland and Wellington our existing franchisees are looking to
open more stores and this is, in our view, a great endorsement of the
strength of our brand and business model.
Unaudited sales are up 6.1% for the 1 April to 30 September period.
Our company owned store was sold to a franchisee in August 2011, hence our
Australian sales revenue is down on the prior period.
We continue to have one franchised site in Sydney and Australia remains a
large potential market for us in the future.
BurgerFuel Middle East unaudited sales for the 1 April to 30 September period
are up 141% showing the importance of maintaining a presence in this region.
Many of the Middle Eastern stores have broken sales records this year during
the Eid festival (that marks the end of Ramadan).
In a shining endorsement of the strength of our brand and business model, our
existing Master Licensee in Dubai has acquired the Kuwait territory and also
entered into a joint venture with the Abu Dhabi based Bin Hammoodah Group to
open in the UAE city of Abu Dhabi in the near future. A new site has been
opened in Dubai's Mall of Emirates and more sites are planned to open in
Dubai before the end of the financial year.
We have shipped a full restaurant fit-out to our new Egypt licensee and look
forward to Cairo being added to the list of world cities we operate in.
All our existing sites in Saudi Arabia are in its Eastern Province and within
the next few weeks we will be opening in Riyadh, the capital of Saudi Arabia
with a population of 5.3 million.
BurgerFuel is performing strongly in every market that it operates in.
Worldwide system sales (unaudited) have increased to $22.1million, up 26.5%
on the same period last year.
BurgerFuel's operating revenue is up 10.1% to $5,363,877. Profitability
continues to improve for our franchisees and for Burger Fuel Worldwide Ltd
despite the fact we are continuing to invest for further growth.
We now have a variety of operating models that can be deployed in varying
market places to deliver the BurgerFuel experience that our customers value.
Our brand has broader appeal than it did a year ago, serving a wider
demographic of customers. We will continue with measured investment to
Engineer The Ultimate Burger in more locations throughout New Zealand and
We continue to demonstrate BurgerFuel's scalability as well as its
credibility in becoming an international brand in its own right. Onwards and
upwards as we continue the trend of more stores and more of New Zealand's
proudly exported, great tasting burgers.
Chief Executive Officer
End CA:00229963 For:BFW Type:HALFYR Time:2012-11-20 09:20:40