NoHo Partners Plc, Stock Exchange Release, 7 May 2024 at 8:00 EET

NoHo Partners Plc's Interim Report 1 January-31 March 2024: Profitability endures even in slight headwinds

This release is a summary of NoHo Partner's Interim Report for 1 January-31 March 2024. The complete report is attached to this release and is also available at www.noho.fi/en.

• Turnover increased by 23.1% and was MEUR 93.5 (75.9).
• Operational EBITDA increased by 12.9% to MEUR 9.1 (8.1).
• EBIT increased by 15.7% and was MEUR 6.9 (5.9).
• EBIT margin was 7.3% (7.8%)
• The result for the period decreased by 103.2% and was MEUR -0.1 (2.4). The result adjusted by entries related to Eezy Plc shares was MEUR 1.2 (1.8)
• Earnings per share decreased by 129.9% and were EUR -0.03 (0.09). Earnings per share adjusted by entries related to Eezy Plc shares was EUR 0.03 (0.06). 

Unless otherwise stated, figures in parentheses refer to the corresponding period last year.

KEY FIGURES

MEUR Q1 Q1 Change, Q1-Q4

2024 2023 % 2023
Turnover 93.5 75.9 23.1 372.4
Operational EBITDA 9.1 8.1 12.9 44.7
EBIT 6.9 5.9 15.7 35.9
EBIT, % 7.3 7.8 9.7 *
Result of the financial period -0.1 2.4 -103.2 10.4
Earnings per share for the review period -0.03 0.09 -129.9 0.38
attributable to the owners of the company,
EUR
Earnings per share adjusted by entries 0.03 0.06 -47.4 0.73
related to Eezy Plc shares, EUR
Interest-bearing net liabilities excluding 126.9 117.6 7.9 134.6
IFRS 16 impact
Gearing ratio excluding IFRS 16 impact, % 110.1 131.4 116.2
Ratio of net debt to operational EBITDA 2.8 2.4 3.0
excluding IFRS 16 impact
Adjusted equity ratio, % 30.3 29.5 29.7
Material margin, % 74.3 75.1 75.2
Personnel expenses, % 33.0 33.2 32.5

*Comparable EBIT margin for the financial period ending 31 December 2023 was 10.1%

FUTURE OUTLOOK

Profit guidance as of 15 February 2024

NoHo Partners estimates that, during the financial year 2024, it will achieve total turnover of approx. MEUR 430 and EBIT margin of approx. 9.5%.

The company will update its long-term strategic and financial targets for the next strategy cycle 2025-2027 and publish them in the Capital Markets Day that will be held on 22 May 2024.

CEO REVIEW

We achieved the 7.3 % EBIT margin in the traditionally weakest quarter, which I consider to be a strong performance in the current market environment. It demonstrates our sustainable business model and the ability of the organisation to adapt to changes in the operating environment. Our international business had a strong EBIT margin of more than 8 %, and profitability in Finland has also remained at a good level of around 7 %, even in a fluctuating demand environment.

The profitable growth of Swiss Holy Cow! burger chain continued during the reporting period and was at an excellent level, while Norway and Denmark continued at the good profitability level seen in the previous year. In Finland, our food restaurant portfolio performed as expected, and organic growth in fast food continued. The beginning of the year has been twofold for entertainment venues, and the decline in purchasing power is particularly evident in nightclubs popular among students. Correspondingly, pubs traditionally perform well even in a weaker economic cycle.

Net debt continued to decline towards our target ratio in the current interest rate environment meaning 2.5 to operational EBITDA. In accordance with the resolution of the Annual General Meeting held in April 2024, the company pays an increasing dividend of EUR 0.43 (0.40) for the financial period ended 31 December 2023. The strengthening balance sheet and declining net debt will enable profitable growth in line with the company's strategy, together with an increasing dividend payment, in the future as well.

We expect demand to continue to fluctuate also in the second quarter. However, our operating model is very flexible and we expect profitable growth to continue even in a weaker economic cycle. Interest rates have a direct impact on households' purchasing power. Possible interest rate cuts will boost demand in the second half of the year.

We will achieve our targets for the previous strategy period ahead of schedule during this year. We will publish the targets for the strategy period lasting until 2027 at the Capital Markets Day to be held on 22 May in Helsinki.

TURNOVER AND INCOME

In January-March 2024, the Group's turnover increased by 23.1% to MEUR 93.5 (75.9). Operational EBITDA increased by 12.9% compared to the corresponding period in the previous year and was MEUR 9.1 (8.1). EBIT was MEUR 6.9 (5.9) with an EBIT margin of 7.3% (7.8%). The result for the period was MEUR -0.1 (2.4). The result adjusted by entries related to Eezy Plc shares was MEUR 1.2 (1.8) and decreased by 36.6%.

The company was able to balance the effects of inflation on its business through centralised purchasing agreements and price increases, and the general rise in prices did not significantly affect the material margin. With the effective operational control and revenue growth, personnel costs have remained at a competitive level.

Finnish operations

MEUR Q1 Q1 Q1-Q4

2024 2023 2023
Turnover 65.7 61.5 292.6
Operational EBITDA 5.7 6.5 35.6
EBIT 4.5 5.1 30.7
EBIT, % 6.9 8.3 10.5
Material margin, % 75.5 74.7 75.5
Personnel expenses, % 33.5 33.1 32.7

In January-March 2024, the turnover increased by 6.8% to MEUR 65.7 (61.5) compared to the previous year. Operational EBITDA was MEUR 5.7 (6.5). EBIT was MEUR 4.5 (5.1) with an 6.9% (8.3%) EBIT margin.

International business

MEUR Q1 Q1 Q1-Q4

2024 2023 2023
Turnover 27.8 14.4 79.7
Operational EBITDA 3.4 1.6 9.1
EBIT 2.3 0.8 5.3
EBIT, % 8.5 5.6 6.6
Material margin, % 71.5 76.5 73.9
Personnel expenses, % 31.7 33.8 31.7

In January-March 2024, turnover increased by 92.4% from the previous year to MEUR 27.8 (14.4) Operational EBITDA was MEUR 3.4 (1.6). EBIT was MEUR 2.3 (0.8) with an 8.5% (5.6%) EBIT margin.

BRIEFING FOR THE MEDIA, ANALYSTS AND INVESTORS

A briefing for the media, analysts and investors will be organized today 7 May 2024 at 10:00 EET. At the event, Noho Partners' CEO Aku Vikström will present the company's financial performance and key events during the reporting period as well as the current state of business and the outlook.

The briefing can be followed as a live webcast at https://noho.videosync.fi/q1-2024. During the presentation, the questions can be placed through the webcast chat function. The briefing will be held in Finnish and the recording of the webcast shall be available on the company's website later on the same day.

Additional information
Aku Vikström, CEO, aku.vikstrom@noho.fi(Executive assistant Niina Kilpeläinen, tel. +358 50 413 8158)
Jarno Suominen, Deputy CEO, tel. +358 40 721 5655
Jarno Vilponen, CFO, tel. +358 40 721 9376

NoHo Partners Plc

NoHo Partners Plc is a Finnish group established in 1996, and it specialises in restaurant services being the creative innovator of the Northern European restaurant market. The company was listed in Nasdaq Helsinki in 2013 becoming the first Finnish listed restaurant company, and it has continued to grow strongly throughout its history.

The Group companies include some 300 restaurants in Finland, Denmark, Norway and Switzerland. The well-known restaurant concepts include Elite, Savoy, Teatteri, Sea Horse, Stefan's Steakhouse, Palace, Löyly, Friends & Brgrs, Campingen, Cock's & Cows and Holy Cow!. Depending on the season, NoHo Partners employs approx. 2,800 people converted into full-time employees, and in 2023, company's turnover amounted to approx. MEUR 370. NoHo Partners' vision is to be the leading restaurant company in Northern Europe. More information is available at noho.fi/en.