Nando’s sales are firmly on course to surpass a billion pounds in 2019 after its latest accounts revealed the business is continuing to grow at a double-digit rate.
Turnover for the 12 months to 25 February 2018 increased 14% to £969.3m, driven largely by organic growth in key markets.
The growth means that Nando’s has added more than £121m to its top line in the space of a year, with the company pointing to new restaurant openings and franchise acquisitions as other factors for the hike.
It spent almost £8m buying up 24 franchisees in Australia and New Zealand, according to its most recent annual report filed with Companies House this week.
The growth in turnover was not mirrored in terms of its profits, however.
Operating profit fell by £4m year-on-year to £42.8m, primarily as a result of higher costs associated with expanding the business. Its CAPEX bill exceeded £100m during the year as it invested in new restaurants and infrastructure and expanded its international footprint.
Nando’s ended the year with a loss of £36.1m, compared with a profit of £19.5m last year (although the prior year’s figure included £50.7m from discounted operations).
Nando’s opened 29 net new restaurants in the period, giving it 937 sites at year-end. This is comprised of 711 company-owned sites and 226 franchises. Its headcount grew by 2,000 to 19,500 in the process.
The company noted that its results include revenues and costs from smaller developing overseas markets that have not fully matured and where it is still seeking to reach critical mass. It said that “significant” growth potential exists in these markets and it will continue to invest in opening new restaurants.
The chain said that the flame-grilled Peri Peri chicken produced by its kitchens would remain at the core of what it delivers.
“Our food teams are fully aligned behind one food manifesto, ensuring that our food is consistently and excellently executed across all markets. Nando’s continually drives innovation through new menu ideas, service models and technology,” it stated.