The Restaurant Group PLC (LSE:RTN) (TRG), owner of Wagamama and Frankie & Benny’s among other food chains, has shaken off its loss-making 2022 with a profitable first half of 2023.
The group, which has contended with a tumultuous shareholder revolt in recent months, saw a 10% year-on-year revenue bump to £467.4 million in the 26 weeks to 2 July 2023, underpinned by adjusted earnings of £36.3 million, marking a 15% year-on-year improvement.
Statutory profit before tax came in at £2.3 million, a return to form after chalking up £28.5 million worth of losses in the last financial year.
Like-for-like sales at Wagamana have improved 7% year to date (including post-period performance), with TRG’s pubs chain improving 8% and the leisure segment dropping 3%.
But TRG’s concessions segment, referring to the group’s offerings at UK airports, was the real winner, surging 28% higher on the back of a revitalised travel sector.
Passenger volumes in airports where TRG operates recovered to 90% of 2019 volumes in the first half and 96% in the post-interim period.
Concessions have even surpassed pre-Covid levels, increasing by 3% in the first quarter, 10% in the second quarter, and 13% post period.
TRG’s net debt pile increased from £560.8 million to £585.5 million, with cash and cash equivalents on the balance sheet totalling £133 million.
Chief executive Andy Hornby commented: "We are encouraged by the significant progress made in the first eight months of the year, delivering strong like-for-like sales growth despite the consumer backdrop.
“We are making excellent progress on our medium-term plan and the board continues to actively explore strategic options to further accelerate margin accretion and deleveraging.”
TRG is aiming to reduce net debt to between £180 million and £190 million by the end of the year.