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Wed 19th Dec 2018 - Caffe Nero plans to open 80 sites worldwide over next year, launching in Sweden after snapping up 11 outlets
Caffe Nero plans to open 80 sites worldwide over next year, launching in Sweden after snapping up 11 outlets: Caffe Nero has said it plans to open 80 sites worldwide over the next year and has snapped up 11 outlets in Sweden as it prepares to launch into the country next year. The company, which also operates Harris + Hoole and coffee brand Aroma as well as a specialist coffee-roasting facility, revealed its expansion plans in its accounts for the year ending 31 May 2018 filed at Companies House. Caffe Nero head of communications Gareth Hopley told Propel the Swedish sites had been acquired as part of the company's exploration for growth in Europe, while the group had continued to see growth in its current financial year. The company, which issued brief results in the summer, stated: “As at 31 May 2018, the group had a total of 883 stores in nine countries. A total of 72 stores were opened during the year, with 11 sites handed back to landlords. In the UK and Ireland, Caffe Nero had 666 stores operating in more than 250 towns and cities at year end. It opened 38 stores in the year and handed nine back to landlords resulting in a net increase of 29 stores or 4.4% of the estate in these two countries. The acquisition of Harris + Hoole in June 2016 added 36 stores to the group, with an additional site opened in the prior year and a further site opening this year, taking the total to 38 stores. Harris + Hoole was profitable during the year and the directors believe it has strong potential alongside Caffe Nero. The group opened four stores in Turkey. Caffe Nero Turkey had a total of 56 stores at year end. Continued progress is expected as Caffe Nero is scheduled to roll out stores in Turkey in the coming year. Green Caffe Nero, as the brand is known in Poland, opened 13 sites during the year and closed one store, bringing the total to 63. Green Caffe Nero achieved a positive performance at Ebitda level and the directors are very encouraged by its performance. The group opened nine sites in Massachusetts in the US in the year, bringing its total in the US to 22. The directors are satisfied with the performance of these new sites and further openings are expected in FYI9. The group has a number of franchises operating in the United Arab Emirates, Croatia, Cyprus and now in Oman, where three sites were opened in the year. At the year-end, 21 Caffe Nero stores were open in the United Arab Emirates, two in Croatia, 12 in Cyprus (three new stores) and three in Oman. We expect to open about 80 stores next year worldwide. On 24 September, Caffe Nero Ventures acquired 11 stores in Sweden with a view to converting these stores to the Caffe Nero brand during the course of the year. The company continues to build the foundation of Aroma and is currently mobilising its entry into the market.” Further details were also given about the company’s financial performance. Revenue increased to £334.4m, compared with £313.1m the previous year. Adjusted Ebitda was up 6.4% to £45.2m, compared with £42.5m the previous year. Store profit was up to £75.2m, compared with £71.5m the year before. Pre-tax losses remained flat at £25.5m. As previously reported, like-for-like sales increased 2.3%. The company stated: “The directors aim to maintain the management policies that have resulted in the UK group’s substantial growth in recent years. They consider the next year will show further significant growth in sales from continuing operations and from the addition of new stores across its nine territories.”

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