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Mon 31st May 2021 - Caffe Nero reports new digital and delivery channels generating sales of £320,000 a week
Caffe Nero reports new digital and delivery channels generating sales of £320,000 a week: Caffe Nero has reported new digital and delivery channels are generating sales of £320,000 a week, while it has also repaid all of its covid financial support. The company used lockdown to branch into the delivery and digital arena, which has offered another revenue channel over the past year. Sales from these new channels over the past 12 months have an annualised run rate of circa £16m, Caffe Nero said, as it is now listed on UberEats. Its coffee products have also recently been listed on Amazon as well as with Sainsbury’s. Revenue is set to double with these new channels in the upcoming financial year, Caffe Nero added. The business has been cash flow positive each month for the past six months. After paying back a £12.2m liquidity facility loan, which was extended a year ago by its banking syndicate, Caffe Nero has now repaid all covid-19 support loans from the bank. For the upcoming 12 months, the company reported it is forecast to meet all of its banking covenants. Current trading is ahead of forecasts, according to the company, at 70% to 80% of levels seen in 2019. Founder and group chief executive Gerry Ford said: “Sales are picking up and the last quarter has given us a lot of positive momentum. Covid-19, with its government enforced closures and restrictions, made for a challenging 14 months.” For the year ending 31 May 2020, UK sales fell 22%, taking revenue from £292.6m to £239.7m. The company traded strongly for the first three quarters of the FY20 financial year with like-for-like sales up 2.3%, before experiencing a highly punitive fourth quarter when all its stores were closed due to the covid-19 pandemic. UK Ebitda was £17.6m in the year and there was a pre-tax loss of £6.0m (before IFRS 16 lease adjustments). Ford added: “We are gaining strength each week. Prior to the pandemic we were trading strongly and had a fantastic track record. We are starting to see that same trading pattern return. Caffe Nero has been cash flow positive for six months despite restrictions and I anticipate the next six months we will move ahead sharply again.”

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