Burger Fuel Group (BFG) H2 2024 earnings summary

Executive summary

• Net profit after tax for FY24 was $1.33M, up 47.4% year-over-year, marking the strongest result since NZX listing in 2007.

• Total system sales (all brands, all regions) rose 10.22% to $117.1M, with group income up 13.58% to $27.3M compared to the prior year.

• Store network changes included openings in Dunedin and Rolleston, and closures in Christchurch, Takapuna, and Pukekohe.

• Legal costs related to a contested capital return scheme significantly impacted profit, with $205,500 spent in FY24 and further costs expected in FY25.

Financial highlights

• Operating revenue increased to $26.25M from $22.89M year-over-year.

• Net profit after tax was $1.33M, up from $0.9M in FY23.

• Total expenses rose to $25.39M from $22.76M year-over-year.

• Basic and diluted EPS were 2.64 cents, up from 1.79 cents in FY23.

• Net tangible assets per share increased to $0.21 from $0.18.

Outlook and guidance

• FY25 sales expected to be flat at best due to economic headwinds and reduced consumer spending.

• Focus will remain on investing in BurgerFuel, Shake Out, and technology, with Winner Winner development paused.

• Only one new BurgerFuel store (Whanganui) is likely to open in FY25 due to high construction costs.

• Management expects to remain profitable in FY25 but notes margin compression and rising costs may impact results.