Savor announces half year result

Results Announcement
(for Equity Security issuer)



Results for announcement to the market
Name of issuer Savor Limited
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
29,075 40.4%
Total Revenue 29,075 40.4%
Net profit/(loss) from continuing
operations
(421) 80.3%
Total net profit/(loss) (421) 80.3%
Interim Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable

Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$(0.11) $(0.16)
A brief explanation of any of the
figures above necessary to enable
the figures to be understood

Authority for this announcement
Name of person authorised to make
this announcement
Tim Peat
Contact person for this
announcement
Tim Peat
Contact phone number +64 21 049 7442
Contact email address
tim@savor.co.nz
Date of release through MAP 28/11/2023

Unaudited financial statements accompany this announcement.

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NZX Release

Savor Announces Half Year Result

28 November 2023
Savor Limited (NZX: SVR) (“Savor”, “the Company”, or with its subsidiaries “the Group”), New
Zealand’s premier hospitality group, provides its results for the financial half year ended 30
September 2023.


Highlights:
• Savor’s revenue was $29.1m for the period, an increase of over 40% compared to the prior
period.
• EBITDA
* was $3.1m, increasing over 132% compared to the prior year.
• Operating cash flow exceeded $2.5m, compared to $1.6m in the prior year.
• Net profit after tax was ($0.1m) compared to ($1.7m) in the prior year, after adjusting for
one-off restructuring and interest costs during the year. Including those charges net profit
after tax was ($0.4m).
• The Group continued to strengthen its Balance Sheet with the repayment of over $1.3m in
debt principal throughout the period.

These results continue to demonstrate the strong progress Savor is making to optimize business
performance through sustained cost control. As mentioned at the Company’s recent Annual
Shareholders Meeting (ASM), labour and cost of goods sold are the Group’s most significant costs.
Labour costs have continued to track down by approximately 2% of sales compared to the prior
year, as the efficiencies of rostering and headcount reductions have outperformed expectations
during the winter trading period.

Cost of goods sold for the period was a pleasing result, down 0.5% over the same period as a
percentage of sales and ahead of the Group’s long run target. Again, this is a significant result given
the high cost pressures throughout the New Zealand economy. Savor continues to streamline its
supplier base, seeking efficiencies through process as well as volume driven pricing and own brand
products.

Group revenue for the period has increased significantly again compared to the prior period,
however has been impacted by fluctuating weather, macro-economic headwinds, and cost of living
pressures.

Lucien Law, Group CEO, says “We are pleased to have achieved $3.1m of EBITDA and in excess of
$2.5m of operating cash flows for the six months, despite relatively difficult market conditions and
with adverse weather negatively impacting trading, as tight cost control measures take effect.”


*EBITDA means reported earnings before interest, tax, depreciation, amortisation and restructuring
costs, as reported in the Group’s Statement of Comprehensive Income.


-ENDS-

Investor Enquiries
Tim Peat
CFO, Savor
Mobile: 021 049 7442
Email: tim@savor.co.nz


About Savor
Savor, established in 2011, is one of New Zealand’s largest hospitality businesses with 20 iconic
venues in Auckland, including Amano, Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo
Pizza, each with its own unique concept, culture and offering. In 2022, Savor opened Bivacco in
Auckland’s Viaduct Harbour and brought iconic Melbourne concept MoVida to Britomart’s Seafarers
Building. Savor has a reputation for originality, the quality of its products and the high standard of
service that is consistent across the company portfolio.

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Interim financial statements
for the period ended 30 September 2023
LIMITED

In this report
01
Director's Report
02
Consolidated Statement of
Comprehensive Income
03
Consolidated Statement of
Movements in Equity
04
Consolidated Balance Sheet
05
Consolidated Statement of
Cash Flows
06
Notes to the Financial
Statements
09
Corporate Directory

Director's Report
The Board of Directors has pleasure
in presenting the interim financial
statements for Savor Limited for the
period ended 30 September 2023.
The interim financial statements presented
are signed for and on behalf of the Board
of Directors and were authorised for issue
on 28 November 2023.
Paul Robinson
Executive Chair
Bhupen Master
Director
1
Savor Group 2023 Interim Financial Statements

Notes
Six months
Sept 2023
$000's
Unaudited
Six months
Sept 2022
$000's
Unaudited
Year ended
March 2023
$000's
Audited
Revenue29,075 20,703 52,378
Expenses:
Direct costs(8,612)(6,241)(16,067)
Employee costs(13,732)(10,287)(24,553)
Marketing costs(247)(95)(294)
Utilities and operational expenses(2,236)(1,548)(3,736)
Other expenses(1,106)(1,182)(2,508)
Other income- -
3,142 1,350 5,220
Depreciation and amortisation(2,547)(2,270)(4,617)
Restructuring costs3(309)(475)(1,395)
Interest expense(707)(737)(1,542)
Loss before income tax(421)(2,132)(2,334)
Taxation expense- - -
Loss attributable to the shareholders(421)(2,132)(2,334)
Other comprehensive income and expenses- - -
Total comprehensive loss(421)(2,132)(2,334)
Basic and diluted losses per share (cents)(0.6)(3.3)(3.5)
Weighted average number of shares outstanding
(thousands of shares)
Basic and diluted 74,638 65,017 66,602
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement of
Comprehensive Income
For the six months ended 30 September 2023
2
Savor Group 2023 Interim Financial Statements
Financial Statements

Notes
Share capital
$000's
Accumulated
losses
$000's
Share-based
payments reserve
$000's
Total equity
$000's
Total equity at 1 April 202253,905 (39,706)151 14,350
Total comprehensive loss for the period - (2,132) - (2,126)
Issue of new shares 2,099 - - 2,099
Total equity at 30 September 2022
(unaudited)
56,004 (41,848)151 14,323
Total equity at 1 April 202253,905 (39,706)151 14,350
Total comprehensive loss for the period - (2,334) - (2,334)
Issue of new shares5,309 - - 5,309
Total equity at 31 March 2023 (audited)59,214 (42,040)151 17,325
Total equity at 1 April 202359,214 (42,040)151 17,325
Total comprehensive loss for the period - (421) - (421)
Issue of new shares - - - -
Total equity at 30 September 2023
(unaudited)
59,214 (42,461)151 16,904
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement of
Movements in Equity
For the six months ended 30 September 2023
3
Savor Group 2023 Interim Financial Statements
Financial Statements

Notes
Sept 2023
$000's
Unaudited
Sept 2022
$000's
Unaudited
March 2023
$000's
Audited
Assets
Current assets:
Trade and other financial receivables991 851 751
Inventories891 669 1,025
Total current assets1,882 1,426 1,776
Non-current assets:
Property, plant and equipment12,645 13,335 13,313
Intangible assets5 25,389 25,224 25,416
Right of use asset16,781 14,868 15,900
Total non-current assets54,815 53,427 54,629
Total assets56,697 54,853 56,405
Liabilities
Current liabilities:
Bank overdraft1,835 94 514
Trade and other payables8,333 7,371 8,317
Lease liability2,969 2,445 2,964
Borrowings6,648 3,671 3,004
Deferred consideration payable - 1,400 -
Related party payables - - -
Total current liabilities19,785 14,887 14,799
Non-current liabilities:
Trade and other payables953 1,197 1,217
Lease liability15,715 14,092 14,719
Borrowings3,340 10,010 8,346
Deferred consideration payable - 350 -
Total non-current liabilities20,008 25,649 24,282
Total liabilities39,793 40,536 39,081
Equity
Share capital59,214 56,004 59,214
Reserves(42,310)(41,687)(41,890)
Total equity 16,904 14,317 17,324
Total liabilities and equity56,697 54,853 56,405
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated
Balance Sheet
As at 30 September 2023
4
Savor Group 2023 Interim Financial Statements
Financial Statements

Six months
Sept 2023
$000's
Unaudited
Six months
Sept 2022
$000's
Unaudited
Year ended
March 2023
$000's
Audited
Cash flow from operating activities
Receipts from customers28,839 20,438 52,209
Payments to suppliers, employees and other(26,303)(18,796)(46,142)
Net cash from operating activities2,536 1,642 6,067
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets(308)(2,367)(4,271)
Payments for venue development costs(69)(212)(569)
Repayment of related party payable- (112)(112)
Repayment of deferred consideration- (1,100)(2,850)
Net cash used in investing activities(377)(3,791)(7,802)
Cash flow from financing activities
Interest paid(704)(737)(1,542)
Borrowings drawn down- 1,575 1,575
Repayment of borrowings(1,362)(1,320)(3,651)
Lease liability principal repayment(1,424)(1,462)(2,450)
Supplier loan funds received10 730 1,010
Transaction costs from issue of shares- (21)(133)
Issue of shares- 1,940 5,062
Net cash from financing activities(3,480)705 (129)
Net movement in cash held(1,321)(1,444)(1,864)
Add: opening cash(514)1,350 1,350
Closing cash(1,835)(94)(514)
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement
of Cash Flows
For the six months ended 30 September 2023
5
Savor Group 2023 Interim Financial Statements
Financial Statements

1. Basis of presentation
Savor Limited (‘the Parent’ or ‘Company’) and its
subsidiaries (together ‘the Group’) operate in the
hospitality sector, operating a number of premium
restaurants and bars. The address of its registered office is
Level 4, Seafarers Building, 114 Quay Street, Auckland, 1142.
The condensed consolidated interim financial statements
presented are those of Savor Limited and its subsidiaries
(the "Group"). Savor Limited is a company domiciled in New
Zealand, registered under the Companies Act 1993 and
is a Financial Markets Conduct Act 2013 reporting entity.
These interim financial statements have been prepared in
accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP) and the requirements of the
Financial Markets Conduct Act 2013. For the purposes
of complying with NZ GAAP the Group is a for-profit
entity. The condensed consolidated financial statements
of the Group comply with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS).
They also comply with International Financial Reporting
Standards (IFRS). The interim financial statements are
presented in New Zealand dollars. They comply with NZ
IAS 34 Interim Financial Reporting and should be read
in conjunction with the 31 March 2023 annual report
available on the Group website at www.savor.co.nz.
The accounting policies used to prepare these interim
financial statements are consistent with the preparation
of the Group's latest annual report.
2. Key estimates and judgements
The Group has undertaken a number of key estimates and
judgements when preparing these financial statements,
the details of which are outlined in this note. These
judgements have been formed using historical information
and comparatives where available, and management's best
judgement where there is no appropriate comparison. The
Group continues to review all significant estimates along
with the assumptions used and recognises any adjustments
to these in the period in which a change occurs. The key
estimates and judgements are disclosed in the Group's
most recent annual report.
3. Restructuring and other costs
Restructuring and other costs occur outside the normal
course of operating the venues on a day to day basis, and
are unrelated to the Group's trading operations. These
have been separated out on the face of the Statement
of Comprehensive Income to allow the reader of these
financial statements to understand the day to day
operations for the year without the impact of these items.
These items typically include the impairment or disposal
of assets, costs related to restructuring or M&A activity,
venue development or other costs that are unrelated to the
Group's day to day trading operations.
Six months
Sept 2023
$000's
Six months
Sept 2022
$000's
Year ended
March 2023
$000's
Acquisition costs (73)(20)7
Restructuring costs(167)(242)(100)
Loss on disposal of
fixed assets
- - (10)
Venue development
expenses
(69)(212)(583)
Recruitment costs - - (454)
Other costs - - (255)
(309)(474)(1,395)
4. Intangible asset impairment
The Group performed its annual impairment testing of
goodwill at 31 March 2023. Management has reconsidered
the assumptions of the impairment tests in light of the
results for the six months and are satisfied that there is
no indication of an impairment that would require a more
comprehensive impairment assessment at this time.
Notes to the Interim Financial Statements
6
Savor Group 2023 Interim Financial Statements
Financial Statements

5. Segmental information
Segmental information is presented in respect of the
Group’s industry segments as all of the Group's operations
are in New Zealand.
Six months
Sept 2023
$000's
Six months
Sept 2022
$000's
Year ended
March 2023
$000's
Revenue
Hospitality 29,075 20,703 52,378
Corporate - - -
Total 29,075 20,703 52,378
EBITDA*
Hospitality 4,372 2,556 7,868
Corporate (1,230) (1,206) (2,648)
Total 3,142 1,350 5,220
* EBITDA means earnings before interest, tax, depreciation, amortisation,
and restructuring and other costs as disclosed in the Statement of
Comprehensive Income.
Depreciation and amortisation
Hospitality (2,547) (2,270) (4,617)
Corporate - - -
Total (2,547) (2,270) (4,617)
Capital expenditure
Hospitality (308) (2,579) (4,271)
Corporate - - -
Total (308) (2,579) (4,271)
Non-current assets
Hospitality 54,815 53,286 54,629
Corporate - - -
Total 54,815 53,286 54,629
6. Reconciliation of net earnings to net cash
from operating activities
Six months
Sept 2023
$000's
Six months
Sept 2022
$000's
Year ended
March 2023
$000's
Net loss after tax(421)(2,132)(2,334)
Add back:
Interest paid707 737 1,542
Venue development
costs expensed
69 212 582
Add/(Less) non-cash items:
Depreciation and
amortisation
2,5472,2704,617
Supplier loan income
recognised
(277)(159)(485)
Loss on disposal of fixed
assets
- - 10
Restructuring costs - - 155
Movements in working capital:
Trade and other
receivables
(236)(264)(165)
Inventories134 (49)(404)
Trade and other payables13 1,027 2,549
Net cash from operating
activities
2,536 1,642 6,067
7. Subsequent events
On 12 October 2023 and 16 October 2023 the Group
issued further shares of 1.9m and 1m respectively at
a weighted average share price of $0.2722. The cash
proceeds totalled $770,000 with a further $30,000 issued
for Ryan Davis' directors fees during the year.
7
Savor Group 2023 Interim Financial Statements
Financial Statements

Corporate
Directory
Directors
Paul Robinson
Executive Chair
Lucien Law
Executive Director & CEO
Louise Alexander
Independent Director
Bhupen Master
Independent Director
(appointed 1 September 2023)
Ryan Davis
Independent Director
(resigned 20 September 2023)
Financial Calendar
Interim results announced: November
End of financial year: 31 March
Annual Report published: May
Registered Office and
address for service
Level 4, Seafarers Building, 114 Quay
Street, Auckland, 1010, New Zealand
contact@savor.co.nz
Auditor
EY
Banker
Kiwibank
Lawyers
Chapman Tripp
Company Publications
The Company informs investors of
the Group’s business and operations
by publishing an Annual Report and
regular trading updates.
Share register and
shareholder enquiries
Shareholders with enquiries about
transactions or changes of address
should contact the share register.
Link Market Services Limited
Level 30, PwC Tower, 15 Customs
Street West, Auckland, PO Box 91976,
Auckland 1142
Phone: +64 9 375 5998
Fax: +64 9 375 5990
Other questions should be directed to
the Company at the registered address.
NZX Quotation
The Company’s shares trade on the
NZX Main Board financial products
market operated by NZX Limited under
the code SVR.
9
Savor Group 2023 Interim Financial Statements
Corporate Directory

New Zealand's premier hospitality group
GROUP