Jul 2013 Financial News

Prestige Holdings profits up 20%

Jul 11, 2013

Prestige Holdings yesterday reported that the profit attributable to its shareholders increased by 20 percent to $18.4 million from $15.3 million for the six month period ending May 31, 2013. The quick service restaurant chain, which holds the franchises for KFC, TGI Friday, Subway and Pizza Hut, said that it increased its group revenue by three per cent to $438 million for the first half of 2013.

It also said that at the beginning of June, Prestige Holdings completed the issue of a new ten-year $140 million bond with a fixed coupon rate of 6.25 per cent. “The proceeds of this bond were used to prepay existing bonds which were at a higher interest rate, settle the balance due to Mainstream Foods for the purchase of Subway assets and liquidation of short term financing. This transaction, including associated costs, will be reflected in the third quarter.”

The report also said: “Despite ongoing labour challenges, as well as continued food cost, inflation driven by commodity prices, and recently imposed higher duties , all of our brands in T&T experienced improved performance. Our two TGI Friday’s restaurants in Jamaica and Barbados continue to perform below expectations and a number of initiatives are being actively pursued to resolve this challenge.”

It further stated that Prestige Holdings brands continues to operate in a highly competitive quick service restaurants (QSR) and casual dining segment but continues to differentiate themselves through innovative product offerings. “We have many exciting new offerings in the second half of the year that we expect will keep our restaurants top of mind for those seeking a great meal and great time.”

Earnings per share were 30 per cent compared with 25 cents for the same period in 2012 and these results were generated from an average number of 108 restaurants.


Source:
Trinidad Guardian
Thursday July 11, 2013

http://www.guardian.co.tt/business/2013-07-11/prestige-holdings-profits-20