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Burger King widens full-year loss

NZ NewswireNZ Newswire 13/06/2016 Sophie Boot

Blackstone Group's Burger King chain in New Zealand widened its annual loss after taking a charge against its Kiwi Pacific joint venture and incurring higher finance and raw material costs.

The net loss for Tango Holdings NZ widened to $7.6 million in the year to Dec. 31, from $7.5 million a year earlier, accounts filed with the Companies Office show. Revenue rose to $187.3 million, from $177.6 million in 2014.

The 2015 loss is the fourth since Tango was incorporated in October 2011, the month private equity firm Blackstone acquired the burger chain operator, Antares Restaurant Group, from Australian buyout firm Anchorage Capital Partners.

While the burger chain increase sales in the latest year, total expenses were also higher at $191.2 million from $185.9 million and the results include a $529,765 impairment against Kiwi Pacific, its joint venture with Veritas Investments which it is in the process of winding up.

Antares chief executive John Hunter said 2015 had been a strong year, with Burger King increasing its revenue and market share, and the company had a positive outlook.

"We are very satisfied with the strong operating performance made over the past 12 months, and we look forward to making continued progress in 2016/17," Hunter said.

The company had refinanced its external debt since the start of the 2016 financial year, and its leverage now represented less than three times its earnings before interest, tax, depreciation and amortisation (ebitda), he said.

The company had $79.3 million debt in 2015, from $149.2 million a year earlier. Net finance costs rose 2.6 per cent to about $19 million in the latest year.

Burger King has 84 outlets nationwide.

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