Azzurri Group, a leading name in the UK's dining scene, has proudly announced a significant uplift in its financial performance for the fiscal year ending June 30, 2023. The group, behind the popular Ask Italian, Zizzi, and Coco di Mama brands, operates approximately 220 locations across the UK. This year, they've reported a 9% increase in total revenue, jumping from £235.9 million to £258 million.
Despite a notable decrease in EBITDA from £25 million to £14.3 million, a 43% drop, this figure is somewhat misleading at first glance - a one-time VAT benefit of £13.2 million inflated last year's numbers. When adjusted for this, the current EBITDA represents a 21% increase, underscoring a true financial enhancement.
This achievement stems from the stellar performance of all three brand sectors, which have seen significant like-for-like revenue growth and increased spending per head. Azzurri attributes this success to effective cost management strategies amidst rising inflation, innovative menu developments, and fruitful partnerships with suppliers, which have restored margins to pre-pandemic levels.
Stephen Holmes, CEO of Azzurri Group, credits this year's success to several key factors:
- Continual investment in their restaurants and stores
- The adoption of sector-leading technology
- The transformation of Coco di Mama into a national delivery brand
- Unwavering dedication to efficiency and value
Above all, Holmes highlights their teams' commitment and hard work as the driving force behind these achievements.
The announcement amidst news of potential business auctions by Azzurri's parent company, Towerbrook Capital Partners. However, Azzurri looks forward to a bright future, expecting strong revenue growth and a robust EBITDA margin in the upcoming year. This optimism is bolstered by the recent acquisition of Boojum, a fast-casual Mexican chain from Ireland, marking a strategic expansion with its first UK site opening in Leeds this April.
Holmes concludes with a forward-looking perspective, emphasising the solid start for the current year, highlighted by a successful Christmas season. Azzurri remains focused on growth opportunities for Zizzi, ASK, and Coco, alongside the exciting development of their new Mexican venture, Boojum.
We welcome your thoughts and comments below on Azzurri Group's strategic advancements and financial performance.