Nando's losses widen after 'most challenging year in its history'

29 November 2021 by
Nando's losses widen after 'most challenging year in its history'

The chief executive of Nando's has said the chicken chain faced the most challenging period in its 34-year history during lockdown.

Rob Papps said the group had avoided making any redundancies or permanently closing any UK restaurants and was now "well placed" for the future.

Accounts filed with Companies House showed Nando's Group Holdings, which includes its UK operation, saw pre-tax losses widen to £241.8m in the financial year to February 2021, compared to a loss of £99.4m in the previous 12 months.

Revenue dropped 39% to £665m and the company almost halved its capital investment from £97.4m to £54.2m in a bid to save money.

In September 2020 Nando's raised £100m in equity from its parent company, reduced salaries for senior management and agreed rent reductions and a waiver on its bank covenants to secure its future.

Papps said: "The 2021 financial year was the most challenging in Nando's history as a result of the Covid-19 pandemic. Against this difficult backdrop, I am incredibly proud of the way Nando's has responded; with a clear focus on our people and supporting our communities.

"I am particularly pleased that we succeeded in avoiding redundancies at our UK restaurants and avoiding any permanent closures.

"Looking ahead, the Nando's brand remains very well placed, underpinned by our delicious peri-peri chicken, continued menu innovation, our focus on social impact and our investment in delivery, loyalty and customer technology which is making it easier for more people to eat Nando's."

During lockdown in the UK, Nando's donated 180,000 free meals, including 55,000 to frontline NHS workers.

The number of company-owned and franchised Nando's restaurants worldwide decreased from 958 to 913 in the year to February 2021 due to closures in Canada and Australia.

Image: Willy Barton / Shutterstock

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