Despite Increase in Revenue, Loungers Faces Higher Costs and Expenses
Loungers, the renowned operator of cafes, bars, and restaurants trading under the Lounge and Cosy Club brands, has announced a decline in pretax profit for fiscal 2023. The company reported a pretax profit of £7.3 million ($9.4 million) for the year ending April 16, compared to £21.6 million in the previous year. This reduction can be attributed to the rise in costs of sales and administrative expenses incurred, as stated by the company.
Revenue Sees a Steady Rise
Despite the decrease in profit, Loungers experienced a positive outcome in terms of revenue. The company’s revenue rose from £237.3 million to £283.5 million during this period.
Strengthened Sales Performance for Fiscal 2024
Loungers expressed satisfaction with its performance and trajectory over the past 12 weeks since the end of the fiscal year. The company witnessed a 5.7% increase in like-for-like sales during this period. Loungers remains optimistic about its future growth and profitability.
“We have great confidence in the positive momentum displayed throughout the business, as well as our continuous investment in operational enhancements. We believe that this positions us exceptionally well to achieve further growth and profitability in fiscal 2024,” stated the company.