Food Concepts Plc the owner of brands like Chicken Republic and the Chop Box has reported a 18% growth in revenue to N66 billion (USD102.3 million) for the year ended 31 December 2023 even as the Nigerian quick service restaurant (QSR) industry, battles with cost pressures from inflation.
Given the challenging operating environment, the group has scaled down on aggressive store expansion, with plans to roll out only six outlets by year end 2024.
Nonetheless, the firm has about 299 existing stores with a wide footprint across 25 states in Nigeria, and geographical diversification through its Ghana business with its well-recognised QSR brands.
Additionally, the Food Concepts strategy on affordable product offerings continues to appeal to the market amid the rising inflation and lower disposable income of buyers, particularly within the mid to mass market segment.
Despite its market presence, earnings have been negatively impacted by the higher inputs and energy costs as EBITDA margin declined further to 8% for 2023.
The group maintains a conservative funding profile with total debt reducing to N4.1 billion in June 2024 from N6.2 billion in December 2023 following scheduled repayments on maturing obligations from internal cash flows.
Cash holdings were N2.2 billion as of June 2024.
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