OREANDA-NEWS. September 14, 2011. OJSC Rosinter Restaurants Holding (Rosinter), the leading casual dining restaurants chain in Russia and CIS (RTS and MICEX ticker: ROST), announces its financial results for first half of 2011 prepared in accordance with IFRS, reported the press-centre of Rosinter.

The Company’s unaudited interim condensed consolidated financial statements for first half of 2011 reviewed by independent auditor are posted on our web page at www.rosinter.com.

FIRST HALF 2011 HIGHLIGHTS
 
Consolidated Net Revenue increased by 8.0% vs. 1H 2010 to RUB 5,069 mln

Gross profit amounted to RUB 908.2 mln, for a gross margin of 17.9% vs. 23.7% in 1H 2010

Operating losses amounted to RUB 263.9 mln vs. operating profit of RUB 292.9 mln in 1H 2010

EBITDA[1] amounted to minus RUB 57.2 mln vs. RUB 490.9 mln in 1H 2010

EBITDA before Impairment provisions amounted to RUB 133.9 mln vs. RUB 486.5 mln in 1H 2010

Net loss (including impairments) amounted to RUB 321.5 mln vs. Net profit of RUB 111.1 mln in 1H 2010

Net debt increased by 6.5% to RUB 1,219 mln with Net debt/EBITDA (12M Rolling) of 2.5x reflecting EBITDA contraction in 1H 2011

Hugh Carroll, acting President and CEO, commented:
“In first half of 2011 consolidated revenue of Rosinter increased by 8.0% as compared to the same period of prior year and amounted to 5,069 million rubles. This was driven by 4.3% growth of sales in comparable stores and an increased contribution of recently opened restaurants. Same store sales growth was influenced by price increases. Our new pricing policy and cost control actions resulted in a reduction of food and beverage, payroll and SG&A expenses in 2Q 2011 as compared to the first quarter of the year. Gross profit margin increased to 18.6% in second quarter as compared to 17.2% in first quarter of 2011. At the same time a number of restaurants were still performing below expectations and in accordance with IFRS regulations we accrued one-off provision for impairment of their assets in the amount of 191 million rubles. This resulted in EBITDA contraction and net losses of 321 million rubles in first half of the year.

During first half of 2011 we opened 25 new restaurants, including 11 corporate and 14 franchise. Total restaurant count increased to 378 from 362 stores reflecting planned closure of 9 outlets. In 2011 we also expanded our geographical coverage to Azerbaijan and Irkutsk, and Rosinter restaurants now operate in 43 cities in 10 countries. Going forward we will continue our strategy of selecting top-quality locations for the corporate network while keeping up our pace of franchise expansion with wide geographical coverage.

Our efforts will focus on core brands revitalization, optimizing organizational processes and delivering high quality guest experiences. By end year we will introduce new seasonal promo menus with active advertising campaigns that would support traffic recovery and allow us to benefit on market opportunities.”