OREANDA-NEWS. December 29, 2012. OJSC Rosinter Restaurants Holding (Rosinter), the leading casual dining restaurants chain in Russia and CIS (Moscow Exchange MICEX-RTS ticker: ROST), announced its financial results for 9M 2012 prepared in accordance with IFRS.

9M 2012 HIGHLIGHTS

• Consolidated net revenue increased by 3.6% compared with 9M 2011 and stood at RUB 7,861 mln.

• Same store sales declined 1.6% during 9M 2012 as a result of a 2.4% increase in same store average check and a 4.0% decline in same store transactions.

• Operating profit before impairment amounted to RUB 253 mln for an operating margin before impairment of 3.2% compared with a margin of 0.4% in 9M 2011.

• EBITDA[1] before impairment and write-offs amounted to RUB 582 mln for a margin of 7.4% compared with a margin of 5.7% in 9M 2011.

• EBITDA[1] amounted to RUB 385 mln and EBITDA margin stood at 4.9% compared with a margin of 1.8% in 9M 2011.

• Net loss amounted to RUB 92 mln and net loss margin stood at 1.2% compared with a net loss margin of 3.6% in 9M 2011.

• Gross debt was RUB 1,369 mln, including RUB 503 mln long-term debt which represents 36.7% of total gross debt.

• Net debt decreased by 16.0% to RUB 1,064 mln, leading to a Net debt/EBITDA of 1.8x as at September 30, 2012 in comparison with 3.8x as at December 31, 2011.

Kevin Todd, President and Chief Executive Officer, commented:

“Our nine month 2012 financial performance is in line with our expectation and reflects the consequences of a slow traffic flow dynamic that our new team has been addressing with a phased strategy since July this year.

This occasion is a good opportunity for me to provide an update on two of our most critical strategic priorities: Brand revitalization for IL Patio and Planet Sushi, our two proprietary core brands, and the reorganization of our overhead or support team as we prefer to call it.

The IL Patio and Planet Sushi brand revitalization projects are building momentum supported by an intensive short-term marketing plan that targets transaction growth. New enhanced menus, the initial step of the menu revitalization project, have already been launched for both brands and the test store for the IL Patio Genesis concept, a holistic refresh for restaurants, will open this month while the Planet Sushi Genesis concept is planned to open early 2Q 2013. Also, the Next Generation concepts for IL Patio and Planet Sushi, a major repositioning of the brands with a 10 years horizon, have made good progress and their tests stores are planned to open around mid 1H 2013.

We are looking forward to the initial results of the test stores, both for the Genesis and Next Generation stores, to refine the concepts for commercial rollout during 2H 2013. We target restaurant concepts that are compelling for our guests and that also have an appropriate level of return on investment.

On the organizational front, we have already released two of the growth blockages highlighted in our thorough review of the business by closing the brands/operations gap and by launching the new franchise support organization, and our current focus is to consolidate this cultural change within the organization during 2013 in order to achieve its full benefit in 2014. Also, we have completed the first step of our overhead reorganization that targets a more effective and lower cost support team.

look forward to our next communication early February 2013 when we will provide our trade update for last quarter 2012 and hold a conference call for a business update and guidance for 2013. Meanwhile, on behalf of the Rosinter team let me wish all of you a very happy holiday season“.