2017 Annual Report
REAPING THE REWARDS OF TRANSFORMATION
“THE INTRODUCTION OF NEW STORE FORMATS, THE CLOSURE OF UNDERPERFORMING STORES, COUPLED WITH NEW STORE OPENINGS AROUND THE WORLD ARE DRIVING IMPROVEMENTS IN RECURRING REVENUES.”
Cooks Global Foods is reaping the rewards of the significant reorganisation undertaken over the last three years and the ongoing strong demand we see for artisan-style Fairtrade and Organic branded coffee outlets around the world.
In the year to 31 March 2017, despite significant foreign currency headwinds, we held operating losses at our core Esquires Coffee operations to a similar level to prior year. The introduction of new store formats, which reflect our key brand values, the closure of underperforming stores, coupled with new store openings around the world are driving improvements in constant-currency recurring revenues including franchise fees, royalty payments, beverage supply sales and design and technical service fees.
These changes coupled with a re-organisation of our operations in China and the expected expansion of the global coffee store network to 140 stores by the end of the 2018 financial year, give us confidence that we will achieve our target of transitioning to cashflow breakeven for our continuing operations in FY18.