2019 Annual Report
EXECUTIVE CHAIRMAN’S REPORT
Cooks has over the last year continued to make progress putting its operations on a long-term footing. We have delivered strong growth in our global coffee operations; however, the gains have been diluted by restructuring initiatives and changes in reporting standards as we drive towards positive cashflow and earnings.
Revenue for the 12 months to 31 March 2019 fell 11.8% to $5.9 million from $6.7 million in the same period a year ago. Revenue was supported by a 10.9% increase in constant currency sales from the global coffee store network to $49.3 million from $44.5 million in the same period a year ago as store numbers expanded from 93 to 117.
The gains were offset by restructuring initiatives aimed at building growth momentum, including changes to the structuring of royalty programmes in the United Kingdom. The gains were also masked by new accounting standards that require Cooks to recognise revenue from new franchise agreements across the life of the agreement rather than in the year they are received. The 2018 financial year’s figures have not been restated to reflect these changes.