The company is also looking to reduce costs to improve their financial outlook.
Oliver’s Real Food has released their trading update and revised FY19 earnings guidance, commenting that the sales revenue for the first half was “lower than the Company’s internal forecast”.
The healthy fast food chain's cash receipts in H1 were at AU$17.74 million. The results were attributed to factors such as the ongoing economic uncertainty, roadworks and diversions at their flagship stores, "unexpected" landlord delays in opening the Coff Harbour store and several underperforming outlets.
The directors of the company now expect sales revenue of FY19 to be in between AU$34 million to AU$38 million as well as EBITDA loss to be at AU$1 million to AU$4 million.
“Although the Directors are very disappointed with the Company’s performance, we believe that the operational and organisational changes that are being rapidly implemented will improve performance at all levels of Oliver’s operational footprint. We must allow time to realise the benefits of the changes over the coming months and for these to flow through performance and profitability,” Mark Richardson, chairman of Oliver’s, said.
Oliver's expects to have approximately AU$1 million in cost savings for H2. Initiatives to reach these saving include a review of staffing costs, operational cost reductions, restructure of support functions and store closures.
“The Oliver’s brand is young and still offers incredible potential,” Oliver’s CEO Greg Madigan said. “If we continue our consolidation, improving the current portfolio and resolving sales and profitability challenges in subdued trading conditions, we will be in an incredibly strong position to move forward and expand, realising the potential we all know the brand possess.”
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