NoHo Partners’ strategy and financial targets: seeking controlled growth and improved profitability in the strategy period 2022–2024
The company’s vision is to be the leading restaurant company in Northern Europe. According to its values, the company focuses on entrepreneurship, quality, people, profitability and responsibility. The company will publish an ESG report on its operating principles on the basis of its values in 2022.
The Group’s long-term financial targets for the strategy period 2022–2024 were published on 11 June 2021.
The financial targets for the strategy period 2022–2024:
• The Group aims to achieve a turnover of approximately MEUR 400 and an EBIT margin of approximately 10 per cent during 2024.
• At the same time, the aim of the company is for the ratio of net debt to operating cash flow, adjusted for IFRS 16 lease liability, to be under 3.
• The objective of the company is to pay dividends during the strategy period.
The Group’s updated strategy focuses on:
• Profitable growth in the Norwegian restaurant market through acquisitions
• Scaling up the Friends & Brgrs chain to a national level
• Large and profitable urban projects
• Continuation of the cost-saving programme
• Operational efficiency improvement
• Portfolio development
• Implementation of the development programmes in Denmark
• Strong future operating cash flow
• Gradual divestment of Eezy Plc
• Use of treasury shares in acquisitions
According to a management estimate published on 11 June 2021, the turnover of NoHo Partners Group in 2022 will be approximately MEUR 280 with the current units and approximately MEUR 400 as a whole in 2024. It is estimated that approximately MEUR 50 of the expected growth of approximately MEUR 120 will come from Norway, approximately MEUR 30 from the scaling of Friends & Brgrs business operations, approximately MEUR 30 from large and profitable urban projects and approximately MEUR 10 from the Group’s other businesses.
New profit guidance for 2021:
NoHo Partners estimates that, in the final quarter of 2021, the Group will achieve a total turnover of less than MEUR 70 and the turnover for the full financial year 2021 will amount to approximately MEUR 185.
The Group’s operating cash flow is estimated to be more than MEUR 8 in the positive in the final quarter of 2021 and more than MEUR 10 in the positive for the full financial year 2021.
NoHo Partners will update its guidance for 2022 in connection with the financial statements release for 2021.
Previous profit guidance (published on 9 November 2021):
NoHo Partners estimates that, in the final quarter of 2021, the Group will achieve a total turnover of approximately MEUR 70 and the turnover for the full financial year 2021 will amount to approximately MEUR 190.
The Group’s operating cash flow is estimated to be more than MEUR 10 in the positive in the final quarter of 2021 and approximately MEUR 12 in the positive for the full financial year 2021.
The vision is to be the leading restaurant company in Northern Europe.
Our operations and decisions are steered by our entrepreneurship, people, quality, profitability and responsibility.