The Restaurant Group (TRG) has reported that total sales in the first half of the year rose by 10% to £467.4m, compared with £423.4m the prior year.
Its adjusted EBITDA was also up 15% to £36.3m on a pre-IFRS 16 basis versus the VAT adjusted basis of £31.4m in H1 2022.
The group said that its strong LFL sales and Adjusted EBITDA growth was driven by Wagamama, pubs and concessions
Additionally, its adjusted profit before tax of £7.2m on a pre-IFRS 16 basis, has been well ahead of the VAT adjusted comparable loss of £0.1m in H1 2022.
Wagamama delivered LFL sales growth of 9% in Q2 & Q3 to date, representing a 2% outperformance versus the market.
While its pubs business delivered LFL sales growth of 10% in Q2 and Q3 to date, representing a 1% outperformance versus the market.
TRG said that its concessions business in 2023 exceeded management’s expectations with LFL sales growth of 27% in Q2 and Q3 to date versus 2022, which is an outperformance to the market of 12%.
However, leisure business sales declined by 2%. TRG stated that its leisure business has been most impacted because of the current cost-of-living pressures.
In response to these ongoing challenges the business has accelerated the rationalisation of the trading estate from 116 at FY22 year-end to an expected 76 sites at FY 23 year-end.
Looking ahead, the group’s FY23 costs in line with previous expectations. It also expects to see a moderate increase in its FY23 adjusted EBITDA.
Lastly, it expects its FY23 net debt to be between £180m and £190m.
Andy Hornby, chief executive officer, said: “We are encouraged by the significant progress made in the first eight months of the year, delivering strong LFL sales growth despite the consumer backdrop. In light of the strong trading we are increasing our expectations for FY23 adjusted EBITDA.
“We are making excellent progress on our medium-term plan and the Board continues to actively explore strategic options to further accelerate margin accretion and deleveraging. A massive thanks to each and everyone of our dedicated team members who have worked so hard to deliver these excellent results.”
