Quarterly Update

COOKS EXPANDS
ESQUIRES EUROPEAN
BUSINESS
STRONG GROWTH IN THE UK AND IRELAND CONTINUES
AS NEW STORES IN PORTUGAL AND ROMANIA ARE SET
TO ASSIST GROWTH. CONSOLIDATION OF OPERATIONS IN
CHINA AND THE MIDDLE EAST CONTINUES.
Cooks Global Foods (NZAX.CGF) today reports continued strong growth
in constant currency
1
quarterly sales across its global Esquires Coffee store
network, with the ongoing store refurbishment programme underpinning
performance.
Constant currency network store sales - a leading indicator of the revenue
Cooks expects to generate from design fees for new and refurbished stores
and recurring revenues, such as royalties, coffee product and other retail sales,
were $11.0 million in the three months to 31 December 2017.
The result represents an 8.1% increase on the same period a year ago, and is a
record quarterly result for the group.
COOKS GLOBAL FOODS
THIRD QUARTER 2018
OPERATING METRICS
GROUP TARGETS
NZAX & MEDIA RELEASE FEBRUARY 2018
KEITH JACKSON
Executive Chairman
“In the last three months, our UK and Irish operations, which
generate more than 70% of total constant currency network
sales have performed very well and are continuing to grow
strongly. The uplift reflects the opening of new stores and
the ongoing refurbishment and rebranding campaign,
which is also underpinning transaction volumes and
average transaction values across the global network.
“We have also seen continued consolidation in key
territories such as China and the Middle East, both of which
are transitioning to new ownership arrangements.” says
Cooks Executive Chairman Keith Jackson.
“We opened a total of eight new stores across both
territories in the past 12 months, but these gains have been
diluted by the closure of a total of 14 underperforming
stores.
“At the end of the quarter we launched a new store in Porto,
Portugal and two stores in Bucharest, Romania. These
European bases represent beachheads for Esquires from
which we expect to take advantage of the strong potential
we see for artisan, Organic and Fairtrade cafes in the
With the delay of the restructure of the China business, as
flagged last year, and the closure of stores that are deemed
non-strategic for the new China business, the target of
140 stores for the group by the end of the financial year is
under pressure.
While Cooks currently expects to have around 100 stores
across its existing network by the end of the financial year,
the higher figure remains possible based on discussions
with a number of potential partners that could deliver
additional stores to the network.
However, with less than two months before the year end,
Cooks expects these additional stores would more likely be
delivered during the first half of the next financial year.
Meanwhile, delays in the China restructure and significantly
growing our network store numbers will likely mean the
transition to breakeven for the group will occur during the
first six months of the new financial year.
Mr Jackson said: “The delays in both China and the
discussions with potential new business partners are only
timing issues. We are confident that we are putting in place
a structure that will allow Esquires Coffee to thrive over
region. Indeed, the number of European coffee shops grew
by 7.7% in 2017, while Romania was the fastest growing area
in the EU, with the number of outlets rising by 30%
2
. ”
The same-store results for the period showed similar
improvements. Constant currency same store sales
increased 2.5% to $8.6 million from $8.4 million in the same
three-month period a year ago.
Note 1: Prior year figures are converted at the same exchange rate as current year to eliminate any exchange fluctuation effect. For the definition of all terms please see the last page.
Note 2: Allegra Project Cafe Europe 2018.
Esquires UK - Balham

the medium to long term. We have been encouraged by
the depth of interest we have from partners seeking to
help Cooks accelerate its global growth plans even if these
discussions may not be on the time frame we would prefer.”
REGIONAL PERFORMANCE
The United Kingdom
Ireland
The Middle East
Other territories
China
The UK business, which represented 41.1% of total sales for
the three months to 31 December 2017, continues to lead
performance across the network. The territory benefited
from an increase in store numbers to 34 from 27 at the end
of the same period last year and a growing contribution
from new or refurbished stores.
Over the past 12 months the UK company has opened 9
new stores but has closed two underperforming stores.
Quarterly constant currency store sales in the UK rose 24.1%
in the same period last year.
Same store sales for the quarter increased 3.2% on the
same period a year ago, reflecting improvements in the
Store numbers declined in Ireland to 11 from 12 at the end
of the same period a year ago, but quarterly constant
currency store sales in the territory increased 6.8% for the
same period comparison.
The increase reflects the ongoing success in the territory
of increasing the average spend per customer. Constant
currency same store sales increased 7.8%, due entirely to
the increased spending per customer.
Quarterly constant currency store sales in the Middle East
increased 3.8% on the same period a year ago as the region
benefited from an improving store mix. Over the period the
company closed five underperforming stores but opened
five new stores.
The strong top-line performance was diluted by a weaker
same-store operating performance with same store sales,
transaction volumes and average transaction values all
falling in the territory. This was largely due to some one off
events such as law changes in Kuwait that banned smoking
inside malls and that had an immediate sales impact.
We continue to target completion of the Middle East, North
Africa and West Asia joint venture with our Saudi Arabian
partner Anasia Foods by the end of the 2018 financial year.
Since the end of September, Cooks has established
beachheads in mainland Europe, opening a new store in
Portugal and two stores in Romania. These gains were
assisted by the opening of a new store in Indonesia but
were offset by the closure of a store in Canada.
Cooks is continuing to work with Suzhou Yueying
Enterprise Investment Partnership, to create a new
company to become the master franchisee for the Esquires
Coffee brand in China, Hong Kong, Macau and Taiwan.
Cooks and its partners set 30 September 2017 as the base
date for the commencement of the venture. It entered into
a co-management arrangement from 1 October 2017 and is
sharing operational costs on a 50:50 basis from that date
with its partners until the joint venture agreements are
completed.
We are still targeting 31 March 2018 for completion, but
there are Chinese regulatory processes associated with
setting up the new companies and structures that are
outside our control. With the disruption of Chinese New
Year, the deadline may be pushed out into the new financial
year.
Delays in the completion of this restructure have meant the
existing China operation has continued to impact on the
group’s financial results as a full subsidiary, for longer than
originally forecast.
We have been working closely with our prospective
partner to restructure this business in preparation for the
completion, which has meant closure of stores and staff
redundancies where those stores no longer fit with the
strategy for the new Chinese operation.
No further funds have been invested in China since 30
September 2017, with the joint venture partner providing
funding until completion. Funds that we will owe as part
of this interim arrangement will likely be dealt with by an
adjustment to the proportional ownership structure in the
new business. The final numbers will be determined closer
to the completion date.
Quarterly constant-currency store sales fell 24.8% in the
same period a year ago, reflecting the fall in store numbers
to 20 from 26.
However, the closure of nine underperforming stores lifted
the same store operating performance for the period.
Constant currency same store sales increased 3.9% on the
same period last year.
Liverpool - UK
Porto - Portugal
Hanley - UK
Yate - UKBalham - UK
Porto - Portugal

ESQUIRES COFFEE OPERATING METRICS
TOTAL NETWORK
TOTAL NETWORK
3 MONTHS TO 31 DECEMBER
9 MONTHS TO 31 DECEMBER
STORE NUMBERS
SAME STORE
SAME STORE
2017
2017
2017
2017
2016
2016
2016
2016
Esquires Coffee Store sales
Esquires Coffee Store sales
Esquires Coffee Store sales
Esquires Coffee Store sales
Transactions
Transactions
Transactions
Transactions
Average transaction value
Average transaction value
Average transaction value
Average transaction value
VARIANCE
VARIANCE
VARIANCE
VARIANCE
NZ$10,965,924
NZ$32,239,342
1,149,645
3,436,862
NZ$9.54
NZ$9.38
NZ$10,142,847
NZ$29,218,658
1,126,736
3,261,422
NZ$9.00
NZ$8.96
8.1%
10.3%
2.0%
5.4%
6.0%
4.7%
NZ$8,572,760
NZ$25,619,328
888,507
12,682,193
NZ$9.65
NZ$9.55
NZ$8,359,738
NZ$25,114,144
914,461
2,764,023
NZ$9.14
NZ$9.09
2.5%
2.0%
-2.8%
-3.0%
5.5%
5.1%
Note all the figures in the above table are constant currency with prior year figures converted at the same exchange rate as
current year to eliminate any exchange fluctuation effect.
SEPTEMBER
THREE-MONTH STORE NUMBERS
DECEMBERDECEMBER
China
TOTAL
Ireland
Canada
UK
Middle East
Indonesia
New territories
2017OPENEDCLOSED20162017
211
929
110
30
314
231
3
0
0
3
2
4
0
1
1
0
0
0
20
97
11
2
34
24
3
3
26
94
12
3
27
24
2
0

FOR FURTHER INFORMATION
ABOUT COOKS GLOBAL FOODS
Cooks Global Foods operates in world markets and is listed on the NZAX market operated by NZX Limited
in New Zealand under the code CGF. It owns the intellectual property and master franchising rights to
Esquires Coffee Houses worldwide excluding New Zealand and Australia. Cooks currently operates or
franchises Esquires Coffee in Canada, the United Kingdom, Ireland, Bahrain, Kuwait, Saudi Arabia, UAE,
Indonesia, Portugal, Romania and China.
For more information visit: www.cooksglobalfoods.com
APPENDIX
The following are Non-GAAP reporting metrics which are used in this update:
Network (Store) Sales
Total store sales are the aggregate of sales of all Esquires branded coffee stores, whether franchised or owned, across the company’s global brand network. Cooks derives income
from its franchised stores from franchise related fees, primarily linked to these sales levels as well as store sales for those stores directly owned by the company. Total network store
sales, therefore, have a correlation to the portion of revenue earned by Cooks Global Foods relating to recurring franchise fees. However, they are not and should not be confused
with the revenue of Cooks Global Foods which is reported in its financial statements as the two do not directly correlate.
Same Store Sales
Same store sales are the aggregate of all Esquires-branded coffee stores, whether franchised or owned across the company’s global brand network that have been operational for
at least a full two-year period for the purposes of like-for-like comparison between current and prior periods. The metric measures the improvement in existing store sales within the
brand network, excluding new stores opened in the previous 24 months. Same store sales are not the same as revenue in the financial statements for Cooks Global Foods group, but
can indicate stable revenue growth in the brand network.
Transactions
Transactions relate to the total individual transactions, which occur within Esquires branded coffee stores, whether franchised or owned. A transaction is defined as a single financial
transaction for food, beverage or product that is processed through the point-of-sale system within a coffee store.
Average Transaction Value
Average transaction values are derived by dividing total Esquires coffee store sales by total transactions recorded over the period.
Total (Store) network
All stores whether owned or franchised, which operate under a brand owned by companies within the Cooks Global Foods Group.
INVESTORSMEDIA
+64 21 702 509+64 21 645 643
Executive Chairman
The Project
KEITH JACKSON RICHARD INDER