Quarterly Update

ESQUIRES UK SIGNS
PARTNERSHIPS TO
DRIVE GROWTH
Cooks Global Foods (NZAX.CGF) today announces Esquires UK has
signed its first regional partnership to accelerate the growth in its largest
market.

It also reports continued strong growth of 21.8% in the UK for the full
year. The UK now generates 39.1% of total sales, underpinning constant
currency quarterly sales across the global Esquires Coffee store network.
The new regional growth partnership in the UK will see a new entity,
Esquires Coffee (South East), take responsibility for growth in South East
England. It is the first of several agreements to help Esquires accelerate
the growth in the business it sees for its unique take on artisanal, Organic
and Fairtrade coffee across the UK.
FOURTH QUARTER 2018 OPERATING STATISTICS
NZAX & MEDIA RELEASE MAY 2018
KEITH JACKSON
Executive Chairman
“The UK continues to demonstrate the strong potential of
Esquires’ artisanal and independent take on café culture.
We believe these new partnerships will help Esquires exploit
this potential and accelerate growth for the benefit of
shareholders and our franchisees,”Executive Chairman Keith
Jackson said.
“Store refurbishments and new store openings have driven
fourth quarter sales in the UK 20.0% higher.”
“Recent new store openings in Portugal, Romania, Jordan
and Pakistan have established Esquires Coffee houses in
new territories where we see strong demand for the brand’s
unique take on third-wave artisanal café culture. Indeed,
demand is so strong now that the new café in Pakistan has
been forced to resort to taking reservations rather than
operating an open door, while it has more than 25,000
followers on its Facebook page,” Mr Jackson said.
Constant currency network store sales were up 3.9% to
$10.3 million in the three months to 31 March 2018. Constant
currency store sales are a leading indicator of the revenue
Cooks expects to generate for new and refurbished stores
and recurring revenues, such as royalties, coffee product
and other retail sales.
On a same store basis, the total network’s constant
currency store sales fell 2.0% to $7.8 million from $8 million
in the same quarter a year ago.
The reorganisation taking place in China and the Middle
East – where Cooks is transitioning the regional operations
to new ownership arrangements – also resulted in store
closures. At the end of March 2018, store numbers fell to 93,
down from 98 at the same time a year ago.
In the 12 months to 31 March 2018, Esquires opened a total
of 18 stores, including 8 in the United Kingdom, 6 in the
Middle East, 3 in Europe and 1 in China. However, these
gains were offset by the closure of 23 stores including 12
stores in China, five stores in the Middle East and a total of
six underperforming stores in other territories.
“The ongoing consolidation of Esquires’ Chinese and Middle
East operations, the effects of the fourth quarter being
one week shorter than the same period a year ago, and
temporary store closures in Ireland as the country endured
the ‘Beast from the East’ winter storm in late February
and early March have diluted the effect of these gains on
quarterly sales.” To show fair comparison, an adjustment to
remove the impact of the extra week of trading in the 2017
financial year is used in this report.
“We had expected to complete the transition of the Chinese
and Middle Eastern operations to new joint ventures by the
end of the financial year. In both territories our partners are
working through complex regulatory processes. Completion
of the Middle East joint venture is now expected within the
first half of the new financial year.
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 of this release.
Karachi - PakistanPutney - UK

“As we mentioned at the end of the third quarter, no further
funds have been invested in China since 30 September
2017, with our China partner providing funding until
completion during a transition period. Funds that we will
owe as part of this interim arrangement will be dealt with
by an adjustment to the proportional ownership structure
in the new business. The final numbers will be determined
prior to the completion of our financial statements for the
2018 financial year.
“The delays in both China and the Middle East and the
discussions with potential new business partners are timing
issues. We have in place a structure that will allow Esquires
Coffee to thrive over the long-term.”
“Finally, we signalled at the end of the third quarter that we
had held discussions with a number of partners that could
propel growth in the store network to above our 100-store,
year-end target. While these discussions are ongoing they
are so far inconclusive.“
The United Kingdom The Middle East
The UK Esquires business continues to lead performance
across the network. Constant currency quarterly sales grew
20.0% to $4.2 million from $3.5 million at the same time
a year ago. The UK benefited from an increase in store
numbers to 35 from 29 at the end of the same period last
year and a growing contribution from new or refurbished
stores. In the three months to 31 March 2018 the UK
business opened one new store.
The Middle East Operation has been bolstered by the
opening of stores in Pakistan, Jordan and Kuwait in the
fourth quarter. Quarterly constant-currency store sales
increased by 5.5% to $2.1 million in the same period a year
ago.
Store numbers in the region increased to 26 from 25 at the
same time last year, with new stores in Pakistan, Jordan and
Kuwait offsetting closures in the UAE and Bahrain. Store
numbers in Saudi Arabia were steady.
Quarterly transaction volumes were steady, but transaction
values rose as the new food program is implemented.
Europe
China
Cooks is for the first time reporting the new territory
of Europe, which covers the new stores in Portugal and
Romania as well as Ireland. Despite the impacts brought
by the ‘Beast from the East’ winter storm, which closed all
Ireland’s stores for two days, but a majority for three days,
constant currency sales were up by 3.5% from $3.0 million
in the same quarter a year ago to $3.1 million. The increase
reflected the contribution from the new stores in Portugal
and Romania and continuing growth in transaction values
at the Irish stores. In the three months to 31 March 2018, the
territory closed a store in Romania that would not easily
transition to the Esquires brand.
Quarterly constant-currency store sales fell 35.6% to $0.81
million from $1.3 million in the same period a year ago,
reflecting the fall in store numbers to 15 from 26. In the
three months to 31 March the Chinese business closed five
stores.
Cooks is continuing to work with our Chinese partners to
create a new company to become the master franchisee for
the Esquires Coffee brand in China, Hong Kong, Macau and
Taiwan.
We have been working closely with our partner to
restructure this business in preparation for the completion
of the new venture, which has meant closure of stores and
staff redundancies, where those stores no longer fit with
the strategy for the new Chinese operation.
Amman - Jordan
QUARTERLY REGIONAL PERFORMANCE
Manchester - UK

ESQUIRES COFFEE OPERATING METRICS
TOTAL NETWORK
TOTAL NETWORK
3 MONTHS TO 31 MARCH
12 MONTHS TO 31 MARCH
STORE NUMBERS
SAME STORE
SAME STORE
2018
2018
2018
2018
2017*
2017*
2017*
2017*
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$10,331,330
NZ$43,106,131
1,066,931
4,499,395
NZ$9.68
NZ$9.58
NZ$9,946,397
NZ$39,656,630
1,077,400
4,338,821
NZ$9.23
NZ$9.14
3.9%
8.7%
-1.0%
3.7%
4.9%
4.8%
NZ$7,821,939
NZ$33,602,282
798,719
3,444,465
NZ$9.79
NZ$9.76
NZ$7,984,328
NZ$33,231,225
855,368
3,586,901
NZ$9.33
NZ$9.26
-2.0%
1.1%
-6.6%
-4.0%
4.9%
5.4%
*The 2017 operational year was 53 weeks. The 53rd week’s sales have been removed so the year is comparable to 2018’s 52-week year.
31 DEC
FOURTH QUARTER STORE CHANGES
31 MAR31 MAR
UK
TOTAL
Canada
Europe
China
Indonesia
Middle East
2017OPENEDCLOSED20172018
341
974
20
140
200
30
243
0
8
0
1
5
1
1
35
93
2
13
15
2
26
29
98
4
11
26
3
25

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, Pakistan, Jordan, 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 related 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