Unaudited Preliminary Full Year Result to 31 March 2019

NZAX & Media Release 14 June 2019

PRELIMINARY FINANCIAL RESULTS FOR THE 12 MONTHS TO 31 MARCH 2019
Cooks coffee operations growth sustained amid
reorganisation

SUMMARY
• Esquires store numbers increase to 117 from 93 at the same period a year ago.
• Cooks to migrate to the NZX main board on 24 June 2019
• Cooks continues to drive towards positive cashflow and earnings
• Revenue
1
drops 11.8% to $5.9 million with stronger constant currency global store sales
2

(up 10.9%) offset by the application of new revenue accounting standards and structural
changes in franchises in the UK
• Net loss from continuing operations after tax rises to $4.7 million from $3.9 million
reflecting growth investments, the costs from the proposed acquisition of Mojo and other
one-off charges

Cooks Global Foods (NZAX.CGF) today reports strong growth in its global coffee operations
has been diluted by restructuring initiatives and changes in reporting standards as it drives
towards positive cashflow and earnings.

Revenue
1
for the 12 months to 31 March 2019 fell 11.8% to $5.9 million from $6.7 million in
the same period a year ago. Revenue was supported by a 10.9% increase in constant
currency sales
2
from the global coffee store network to $49.3 million from $44.5 million in the
same period a year ago as store numbers expanded from 93 to 117.

However, these gains were offset by restructuring initiatives aimed at building growth
momentum, including changes to the structuring of royalty programmes in the United
Kingdom. The gains were also masked by new accounting standards that require Cooks to
recognise revenue from new franchise agreements across the life of the agreement rather
than in the year they are received. The 2018 financial year’s figures have not been restated
to reflect these changes.
Net losses before tax from continuing operations increased to $4.7 million from $3.9 million in
the same period a year ago, reflecting lower revenue, costs associated with new initiatives to
drive growth in the UK and Europe, a non-cash share of the Chinese joint venture’s losses
and write off’s associated with the company’s Romanian operations.

Higher finance and legal charges and costs associated with the proposed acquisition of the
Mojo chain of coffee stores towards the end of the half year also weighed on earnings.

Cooks Executive Chairman Keith Jackson said: “During the second half of the year the
company focused on strengthening the core businesses in UK and Ireland, which collectively
generated more than 70% of the group’s total revenue in 2019.

“The UK business was re-organised with a focus on developing regional master franchisees
and the strengthening of operational management. To date two regions have been sold and
the results are beginning to show through with faster growth in the current financial year as
local developers ramp up activity.

“As signalled at the half year, the focus on the core business saw Cooks withdraw from the
external design market and the closure of the Design Environments business. We are now
focussed exclusively on internal design for our own franchised cafes and we are seeing cost
savings from these initiatives flowing through to our results in the current financial year.”

BALANCE SHEET
Cooks fully repaid its debt facilities with ANZ in early April with the majority repaid before 31
March 2019. At the end of the financial year the company had bank debt of $0.15 million down
from $1.2 million at the same time last year.
Borrowings increased to $7.8 million from $4.7 million at the same time a year ago and include
loans from entities associated with Executive Chairman Keith Jackson as well as certain
convertible loan notes. Cooks continues to pursue alternative funding options to better reflect
the appropriate mix of equity and debt requirements for the business.

CHINA BUSINESS CARRYING VALUE
Following discussions with the Financial Markets Authority, Cooks commissioned an
independent valuation of the Chinese coffee joint venture, which valued Cooks’ 21% stake at
between $5.6 million and $6.8 million.

This figure is well in excess of the $2.7 million carrying value in the company’s accounts.
However, the Board resolved not to adjust the value at this time. Further details will be
provided in the full year report.

NZX MIGRATION
Cooks has approval to migrate to the NZX on 24

June 2019. Cooks believes the move will help
to lift its profile and boost liquidity in its shares. The approval follows the appointment of Paul
Elliot to the board as an independent non-executive director.

OUTLOOK
Mr Jackson said directors are confident about the prospects for the business in the year
ahead.

“Cooks continues to make progress putting its operations on a long-term footing. Recent
restructuring initiatives began to deliver real benefits in the second half of the 2019 financial
year and are continuing into the new financial year. We expect these improvements to see
momentum build and drive Cooks towards generating positive cash flow and earnings.”

BUSINESS PERFORMANCE

THE UNITED KINGDOM
UK store numbers increased to 41 at the end of March up from 35 at the same time a year
ago. Meanwhile, constant currency coffee store sales for the year increased 17% to $20.6
million from $17.6 million in the same period a year ago. The region also saw a 10% increase
in transaction volumes and a 7% increase in average transaction values.

The UK business has a new strategy to establish regional franchises and as part of this, it has
restructured the regional franchise fee and royalty schedule to better incentivise franchisees.

This change – coupled with the change in accounting standard - has had a short-term effect
of lowering Cooks revenues in the UK segment, which fell to $2.6 million from $3.0 million in
the same time a year ago. However, over the longer term, the royalty changes are projected
to significantly accelerate revenue and profit growth.

Operating losses in the UK division were $0.8 million, down from an operating profit of $0.2
million in the same period a year ago. In addition to the change in the royalty schedule and
the accounting standards, the fall reflected the costs associated with the opening of a
company-owned flagship store in Putney in South West London.

The store has a strong local community engagement, and a high level of food focus. It is
setting the standard for Esquires in the UK. It also serves as a hub for regional training and
administration.

EUROPE (IRELAND)
Constant currency total store sales in the region were $16.4 million, 19.4% ahead of the same
period a year ago. This result was driven by 16% growth constant currency store sales in
Ireland itself as three new stores came on stream late in the period.

Cooks revenue in the European segment increased to $1.2 million from $1.0 million in the
same period a year ago, despite the change to the accounting standards.

However, the gains were diluted by difficulties in the Romanian business where the regional
franchisee has failed to live up to expectations. Consequently, the region posted an operating
loss of $0.2 million compared to an operating profit of $0.2 million in the same period a year
ago

GLOBAL
Constant currency sales of the Esquires Coffee store network included in the global segment
increased 5.6% to $9.4 million from $8.9 million in the same period a year ago. Strong gains
in the Middle East and Asia were offset by weakness in Canada. Pakistan had a positive first
year of operations and is cautiously expanding.

Cooks operating revenue in the segment fell from $1.9 million to $1.4 million, with the fall
largely due to the revenue accounting standard. The global business posted an operating loss
of $0.7 million compared to an operating profit of $0.4 million in the same period a year ago,
again reflecting the change to the accounting standard.

SUPPLY AND CORPORATE
Revenue at the supply businesses was largely flat on the same period a year ago at $0.8
million with strong gains in revenue in the new carbon-neutral Grounded coffee brand offset
by weakness in Scarborough Fair’s other brands. The Crux supply business also recorded
weaker sales, and this was due largely to the timing of shipments to and from its customers
offshore.

Operating losses rose to $0.35 million compared to $0.30 million at the same time a year ago
with the increase relating to investment in the Grounded coffee brand. Corporate costs rose
by 12% to $1.6 million from $1.4 million last year, due to the costs associated with the planned
acquisition of Mojo.

CHINA
The Chinese business is now treated as an equity-accounted associate following its transition
to a new joint venture last year. Cooks has an effective 21% stake in the business and booked
a $0.4 million non-cash share of the venture’s losses for the year.

After a long period of reorganisation momentum is building in China. In the three-month period
to the end of March 2019 the Chinese business opened 21 outlets, all of which were the new
style ‘express’ outlets. Total outlets at the end of the period increased to 31 from 18 at the
same time a year ago.


For further information:
INVESTORS MEDIA
KEITH JACKSON RICHARD INDER
Executive Chairman The Project
+64 21 702 509 +64 21 645 643

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, Portugal, Romania, Bahrain, Kuwait, Saudi Arabia, Jordan, Pakistan,
Indonesia and China. For more information visit: www.cooksglobalfoods.com

1
Revenue for the 12 months to 31 March 2019 has been restated to reflect the introduction of the new NZ
IFRS 15 standard. Please refer to note K(c) in the attached Appendix 1 disclosure. The 2018 figures record
revenue under the old standard.

2
Total store sales are the aggregate of sales of all Esquires branded coffee stores, whether franchised or
partially/fully 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, except in China. Total network store sales, therefore, have a
correlation to the portion of revenue earned by Cooks Global Foods relating to recurring franchise fees.
Chinese sales are also indicative of the potential value residing in the Chinese venture. However, total
network sales 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.

Appendix 1 release
14 June 2019
Cooks Global Foods Limited
This document covers Cooks Global Food Limited's unaudited financial results for the year
ended 31 March 2019
A:(CGF) : Cooks Global Foods Limited
Reporting Period
12 months ended 31 March 2019
Previous Reporting Period
12 months ended 31 March 2018
Amount
($NZ'000)
Percentage
change
Revenue from continuing ordinary activities
$5,936-11.8%
Loss from continuing activities after tax attributable to security holders
-$4,682-189.2%
Loss from discontinued activities after tax attributable to
security holders
$0100.0%
Net loss attributable to security holders
-$4,672-25.2%
Interim Dividend
Amount per
security
Imputed
amount per
security
No interim dividend has been declared for this reporting period.
$0.0000$0.00000
CGF has no dividend reinvestment plan currently in operation.
Record Date
N/A
Dividend Payment DateN/A
Comments:
Refer to commentary in attached release.
B:Cooks Global Foods Limited
Preliminary announcement for the year ended 31 March 2019
Preliminary unaudited full year report on consolidated results (including the results for the previous corresponding
year) in accordance with Listing Rule 10.4.2.
This report has been prepared in a manner which complies with generally accepted accounting practice and
gives a true and fair view of the matters to which the report relates and is based on unaudited financial statements.
The accounting policies used in the preparation of these financial statements are consistent with those used
in the interim financial statements for the six months ended 30 September 2018 and in the audited financial
statements for the year ended 31 March 2018.
The Listed Issuer has a formally constituted Audit & Risk Committee of the Board of Directors.
Results for announcement to the market

UnauditedAudited.
C:Consolidated Statement of Financial PerformanceMar-19Up / DownMar-18
$NZ '000%$NZ '000
Revenue5,936-11.8%6,728
Cost of sales(1,171)-9.5%(1,069)
Gross profit4,765-15.8%5,659
Operating expenses and staff costs(8,185)-29.0%(6,343)
Other income5-86.5%37
Operating profit before depreciation and amortisation(3,415)
-427.8%
(647)
Depreciation and amortisation(264)-8.0%(244)
Operating loss(3,679)-312.9%(891)
Share of net loss of associates accounted for using the equity method(399)-43.0%
(279)
Finance costs(604)-34.5%(449)
Loss before income tax(4,682)-189.2%(1,619)
Net loss for the year from continuing operations(4,682)
-189.2%
(1,619)
Net loss for the year from discontinued operations
-
100.0%
(2,243)
Net loss for the year(4,682)-21.2%(3,862)
Earnings Per Share (Cents per share):(0.95)(0.79)
UnauditedAudited
D:Consolidated Statement of Financial PositionMar-19Up / DownMar-18
$NZ '000%$NZ '000
Assets
Cash and cash equivalents450714
Trade and other receivables6702,760
Inventories219154
Other assets761616
Property, plant and equipment 787359
Investments accounted for using the equity method
2,6883,087
Other non-current assets
15
15
Total tangible assets5,590-27.5%7,705
Intangible assets2,843-3.6%2,948
Total assets8,432-20.8%10,653
Liabilities
Trade and other payables6,2444,604
Bank overdraft1481,180
Borrowings and other liabilities7,7714,686
Total liabilities14,16335.3%10,470
Net (liabilities)/assets(5,731)-3231.5%183
Equity
Share capital42,51742,687
Accumulated losses(48,419)(42,535)
Foreign currency translation reserve24999
Total equity attributable to equity holders of the Company(5,653)-2352.0%251
Non-controlling interests(78)(68)
Total equity (5,731)-3231.5%183
CentsCents
Net tangible assets per share (1.75)(0.56)

UnauditedAudited
E:Statement of Changes in EquityMar-19Up / DownMar-18
$NZ '000%$NZ '000
Loss for the period(4,682)-21.2%(3,862)
Net increase in issued share capital(170)4,812
Foreign currency translation reserve150(656)
Non-controlling interests
-
(308)
Movements in equity for the period(4,702)-33482.7%(14)
Equity at start of the period183197
IFRS 15 Revenue adjustment to Accumulated Losses(1,212)
-
Equity at end of the period(5,731)-3231.5%183
UnauditedAudited
F:Consolidated Statement of Cash FlowsMar-19Up / DownMar-18
$NZ '000%$NZ '000
Loss for the period(4,682)-21.2%(3,862)
Add/(Less):
Depreciation & amortisation264495
Share of losses of associates399279
Losses from discontinued operations
-609
Net movements in working capital
2,103
1,055
Net cash flow from operating activities(1,916)-34.6%(1,424)
Net cash flow from investing activities (34)92.7%(465)
Net cash flow from financing activities 2,718-11.4%3,067
Net (decrease)/increase in cash held768-34.8%1,178
Opening bank balance(466)(1,644)
Closing bank balance302164.8%(466)
Made up as follows:
Cash and cash equivalents450714
Bank overdraft(148)(1,180)
302164.8%(466)
G:Material Acquisition of SubsidiariesN/A
H:Material Disposal of SubsidiariesN/A
I:Material Investment in Associate
(a) Name of associate entity
(b)Percentage of ownership held20.97%
(c)Contribution to consolidated loss for the period
-$399,000
(d)Date from which such contribution has been calculated1/04/2018
(e)Contribution to consolidated profit/(loss) for the
previous corresponding period
-$279,000
(f)Date from which such contribution has been calculated1/10/2017
(g)Date of disposalN/A
Shanghai Yinshi Food and
Beverage Management Company
Limited

J:Issued and Quoted Securities at End of Current Period
Category of Securities IssuedNumberQuoted
ORDINARY SHARES:
Total number of shares in issue489,509,248 489,509,248
Issued during the current period- -
K:Comments by Directors
If no report in any section, state NIL. If insufficient space below, provide details in the form of notes to be attached to this report.
(a)Material factors affecting the revenues and expenses of the group for the current full year or half year
Refer to Commentary.
(b)Significant trends or events since the end of the current full year or half year
Refer to Commentary.
(c)Changes in accounting policies since last Annual Report and/or last Half Yearly to be disclosed:
NZ IFRS 15 “REVENUE FROM CONTRACT WITH CUSTOMERS”
NZ IFRS 15 Introduces a five-step process for revenue recognition with the core principle being for entities to recognise revenue
to depict the transfer of goods and services to customers in amounts that reflect the consideration to which the entity expects
to be entitled in exchange for those goods or services.
The Group elected to apply the retrospective cumulative effect method, with no restatement of comparative period amounts.
The cumulative effect of applying the new standard is included as an adjustment to the opening balance of retained earnings
recognised in the Statement of Changes in Equity for the twelve months ended 31 March 2019.
This adjustment to opening retained earnings & trade and other payables, for the Franchise & Licence fee income was
$1,212,000 and will be spread over the life of the existing franchise & licence agreements. From the 1st April 2018 any
new franchise income or licence fee income will be spread over the life of the agreement.
For the 12 months ending 31 March 2019, the additional income generated from this IFRS 15 adjustment amounts to
$204,000 and is included in the segment information as Revenue. The above has no cash effect to the Group and the change
is for financial reporting purposes only.
NZ IFRS 9 “FINANCIAL INSTRUMENTS”
NZ IFRS 9 introduces new requirements for the classification and measurement of financial assets and liabilities. These
requirements improve and simplify the approach for classification and measurement of financial assets compared with the
requirements of NZ IAS 39.
The Group considers financial assets to be in default when internal or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts in full. Based on historic information and experience, the Group has assessed
that there is low risk with its financial assets.
(d)Critical Accounting Policies - Management believes the following to be critical accounting policies. That is they are both important
to the portrayal of the Issuer's financial condition and results, as they require management to make judgments and estimates
about matters that they are inherently uncertain
None.
(e)Management's discussion and analysis of financial condition, result and/or operations (optional) - this section should contain
forward looking statements that should outline where these involve risk and uncertainty
Refer to Commentary.
14-Jun-19
(signed by) Authorised Officer of Listed Issuer(date)

COOKS GLOBAL FOODS LIMITED
SEGMENT INFORMATION
FOR THE YEAR ENDED 31 MARCH 2019
UnauditedUnauditedUnauditedUnauditedUnauditedUnaudited
Global
franchising
& design
UK
franchising
& retail
Europe
franchising
& retail
Supply Corporate Total
Global operational splits$'000$'000$'000$'000$'000$'000
Revenue
1,3602,5911,167818-5,936
Other income1--135
Cost of inventories sold(56)(435)(2)(678)-(1,171)
Depreciation and amortisation(29)(188)(36)(1)(10)(264)
Impairment of intangible assets ------
Other expenses(1,985)(2,797)(1,337)(487)(1,579)(8,185)
Operating loss for the year(709)(829)(208)(347) (1,586)(3,679)
Non-current assets
Intangible assets50845467-1,4812,843
Property, plant and equipment 19715241217787
FOR THE YEAR ENDED 31 MARCH 2018
AuditedAuditedAuditedAuditedAuditedAudited
Global
franchising
& design
UK
franchising
& retail
Ireland
franchising
& retail
Supply Corporate Total
Global operational splits$'000$'000$'000$'000$'000$'000
Revenue1,9372,964989838-6,728
Other income-36--137
Cost of inventories sold(205)(192)-(672)-(1,069)
Depreciation and amortisation(35)(162)(35)(1)(11)(244)
Other expenses(1,264)(2,452)(762)(464)(1,401)(6,343)
Operating profit/(loss) for the year433194192(299) (1,411)(891)
Non-current assets
Intangible assets69901498-1,4802,948
Property, plant and equipment 2728525319359
FOR THE YEAR ENDED 31 MARCH 2018
AuditedAuditedAudited
China
franchising
& retail
SupplyTotal
Global operational splits$'000$'000$'000
Revenue1,746461,792
Other income27045315
Cost of inventories sold(804)(11)(815)
Other expenses(2,429)(11)(2,440)
Operating profit/(loss)(1,217)69(1,148)
Loss on sale of subsidiary after income tax(1,086)-(1,086)
Operating profit/(loss) for the year(2,303)69(2,234)
Non-current assets
Intangible assets2,137-2,137
Property, plant and equipment 570-570
Continuing operations
Continuing operations
Discontinued operations