Restaurant Brands releases FY23 full year result
DIRECTORS’ REPORT
For the year ended 31 December 2023 (FY23)
$NZm
Dec-23 Dec-22 Change ($) Change (%)
Total Group Store sales
1
1,322.2 1,239.0 +83.2 +6.7
Group Net Profit After Tax (NPAT)
2
16.3 32.1 -15.8 -49.3
Group Store EBITDA
3
4
178.4 180.0 -1.6 -0.9
Key Points
• Total Group store sales hit a record high of $1,322.2 million, an increase of $83.2 million (6.7%) on
FY22, with all four operating divisions showing growth in terms of $NZ.
• The reported NPAT of $16.3 million for the year was down $15.8 million on the prior year. This was
primarily driven by inflationary impact experienced in the first half of the year.
• The implementation of a strategic programme of price increases and cost control measures
delivered margin gains in the second half of FY23. The Group is starting
to see steady signs of
recovery, notwithstanding the continuing cost pressures.
• Total store EBITDA for the period was $178.4 million. This was down 0.9% on the previous year.
• Total store numbers as at 31 December 2023 totalled 376, unchanged from 31 December 2022.
Pizza Hut stores in New Zealand reached 124 ( 118 are operated by independent franchisees).
• At present Directors have not deemed it appropriate to declare a dividend payment.
Op
erating Results
NPAT for the year ended 31 December 2023 was $ 16.3 million. Reduced NPAT versus prior year is a result
of continuing inflation pressures, higher financing costs, and under-performance of the California region and
the New Zealand region in the first half of 2023 (1H 2023).
Inflation pressures have eased in all regions, but they remain elevated and above Central Banks’ targets.
The conditions in the labour market improved but remain tight across the Group. The implementation of a
strategic programme of price increases and cost control measures have proved successful in the second half
of FY23.
NPAT includes an impairment of $9.0 million ($6.4 million after-tax).
Total Group store sales were $1,322.2 million, up $83.2 million on the previous year. All four regions
produced positive sales growth over the year in terms of NZ dollars. Same store sales were also positive in
all regions except for California where it was affected by reduced consumer spending due to inflation.
Total Store EBITDA was $178.4 million , down $1.6 million or -0.9% on the prior year. The decrease in
EBITDA is due to tighter margins in the 1H 2023 with inflationary pressures easing in the second half of the
year. EBITDA margins (as a % of sales) reduced from 14.5% to 13.5% due to continued cost pressures
across all divisions, particularly in 1H 2023.
1
Store sales change may not aggregate to the total due to rounding.
2
NPAT change may not aggregate to the total due to rounding.
3
EBITDA is earnings before interest, tax, depreciation and amortisation. The Store EBITDA amounts referred to throughout this report
are before General and Administration (G&A) expenses, NZ IFRS 16 and Other Items. Store EBITDA is a non-GAAP financial measure
and is not in accordance with NZ IFRS.
4
Group Store EBITDA may not aggregate to the total due to rounding.
RESTAURANT BRANDS NEW ZEALAND LIMITED
The Group’s store numbers as at 31 December 2023 total led 376, comprising 147 i n New Zealand, 84 stores
in Australia, 70 in Hawaii and 75 in California. Pizza Hut stores i n New Zealand increased to 124, of which
118 are operated by independent franchisees.
New Zealand Operations
The New Zealand business contributed total store sales of $571.8 million, up $42.6 million or 8.1% on FY22.
Sales grew across all brands. This was driven by strong sales in the KFC brand, along with growing
momentum in the Carl’s Jr. and Taco Bell brands. Same store sales were up 6.2% for FY23.
31 December
2023
31 December
2022
Change ($)
Change (%)
Store sales ($m) 571.8 529.2 +42.6 +8.1
Store EBITDA ($m) 80.5 89.3 -8.8 -9.9
EBITDA as a % of Sales 14.1 16.9
Store numbers 147 143
The New Zealand KFC and Pizza Hut businesses both delivered some of the strongest sales in their
respective brands’ histories. Strategic price increases and the continued innovation of new products
achieved weekly sales records for both brands.
Carl’s Jr. continues to perform well with sales up on last year and included the opening of two new smaller
format delivery concept stores. Although Taco Bell remains a small portion of the New Zealand business, t he
brand sales increased by 13.3% year on year. The management has been realigned to combine the
New Zealand and Australian businesses under one leadership.
Store EBITDA for the New Zealand operations was $80.5 million, down $8.8 million. This was due to
persistent inflation throughout the year, particularly in 1H 2023. The inflationary pressures were primarily
attributable to ingredient, labour input, and occupancy costs. Despite these challenges, the brands
endeavoured to maintain value propositions to customers to ensure they remained competitive in the QSR
market.
Store developments were slowed due to restricted availability of building materials and store equipment.
The New Zealand division opened four new stores in the year: KFC Karaka, Taco Bell Otahuhu and two
Carl’s Jr. in Glenfield and Hamilton East.
The Pizza Hut store network has increased by 10 new independently franchised stores. This brought the
total number of Pizza Hut stores to 124, of which 118 are operated by independent franchisees under a
master franchise agreement with Restaurant Brands.
Australian Operations
In $NZ terms the Australian business contributed total store sales of $ NZ310.1 million ( up 9.4%) and a store
EBITDA of $NZ37.8 million (up 21.1%).
31 December
2023
31 December
2022
Change ($)
Change (%)
Store sales ($Am) 286.6 259.0 +27.7 +10.7
Store EBITDA ($Am) 34.9 28.6 +6.3 +22.0
EBITDA as a % of Sales 12.2 11.0
Store numbers 84 83
Total store sales in Australia were $A286.6 million, up $A27.7 million (or 10.7%) on last year. Total same
store sales growth was 6.5% across both brands however the growth in sales was predominantly driven by
the KFC brand. The KFC sales growth is attributable to a balanced approach in delivering consumer value
whilst mitigating the impacts of inflationary pressures. Taco Bell sales growth is attributable to the continued
investment in new stores, with two new stores opened in the year.
Continued focus on operational efficiencies has resulted in a store EBITDA of $A34.9m (12.2% of sales)
which was up $A6.3m or 22.0% on last year. The improved store EBITDA result was driven by t he strong
performance of the KFC brand and the continued recovery of the Sydney CBD and mall stores.
Addit ionally, an ongoing commitment to reinvesting in store upgrades and delivering on eCommerce sales
channels has helped to maintain modernity in the QSR market.
Overall store numbers increased by one during the year. Two Taco Bell stores were opened during 1H 2023
and Taco Bell Tamworth was closed and will be converted to a KFC store.
Hawaiian Operations
In $NZ terms, the Hawaiian operations contributed $NZ259.7 million in store sales (up 4.9%) and
$NZ45.0 million (up 6.4%) in Store EBITDA for the year. This was higher than FY22 with store sales up
$NZ12.2 million and Store EBITDA up $ NZ2.7 million p artly supported by a favourable NZD/USD exchange
rate.
31 December
2023
31 December
2022
Change
($m)
Change (%)
Store sales ($USm) 159.5 156.4 +3.1 +2.0
Store EBITDA ($USm) 27.6 26.8 +0.8 +3.0
EBITDA as a % of Sales 17.3 17.1
Store numbers 70 75
Total store sales in Hawaii were $US159.5 million, up by 2.0% versus last year. Overall sales growth was
due to strong Taco Bell sales partially offset by the decline in Pizza Hut sales growth. Taco Bell’s promotions
were performing better than expected. Hawaii same store sales were up 3.5% versus last year.
Store EBITDA was $US27.6 million, a $US0.8 million increase over FY22, and 17.3% as a percentage of
sales. The improvement was primarily attributable to the lift in sales for the higher margin Taco Bell stores.
Staffing continues to be an issue at a few locations but has steadily been improving throughout FY23, with
extended store hours in key stores, primarily in the late-night hours, t his should contri bute to the future
increase of Taco Bell’ s late-night footprint to a larger customer base.
Overall store numbers decreased by five during the year. with the closure of two Pearl Harbor Pizza Hut and
Taco Bell stores in May 2023 and two Pizza Hut and Taco Bell stores are temporarily closed in Lahaina
fol lowing the major wildfire in August 2023, and a fur ther Taco Bell at Johnson Circle was closed in
November 2023.
Californian Operations
In $NZ terms Cali fornia operations contributed $NZ180.7 million (up $NZ1.7 million or 0.9%) in store sales.
However, store EBITDA was down $NZ2.1 million to $NZ15.1 million.
31 December
2023
31 December
2022
Change ($) Change (%)
Store sales ($USm) 110.9 113.2 -2.3 -2.0
Store EBITDA ($USm) 9.3 10.9 -1.6 -14.7
EBITDA as a % of Sales 8.4 9.6
Store numbers 75 75
Total store sales in California were $US110.9 million, down 2.0% on a total basis versus the prior year.
Whilst three new KFC stores were opened during the year, two were opened in late December so increased
revenues from store growth will flow into FY24. Same store sales were down 4.3%. Although inflation
eased, the rollback of pandemic government assistance has seen consumers shifting to value-orientated
menu and promotional items.
Store EBITDA was $US9.3 million (8.4% as a percentage of sales). Whilst the rate of cost of sales inflation
slowed this year in comparison to the prior year, the rising cost of labour and other costs as well as the shift
in consumer preference and competitive pressure hampered the ability to fully recover margin through price
increases in FY23.
Californian store numbers remained unchanged during the year overall compared to prior year.
KFC Paramount was opened in June 2023 and two KFC stores opened in the Southern California cities of
South Gate and Ontario in December 2023 offset by three store closures.
Corporate & Other
General and administration (G&A) costs were $67.2 million, up $5.7 million from last year reflecting the effect
of inflation on salary costs and filling vacancies. G&A as a % of total revenue was 4.8% which is up from
4.7% for FY22.
Depreciation charges of $89.3 million for the year ended 31 December 2023 were $4.1 million higher than
the prior year primarily due to the impact of continued capital expenditure p articularly on refurbishments of
existing stores. Included in the depreciation charge was $42.6 million related to right of use asset
depreciation incurred under NZ IFRS 16.
Financing costs of $56.2 million were up $11.7 million on the prior year, reflecting the impact of higher
interest rates. Interest on bank debt for the period ended 31 December 2023 was $20.7 million, up
$9.6 million on last year.
Other expenses
Other net expenses of $6.1 million are up $3.2 million from $2.9 million for the prior year. This year’s
increase is primarily driven by a net impairment charge of $9.0 million partially offset by $4.7 million of
insurance recovery proceeds following the wildfire in Lahaina and flood damage in Australia.
Remaining items in other expenses i n FY23 were $0.6 million relating to a store closure in Australia and
$1.3 million of legal expenses in California.
Cash Flow & Balance Sheet
Total assets were $1,425.8 million, up $8.5 million on FY22 primarily driven by store refurbishments and
eight new stores added across the network during the year which increased the value of property, plant and
equipment. The Group also acquired land for new store development. Total liabilities were $1,135.4 million
up $11.3 million on the prior year, reflecting the inflationary impact o n trade and other payables, the Group’s
commitment to the store refurbishment program, and higher levels of bank debt.
Operating cash flows supported by inventory reductions were up $6.3 million to $127.8 million.
Net investing cash outflows were $84.7 million (vs $91.6 million in FY22). A decrease of $6.8 million is
mostly attributable to a decrease in capital expenditure and reflects the lower investment in new store builds
compared with FY22.
Dividend
The Board have assessed at balance date the current and projected financial position of the Group and in
particular its cash flows, capital expenditure demands and debt levels. Given the demands of the store
development programme on the Group’s capital resour ces and an increased level of debt, directors believe it
is in the best interests of the Group to retain cash in order to support growth and maintain funding flexibility.
Annual Shareholders’ Meeting
The Annual Shareholders’ Meeting of the company will be held in Auckland on Friday 24 May 2024.
José Parés
Chairman of the Board
Arif Khan
Group CEO
Group pro forma profit statement
For the year ended 31 December 2023
31 D
ecember 2023vs Prior31 December 2022
$NZ000's%
Store Sales
Ne w Ze aland571,771 8.1529,158
Australia310,050 9.4283,397
Hawaii259,677 4.9247,459
California180,689 0.9179,035
Total sales1,322,187 6.71,239,048
Other revenue73,064 23.559,170
Total operating revenue1,395,251 7.51,298,218
Cost of goods sold(1,165,352)(8.2)(1,077,075)
Gross margin229,899 4.0221,143
Distribution expenses (9,509)(15.3)(8,244)
Marketing expenses(68,461)(10.7)(61,849)
General and administration expenses(67,186)(9.3)(61,445)
Other items(6,131)(111.4)(2,900)
O pe rating profit 78,612 (9.3)86,705
Financing expenses(56,193)(26.2)(44,528)
Net profit before taxation22,419 (46.8)42,177
Taxation expense (6,156)39.0(10,094)
Total profit after taxation (NPAT)16,263 (49.3)32,083
% sales% sales
Store EBITDA before G&A
Ne w Ze aland80,482 14.1(9.9)89,342 16.9
Australia37,796 12.221.131,205 11.0
Hawaii45,040 17.36.442,322 17.1
California15,059 8.3(12.2)17,147 9.6
Total Store EBITDA before G&A178,377 13.5(0.9)180,016 14.5
Ratios
Ne t tangible asse ts pe r se curity (ne t tangible asse ts divide d by
numbe r of share s) in ce nts
24.2 11.9
Cost of goods sold are direct costs of operating stores: food, paper, freight, labour and store overheads.
Distribution expenses are costs of distributing product from store.
Marketing expenses are order centre, advertising and local store marketing expenses.
General and administration expenses (G&A) are non-store related overheads.
Store sales and Store EBITDA for each of the concepts may not aggregate to the total due to rounding.
Non-G AAP Financial Me asure s
For the year ended 31 December 2023
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and comply
w
ith New Zealand International Financial Reporting Standards (“NZ IFRS”). These financial statements include non-GAAP
financial measures that are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in this presentation
are as follows:
1. Store EBITDA be fore G e ne ral and Administration (G &A) e xpe nse s, NZ IFRS 16 and othe r ite ms.
The Group calculates
Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) before G&A, NZ IFRS 16 and other items
by taking net profit before taxation and adding back (or deducting) financing expenses, other items, depreciation,
amortisation, NZ IFRS 16 and G&A. The Group also refers to this measure as Store EBITDA before G&A and other items.
This measure provides the results of the Group’s core operating business and excludes those costs not directly attributable to stores.
This is believed to be a useful measure to assist in the understanding of the financial performance of the Group.
The term Store refers to the Group’s 10 operating divisions comprising the New Zealand brands (KFC, Pizza Hut, Taco Bell and
Carl’s Jr.), the two Australia brands (KFC and Taco Bell), the two Hawaii brands (Taco Bell and Pizza Hut), and the two California
brands (KFC and Taco Bell). The term G&A represents non-store related overheads.
2. Total NPAT excluding the impact of NZ IFRS 16. Total Net Profit After Taxation (“NPAT”) excluding the impact of NZ IFRS
16 is calculated by taking profit after taxation attributable to shareholders and adding back (or deducting) lease items whilst also
allowing for any tax impact of those items. This measure reflects the performance of the business, excluding costs associated with the
adoption of NZ IFRS 16 and is considered a useful measure to assist with understanding the financial performance of the Group.
T
he Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding of the
financial performance and position of the Group but that they should not be viewed in isolation, nor considered as a substitute for
measures reported in accordance with IFRS. Non-GAAP measures as reported by the Group may not be comparable to similarly
titled amounts reported by other companies.
The following is a reconciliation between these non-GAAP measures and net profit after taxation:
$NZ000'sNote*
Store EBITDA before G&A, NZ IFRS 16 and other items1
178,377 180,016
Depreciation(46,717)(43,935)
Net loss on sale of property, plant and equipment (included in depreciation)(909)(952)
Lease depreciation(42,615)(41,282)
Lease costs65,558 60,473
Amortisation (included in cost of sales)(10,071)(10,119)
General and administration costs - area managers, general managers and support centre(58,880)(54,596)
Net impairment(8,985)(162)
Other items2,854 (2,738)
O pe rating profit78,612 86,705
Financing expenses(56,193)(44,528)
Net profit before taxation 22,419 42,177
Taxation expense (6,156)(10,094)
Net profit after taxation16,263 32,083
Add back NZ IFRS 16 impact12,359 14,208
Income tax on NZ IFRS 16 impact(2,792)(3,934)
Total NPAT excluding the impact of NZ IFRS 16
2
25,830 42,357
* Refers to the list of non-GAAP measures as listed above.
31 Dec 202331 Dec 2022
---
ANNUAL RESULTS TO
31 DECEMBER 2023 (FY23)
Arif Khan | Group CEO
Julio Valdés | Group CFO
26 February 2024
26 February 2024
Presentation Outline
FY23 Financial Performance
FY23 Regional Performance
FY24 Outlook
Questions
FY23 Overview1
2
3
4
5
FY23 Overview
4
•- Store EBITDA includes Government Grants - FY21 $7.2m
•Store sales hit record high of $1,322m, up $83m (6.7%) on FY22.
•Store EBITDA down 0.9% from inflationary pressures, particularly in the first half of FY23.
•Reported NPAT of $16.3m, down $15.8m on FY22 due to external economic pressures.
FY21
FY22
FY23
FY23 vs. FY22
• Group Store Sales
$1,068.2m
$1,239.0m
$1,322.2m
+6.7%
• Reported NPAT
$51.9m
$32.1m
$16.3m
-49.3%
• Store EBITDA *
$172.7m
$180.0m
$178.4m
-0.9%
Key Points
FY23 in review
5
•Despite challenging operating environment, sales reached a record high.
•All divisions experienced ingredient inflation and minimum wage increases, with
New Zealand stores impacted the most, which impacted margins.
•A year of two halves with a recovery in margins during the second half as
ingredient/wage inflation pressures eased assisted by mitigation strategies.
•Caution exercised on price increases to ensure long term consumer base is
supported.
•Continued progress delivered against business improvement and innovation
workstreams to ensure our systems and customer offering place the Group in a
strong position for sustainable future growth.
FY23 Financial
Performance
NPAT decreases on inflationary pressures
and higher financing costs
7
* - Pre G&A, NZ IFRS 16 and Other (Income)/Expenses
$NZm
FY22
FY23
Store EBITDA *
180
178
(2)
(1%)
Net G&A Expenses
55
58
(3)
(5%)
125
120
(5)
(4%)
Other Expenses
3
6
(3)
(100%)
Depreciation & Amortisation
55
58
(3)
(5%)
Operating Profit Pre IFRS 16
67
56
(11)
(16%)
IFRS 16 Adjustment
19
22
3
16%
Operating Profit
86
78
(8)
(9%)
Financing Expenses
44
56
(12)
(27%)
Net Profit Before Tax
42
22
(20)
(48%)
Taxation
10
6
4
40%
Net Profit After Tax
32
16
(16)
(50%)
Change B/(W)
8
* - Pre G&A, NZ IFRS 16 and Other (Income)/Expenses
$NZm
FY23 1st Half
FY23 2nd Half
Store EBITDA *
78
100
22
28%
G&A Expenses
29
29
0
0%
49
71
22
45%
Other Expenses
2
4
(2)
(100%)
Depreciation & Amortisation
28
30
(2)
(7%)
Operating Profit Pre IFRS 16
19
37
18
95%
IFRS 16 Adjustment
11
11
0
0%
Operating Profit
30
48
18
60%
Financing Expenses
27
29
(2)
(7%)
Net Profit Before Tax
3
19
16
533%
Taxation
1
5
(4)
(400%)
Net Profit After Tax
2
14
12
600%
Change B/(W)
NPAT improved in second half on
margin improvement
9
14.5%
11.9%
12.7%
14.0%
15.2%
13.5%
FY22Q1Q2Q3Q4FY23
FY23 Store EBITDA %
16.2%
13.6%
15.2%
13.9%
15.4%
14.5%
FY21Q1Q2Q3Q4FY22
FY22 Store EBITDA %
Quarterly Trends – Consistent
recovery from inflation impact
10
461
529
572
244
283
310
207
247
260
157
179
181
1,068
1,239
1,322
FY21FY22FY23
Store Sales
$NZm
New ZealandAustraliaHawaiiCalifornia
83
89
80
32
31
38
34
42
45
24
17
15
173
180
178
FY21FY22FY23
Store EBITDA
$NZm
New ZealandAustraliaHawaiiCalifornia
Sales lift with margins under
inflationary pressures
11
$NZm Pre-tax (Other Income)/Expenses
FY22FY23
Insurance recoveries(1.6)(4.7)
Gain on acquisition(0.8)-
Acquisition costs0.1 -
Legal settlement-1.2
ERP implementation4.0 -
Store impairments & closures1.2 9.6
Net Other (Income)/Expenses2.9 6.1
Other Income and Expenses - Store
impairment costs partly offset by
insurance recoveries
12
$NZmFY21FY22FY23
Operating Cash Flow ( NZ IFRS 16 adjusted)102 *95 *98 *
Investing Cash Flow (adjusted)(82)**(92)(85)
Free Cash Flow20 3 13
* Adjusted for lease principal payments of $29.5m (FY22 $27.0m, FY21 $24.5m) classified as financing activities under NZ IFRS 16
** Adjusted for $27.5m ($A23.3m) 5 store Australia acquisition in FY21
Operating cash flows supported by inventory
reductions. Investing cash flows at traditional
run rate of new stores and refurbishments
13
FY21 FY22 FY23 Facility (3-4 years)
Ratios
Net Bank Debt: EBITDA*1.6:12.0:12.2:1
Gearing(NBD:NBD+E)41%46%47%
Net Bank Debt $NZm
* EBITDA excluding right of use asset lease costs (pre-NZ IFRS 16)
202
251
257
376
Net borrowings – minor increase
following softer first half year result
FY23 Regional
Performance
15
New Zealand Operations
16
461
529
572
9.1%
2.4%
6.2%
FY21FY22FY23
NZ Store Sales
Total Sales $mSame Store Sales %
83
89
80
18.1%
16.9%
14.1%
FY21FY22FY23
NZ Store EBITDA
EBITDA $mEBITDA % of Sales
NZ sales grow on rolling over prior year COVID-19
impact and new stores. Margins impacted by
inflation and higher number of Taco Bell stores
17
Australian Operations
18
230
259
287
1.4%
6.1%
6.5%
FY21
FY22
FY23
Australia Store Sales
Total Sales $Am
Same Store Sales %
30
29
35
13.0%
11.0%
12.2%
FY21FY22FY23
Australia Store EBITDA
EBITDA $AmEBITDA % of Sales
Australian sales and margin increase as mall
and CBD stores recover from COVID-19.
Inflation pressures on consumers continue
19
Hawaiian Operations
20
146
157
160
9.1%
2.9%
3.5%
FY21
FY22
FY23
Hawaii Store Sales
Total Sales $USm
Same Store Sales %
24
27
28
16.4%
17.1%
17.3%
FY21
FY22
FY23
Hawaii Store EBITDA
EBITDA $USm
EBITDA % of Sales
Hawaii sales and margins continue
to be strong
21
Californian Operations
22
110
113
111
2.3%
-
2.9%
-
4.3%
FY21
FY22
FY23
California Store Sales
Total Sales $USm
Same Store Sales %
17
11
9
15.2%
9.6%
8.4%
FY21FY22FY23
California Store EBITDA
EBITDA $USmEBITDA % of Sales
California adversely impacted by
inflationary impacts on consumers
FY24 Expectations
23
•Sales - New Zealand to continue strong growth,
weaker sales in Australia and California, with Hawaii
maintaining their strong market share.
•Margin gains from second half of FY23 to continue,
noting that inflationary pressures continue to impact
our consumers, particularly in Australia and California
markets.
•$20 p/hr minimum wage in California starts 1 April
(currently $16 p/hr), with plans in place to maintain
margin and capture market share.
•Capex spend expected to continue at FY23 levels on
mix of new stores, refurbishments and new
technology.
FY24 Outlook
25
Dividend update
•Given the demands of the store development programme on the Group’s
capital resources and an increased level of debt, directors believe it is in the
best interests of the Group to retain cash in order to support growth and
maintain funding flexibility, therefore the Directors have not deemed it
appropriate to declare a dividend payment.
Profit guidance
•No guidance at present given ongoing economic volatility, but to reassess
after half year.
FY24 Outlook
26
•Restaurant Brands remains well positioned to deliver on its strategy to provide
continued long-term shareholder value despite current challenging economic
conditions.
•Key strategic workstreams are underway to continue transforming the business and
ensure strong foundations are in place to deliver sustainable growth.
oInnovation across menu store formats, operations, staffing and customer
experience
oOngoing margin improvement and cost stabilisation measures
oEnhancement of end-to-end processes to streamline contracting, procurement,
pricing, hiring and inventory management
oInvestment in digital platforms to maximise customer access
oEnhanced marketing and promotions
oESG initiatives, including general waste diversion, energy efficiency, and food
waste reduction programs
What’s next: the roadmap for
sustainable growth
Questions
DISCLAIMER
The information in this presentation:
•Is provided by Restaurant Brands New Zealand Limited (“RBD”) for general information purposes and
does not constitute investment advice or an offer of or invitation to purchase RBD securities.
•Includes forward-looking statements. These statements are not guarantees or predictions of future
performance. They involve known and unknown risks, uncertainties and other factors, many of which
are beyond RBD’s control, and which may cause actual results to differ materially from those contained
in this presentation.
•Includes statements relating to past performance which should not be regarded as reliable indicators
of future performance.
•Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX
Main Board and ASX listing rules, RBD is not under any obligation to update this presentation, whether
as a result of new information, future events or otherwise.
•Should be read in conjunction with RBD’s audited consolidated financial statements for the 12 months
ended 31 December 2023 and NZX and ASX market releases.
•Includes non-GAAP financial measures including "EBITDA”. These measures do not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial information
presented by other entities. However, they should not be used in substitution for, or isolation of, RBD’s
audited consolidated financial statements. We monitor EBITDA as a key performance indicator, and we
believe it assists investors in assessing the performance of the core operations of our business.
•Has been prepared with due care and attention. However, RBD and its directors and employees accept
no liability for any errors or omissions.
28
Questions
---
Restaurant Brands New Zealand Limited
Consolidated Financial Statements
For the year ended 31 December 2023
R
estaurant Brands New Zealand Limited
Page | 1
Directors’ statement
for the year ended 31 December 2023
The Directors of Restaurant Brands New Zealand Limited (Restaurant Brands or the Company) are pleased to present the consolidated
financial statements for Restaurant Brands and its subsidiaries (together the Group) for the year ended 31 December 2023 contained on
pages 2 to 35.
Consolidated financial statements for each financial period fairly present the consolidated financial position of the Group and its
consolidated financial performance and cash flows for that period and have been prepared using appropriate accounting policies,
consistently applied and supported by reasonable judgements and estimates and all relevant consolidated financial reporting and
accounting standards have been followed.
Proper accounting records have been kept that enable, with reasonable accuracy, the determination of the consolidated financial position
of the Group and facilitate compliance of the consolidated financial statements with the Financial Markets Conduct Act 2013.
A
dequate steps have been taken to safeguard the assets of the Group to prevent and detect fraud and other irregularities.
The Directors hereby approve and authorise for issue the consolidated financial statements for the year ended 31 December 2023.
For and on behalf of the Board:
José Parés
Emilio Fullaondo
Chairman
Director
26 February 2024
26 February 2024
Restaurant Brands New Zealand Limited
Page | 2
Consolidated statement of comprehensive income
for the year ended 31 December 2023
$NZ000’s
Note 31 December 2023 31 December 2022
Store sales revenue 1,2 1,322,187 1,239,048
Other revenue 1,2 73,064 59,170
Total revenue 1,395,251 1,298,218
Cost of goods sold (1,165,352) (1,077,075)
Gross profit 229,899 221,143
Distribution expenses (9,509) (8,244)
Marketing expenses (68,461) (61,849)
General and administration expenses (67,186) (61,445)
Other income 2 4,700 2,465
Other expenses 2 (10,831) (5,365)
Operating profit 78,612 86,705
Financing expenses 4 (56,193) (44,528)
Profit before taxation 22,419 42,177
Taxation expense 16 (6,156) (10,094)
Profit after taxation attributable to
shareholders
16,263 32,083
Other comprehensive income:
Exchange differences on translating foreign
operations
955
10,515
Derivative hedging reserve - 954
Income tax relating to components of other
comprehensive income
-
(182)
Other comprehensive income for the period,
net of tax
955 11,287
Total comprehensive income for the period
attributable to shareholders
17,218 43,370
Basic and diluted earnings per share (cents) 3 13.04 25.72
The accompanying material accounting policy information and notes form an integral part of the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 3
Consolidated statement of changes in equity
for the year ended 31 December 2023
$NZ000’s
Note
Share
capital
Foreign
currency
translation
reserve
Derivative
hedging
reserve
Retained
earnings
Total
For the year ended 31 December 2022
Balance at 1 January 2022
154,565
(1,480)
(872)
137,524
289,737
Profit
Profit after taxation attributable to shareholders - - - 32,083 32,083
Other comprehensive income
Movement in foreign currency translation reserve - 10,415 100 - 10,515
Movement in derivative hedging reserve - - 772 - 772
Total other comprehensive income - 10,415 872 - 11,287
Total comprehensive income
-
10,415
872
32,083
43,370
Transactions with owners
Net dividend distributed - - - (39,923) (39,923)
Total transactions with owners - - - (39,923) (39,923)
Balance as at 31 December 2022 7 154,565 8,935 - 129,684 293,184
For the year ended 31 December 2023
Balance at 1 January 2023
154,565
8,935
-
129,684
293,184
Profit
Profit after taxation attributable to shareholders - - - 16,263 16,263
Other comprehensive income
Movement in foreign currency translation reserve - 955 - - 955
Total other comprehensive income - 955 - - 955
Total comprehensive income
-
955
-
16,263
17,218
Transactions with owners
Net dividend distributed - - - (19,961) (19,961)
Total transactions with owners - - - (19,961) (19,961)
Balance as at 31 December 2023 7 154,565 9,890 - 125,986 290,441
The accompanying material accounting policy information and notes form an integral part of the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 4
Consolidated statement of financial position
as at 31 December 2023
$NZ000’s
Note
31 December 2023
31 December 2022
Non-current assets
Property, plant and equipment
13 341,773 319,302
Land held for development 11 12,431 7,084
Right of use assets 14 587,649 607,765
Sub-lease receivable 878 962
Intangible assets 15 349,216 358,336
Deferred tax asset 16 54,187 43,627
Total non-current assets
1,346,134
1,337,076
Current assets
Inventories 8 19,761 25,140
Trade and other receivables 9 23,739 15,570
Income tax receivable 4,600 9,616
Cash and cash equivalents 10 31,584 29,869
Total current assets 79,684 80,195
Total assets 1,425,818 1,417,271
Equity attributable to shareholders
Share capital 7 154,565 154,565
Reserves 7 9,890 8,935
Retained earnings 125,986 129,684
Total equity attributable to shareholders
290,441
293,184
Non-current liabilities
Provisions 17 5,354 4,858
Deferred income 18 477 804
Loans 4 288,962 280,281
Lease liabilities 14 674,304 685,332
Total non-current liabilities 969,097 971,275
Current liabilities
Income tax payable - 1,480
Trade and other payables 12 131,339 119,290
Provisions 17 1,689 1,866
Lease liabilities 14 31,984 29,599
Deferred income 18 1,268 577
Total current liabilities 166,280 152,812
Total liabilities 1,135,377 1,124,087
Total equity and liabilities 1,425,818 1,417,271
The accompanying material accounting policy information and notes form an integral part of the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 5
Consolidated statement of cash flows
for the year ended 31 December 2023
$NZ000’s Note 31 December 2023 31 December 2022
Cash flow from operating activities
Cash was provided by / (applied to):
Receipts from customers 1,394,168 1,295,520
Payments to suppliers and employees (1,197,705) (1,109,499)
Interest paid (20,071) (10,901)
Interest paid on leases 14 (35,303) (33,429)
Payment of income tax (13,252) (20,097)
Net cash from operating activities 127,837 121,594
Cash flow from investing activities
Cash was (applied to) / provided by:
Acquisition of business 25 - (1,087)
Payments for intangible assets (1,562) (1,559)
Purchase of property, plant and equipment (79,359) (83,431)
Purchase of land held for development 11 (5,347) (7,084)
Proceeds from the disposal of property, plant and
equipment
1,545 1,591
Net cash used in investing activities
(84,723)
(91,570)
Cash flow from financing activities
Cash was provided by / (applied to):
Proceeds from loans 444,535 527,834
Repayment of loans (436,876) (506,397)
Dividend paid to shareholders (19,961) (39,923)
Payments for lease principal 14 (29,462) (27,044)
Net cash used in financing activities (41,764) (45,530)
Net increase / (decrease) in cash and cash
equivalents
1,350 (15,506)
Cash and cash equivalents at beginning of the year
29,869
45,155
Foreign exchange movements 365 220
Cash and cash equivalents at the end of the year 31,584 29,869
Cash and cash equivalents comprise:
Cash on hand 10 691 678
Cash at bank 10 30,893 29,191
31,584 29,869
The accompanying material accounting policy information and notes form an integral part of the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 6
Consolidated statement of cash flows (continued)
for the year ended 31 December 2023
$NZ000’s Note 31 December 2023 31 December 2022
Reconciliation of profit after taxation with net cash from
operating activities:
Total profit after taxation attributable to
shareholders
16,263 32,083
Add items classified as investing activities:
Gain on acquisition of business 2 - (842)
Loss on disposal of property, plant and equipment 13 1,948 949
1,948
107
Add/(less) non-cash items:
Depreciation 13,14 89,332 85,220
Lease termination (792) -
Increase in provisions 667 941
Amortisation 15 10,071 10,118
Impairment of property, plant and equipment 13 6,861 1,209
Impairment of intangible assets 15 2,124 -
Net increase in deferred tax asset 16 (10,520) (6,217)
97,743 91,271
Add/(less) movement in working capital:
Decrease / (Increase) in inventories 5,388 (2,648)
(Increase) / Decrease in trade and other receivables (7,167) 1,265
Increase in trade and other payables 10,239 3,303
Increase / (Decrease) in income tax payable 3,423 (3,787)
11,883 (1,867)
Net cash from operating activities 127,837 121,594
Reconciliation of movement in loans
Opening balance 280,281 246,887
Net proceeds from loans 7,659 21,437
Decrease / (Increase) in prepaid facility costs 143 (92)
Foreign exchange movement 879 12,049
Closing balance 288,962 280,281
The accompanying material accounting policy information and notes form an integral part of the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 7
Notes to and forming part of the consolidated financial statements
for the year ended 31 December 2023
Note
Page
Reporting entity 8
Basis of preparation
8
Performance
1. Segmental reporting
11
2. Revenue and expenses
13
3. Earnings per share
15
Funding and equity
4. Loans
15
5. Financial assets and liabilities
17
6. Financial risk management
18
7. Equity and reserves
20
Working capital
8. Inventories
20
9. Trade and other receivables
20
10. Cash and cash equivalents
21
11. Land held for development
21
12. Trade and other payables
21
Long term assets
13. Property, plant and equipment
22
14. Leases
25
15. Intangible assets
26
Other notes
16. Taxation
29
17. Provisions
31
18. Deferred income
31
19. Related party transactions
32
20. Commitments
32
21. Contingent liabilities
33
22. Subsequent events
33
23. Auditor’s remuneration
33
24. Donations
33
25. Business combinations
33
26. Deed of Cross Guarantee
34
Restaurant Brands New Zealand Limited
Page | 8
Basis of preparation
for the year ended 31 December 2023
Reporting entity
The reporting entity is the consolidated group (the “Group”) comprising the parent entity Restaurant Brands New Zealand Limited (the
“Company”) and its subsidiaries. Restaurant Brands New Zealand is a limited liability company incorporated and domiciled in New Zealand.
The principal activity of the Group is the operation of quick service and takeaway restaurant concepts in New Zealand, Australia, California,
and Hawaii (including Saipan and Guam).
Restaurant Brands New Zealand Limited is registered under the Companies Act 1993 and is an FMC reporting entity under Part 7 of the
Financial Markets Conduct Act 2013. The address of its registered office is Level 3, Building 7, Central Park, 666 Great South Road,
Penrose, Auckland. The Company is listed on the New Zealand Stock Exchange (“NZX") and the Australian Securities Exchange ("ASX").
The Group is designated as a for-profit entity for financial reporting purposes.
Subsidiaries of the Company are as follows:
Name
Nature
Restaurant Brands Limited
Restaurant operating
Restaurant Brands Australia Pty Limited
Restaurant operating
QSR Pty Limited
Restaurant operating
Taco Aloha Inc.
Restaurant operating
Hawaii Pizza Hut Inc.
Restaurant operating
Pizza Hut of Guam, Inc.
Restaurant operating
Pizza Hut of Saipan, Inc.
Restaurant operating
TB Guam Inc.
Restaurant operating
RBD California Restaurants Limited
Restaurant operating
RBD US Holdings Limited
Investment holding
Pacific Island Restaurants Inc.
Investment holding
TD Food Group Inc.
Investment holding
RB Holdings Limited
Investment holding
RBP Holdings Limited
Investment holding
RBDNZ Holdings Limited
Investment holding
RBN Holdings Limited
Investment holding
Restaurant Brands Australia Holdings Pty Limited
Investment holding
Restaurant Brands Properties Limited
Property holding
Restaurant Brands Nominees Limited
Employee share option plan trustee
Restaurant Brands Pizza Limited Non-trading
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with:
• New Zealand Generally Accepted Accounting Practice (“NZ GAAP”)
• Part 7 of the Financial Markets Conduct Act 2013
• NZX Main Board Listing Rules
They comply with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”), NZ IFRIC interpretations, and other
applicable Financial Reporting Standards, as appropriate for a for-profit entity. The consolidated financial statements comply with
International Financial Reporting Standards Accounting Standards (“IFRS Accounting Standards”) as issued by the IASB.
The measurement basis adopted in the preparation of these consolidated financial statements is historical cost, modified by the revaluation
of certain financial instruments as identified in the accompanying notes. The consolidated financial statements are presented in New
Zealand dollars, rounded where necessary to the nearest thousand dollars. The material accounting policies applied in the preparation of
these consolidated financial statements are set out in the accompanying notes including where an accounting policy choice is provided by
NZ IFRS, is new or has changed, is specific to the Group’s operations or is material. These policies have been consistently applied to all
the periods presented, unless otherwise stated. Certain comparative amounts have been reclassified to conform with the current year’s
presentation.
Restaurant Brands New Zealand Limited
Page | 9
Basis of preparation (continued)
for the year ended 31 December 2023
New disclosure requirements and changes in accounting policies
There are various standards, amendments and interpretations which are published but not yet effective and were assessed as having an
immaterial impact on the Group. There are no NZ IFRS, NZ IFRIC interpretations or other applicable IFRS Accounting Standards that are
effective for the first time for the financial year beginning on or after 1 January 2023 that had a material impact on the consolidated financial
statements.
On 14
th
of December 2022 the External Reporting Board (XRB) published its climate-related disclosure standards. The mandatory reporting
regime for disclosing risk in the annual report is for reporting periods beginning after 1 January 2023.
Climate-related Disclosures will be
reported at the time of the issuance of the annual report.
Expected changes to income tax legislation
On 8 October 2021, 136 countries reached an agreement for a two-pillar approach to international tax reform (“OECD agreement”). In May 2023
the New Zealand Government has announced that New Zealand will adopt the OECD-led global tax initiative aimed at ensuring large
multinationals pay a minimum tax rate of 15 per cent in participating countries. The OECD agreement is likely to see changes in corporate tax
rates in a number of countries in the next few years.
Applying the OECD Pillar Two model rules and determining their impact on the IFRS financial statements is complex and poses a number of
practical challenges. It is not immediately apparent how entities would apply the principles and requirements in IAS 12 Income Taxes in
accounting for top-up tax arising from the Pillar Two model rules – specifically, whether the recognition and measurement of deferred tax assets
and liabilities would be impacted. If deferred tax assets and liabilities would be impacted by the rules, this would be from the date when the
relevant national legislation is enacted or substantively enacted.
As at 31 December 2023, the Pillar Two requirements have not been enacted in any of the territories in which the Group operates and as a result
there is no impact on these consolidated financial statements.
Use of non-GAAP measures within the consolidated financial statements
The consolidated financial statements include non-GAAP financial measures that are not prepared in accordance with NZ IFRS. The non-GAAP
financial measures used in the consolidated financial statements are referenced below along with an explanation as to why these measures provide
relevant and reliable information for investors and how the Group uses the information internally:
• Operating profit/(loss) before NZ IFRS 16 - Operating profit before NZ IFRS 16 is used by the Group to review the underlying operating profit
without the non-cash adjustment relating to NZ IFRS 16 - Leases. This is how many of the external users of the consolidated financial
statements also view the performance of the business.
• EBITDA – Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is a key business measure that provides information on
the business on a cash basis before funding and tax costs. This is a key measure used by the banks, with the Group’s debt covenants based
on this figure, and also is a key assumption within the impairment testing because it reflects how management evaluates and manages the
performance of its cash generating units.
• EBITDAL - Earnings Before Interest, Tax, Depreciation, Amortisation and Lease costs. This is another measure used by the banks, with the
Group’s total fixed charge coverage ratio based on this figure.
• EBITDA before general and administration expenses, NZ IFRS 16 and other items – The Group calculates EBITDA before G&A (general
and administration expenses) and other items by taking net profit before taxation and adding back (or deducting) financing expenses, other
items, depreciation, amortisation and G&A. The Group also refers to this measure as Store EBITDA before G&A and other items. This
measure provides the results of the Group’s core operating business and excludes those costs not directly attributable to stores. This is
believed to be a useful measure to assist in the understanding of the financial performance of the Group.
• Net profit after taxation excluding NZ IFRS 16 – This is calculated by taking profit after taxation attributable to shareholders and excluding
lease items whilst also allowing for any tax impact of those items. This measure reflects the performance of the business, excluding costs
associated with NZ IFRS 16 and is considered a useful measure to assist with understanding the financial performance of the Group.
• Capital expenditure including intangible assets – This represents additions to property, plant and equipment and intangible assets. This
measure represents the amount of investment in the business and is therefore a useful measure to assist the understanding of the Group’s
financial position.
• Other items – These relate to non-core business items disclosed as other income and other expenses as set out in note 2.
References to, EBITDA and EBITDAL within note 4 relate to the debt covenants specified by the banks and therefore these constitute non-GAAP
measures used by the Group within the consolidated financial statements.
The Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding of the financial
performance and position of the Group: however, they should not be viewed in isolation, nor considered as a substitute for measures reported in
accordance with NZ IFRS. The non-GAAP measures presented do not have a standardised meaning prescribed by GAAP and therefore may not
be comparable to similar financial information presented by other entities. These non-GAAP measures are used by management in making the
business decisions for the Group as shown in note 1.
Restaurant Brands New Zealand Limited
Page | 10
Basis of preparation (continued)
for the year ended 31 December 2023
These audited consolidated financial statements were authorised for issue on 26 February 2024 by the Board of Directors who do not have the
power to amend afterwards.
Judgements and estimates
Material accounting policy information and critical estimates and assumptions are disclosed in the relevant notes to the consolidated financial
statements and identified using coloured boxes. By definition these will seldom equal the actual results. Estimates and judgements are continually
assessed, and are based on professional experience and various factors, including expectations of future events, that are deemed to be justified
in given circumstances. Revisions to estimates are recognised prospectively.
Climate change
All companies face risks and opportunities derived from the climate and are having to make strategic decisions in this area. In 2022, the Group
established an Environmental, Social and Governance (ESG) Management Committee to assess the relevant climate risks that impact the business
in conjunction with climate-related disclosure requirements that became effective in 2023. The impacts of climate risks on the consolidated financial
statements are broad and potentially complex and will depend on the specific risks of the sector. When the future is analysed, probability scenarios
are presented where not only the physical consequences of climate change are
assessed, but also the changes in environmental regulations to
face it. Both physical risks such as susceptibility of stores and other key locations to rising sea levels and flooding, and transitional risks pose a
number of threats and opportunities to overall financial stability, potentially influencing financial markets in the future. The Group has performed
an initial assessment of potential climate-related risks and the location of the restaurants and other key operations in each region that it operates
in. This included considering whether there are any short to medium term impact on the recognised assets of the Group arising from climate-
related risks. The Group concluded that there is no material impact on the consolidated financial statements.
Restaurant Brands New Zealand Limited
Page | 11
Notes to and forming part of the consolidated financial statements
for the year ended 31 December 2023
PERFORMANCE
1. Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers. The Group is
split into four geographically distinct operating divisions; New Zealand, Australia, Hawaii and California. The chief operating decision makers,
responsible for allocating resources and assessing performance of the operating segments, have been identified as the Group Chief Executive
Officer (Group CEO) and Group Chief Financial Officer (Group CFO). The chief operating decision makers consider the performance of the
business from a geographic perspective, being New Zealand, Australia, Hawaii (including Guam and Saipan) and California while the performance
of the corporate support function is assessed separately.
The Group is therefore organised into four operating segments, depicting the four geographic regions the Group operates in and the corporate
support function located in New Zealand. All segments operate quick service and takeaway restaurant stores.
The Group evaluates performance and allocates resources to its operating segments on the basis of segment assets, segment revenues, Store
EBITDA before general and administration expenses, NZ IFRS 16 and operating profit before other items. Operating profit refers to earnings before
interest and taxation. Revenue is from external customers.
Segment assets include items directly attributable to the segment (i.e. property, plant and equipment, intangible assets and inventories). Segment
capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill.
The Group has not disclosed segment liabilities as the chief operating decision makers evaluate performance and allocate resources purely on the
basis of aggregated Group liabilities.
31 December 2023
$NZ000’s
New Zealand
Australia
Hawaii
California
Corporate
support
function Total
Business segment
Store sales revenue 571,771 310,050 259,677 180,689 - 1,322,187
Other revenue 71,039 423 1,493 109 - 73,064
Total revenue 642,810 310,473 261,170 180,798 - 1,395,251
Store EBITDA before general and
administration expenses, NZ IFRS
16 and other items 80,482 37,796 45,040 15,059 -
178,377
General and administration expenses (15,389) (15,298) (11,922) (10,934) (5,337) (58,880)
65,093 22,498 33,118 4,125 (5,337) 119,497
Other income - 1,529 3,171 - - 4,700
Other expenses - (595) - (1,251) - (1,846)
Impairment charges 13 (2,596) (559) (5,843) - (8,985)
Depreciation (20,677) (13,570) (8,947) (4,414) (18) (47,626)
Amortisation (1,095) (1,165) (1,405) (6,252) (154) (10,071)
Operating profit / (loss) before NZ
IFRS 16 43,334 6,101 25,378 (13,635) (5,509) 55,669
Adjustment for NZ IFRS 16 9,960 6,325 2,821 3,837
- 22,943
Operating profit / (loss) 53,294 12,426 28,199 (9,798) (5,509) 78,612
Financing expenses (15,143) (16,187) (7,024) (17,803) (36) (56,193)
Taxation expenses (11,379) 530 (5,486) 8,626 1,553 (6,156)
Net profit / (loss) after taxation
(NPAT)
26,772 (3,231) 15,689 (18,975) (3,992) 16,263
Current assets 34,805 17,402 17,370 10,107 - 79,684
Non-current assets excluding deferred
tax 351,564 367,547 287,112 285,724 - 1,291,947
Total assets excluding deferred tax 386,369 384,949 304,482 295,831 - 1,371,631
Capital expenditure including
intangible assets
42,813 20,623 10,174 12,170 85,780
Restaurant Brands New Zealand Limited
Page | 12
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
31 December 2022
$NZ000’s
New Zealand
Australia
Hawaii
California
Corporate
support
function Total
Business segment
Store sales revenue 529,157 283,397 247,459 179,035 - 1,239,048
Other revenue 56,961 1,329 880 - - 59,170
Total revenue 586,118 284,726 248,339 179,035 - 1,298,218
Store EBITDA before general and
administration expenses, NZ IFRS
16 and other items
89,405
31,184
42,304
17,123
-
180,016
General and administration expenses (16,521) (14,293) (10,862) (9,024) (3,896) (54,596)
72,884 16,891 31,442 8,099 (3,896) 125,420
Other income - 1,622 - 843 - 2,465
Other expenses - (667) - (1) (4,535) (5,203)
Impairment charges (698) (380) - 916 - (162)
Depreciation (20,235) (12,480) (7,976) (4,172) (24) (44,887)
Amortisation (1,538) (1,308) (1,378) (5,784) (110) (10,118)
Operating profit / (loss) before NZ
IFRS 16
50,413
3,678
22,088
(99)
(8,565)
67,515
Adjustment for NZ IFRS 16
9,452
4,945
2,450
2,343
-
19,190
Operating profit / (loss) 59,865 8,623 24,538 2,244 (8,565) 86,705
Financing expenses (13,496) (12,838) (6,092) (12,090) (12) (44,528)
Taxation expenses (12,113) 1,329 (4,758) 3,155 2,293 (10,094)
Net profit / (loss) after taxation
(NPAT)
34,256 (2,886) 13,688 (6,691) (6,284) 32,083
Current assets
37,044
16,964
16,980
9,207
-
80,195
Non-current assets excluding deferred
tax
334,878 367,451 286,843 304,277 - 1,293,449
Total assets excluding deferred tax 371,922 384,415 303,823 313,484 - 1,373,644
Capital expenditure including
intangible assets
43,078
23,105
14,402
10,725
-
91,310
The general and administrative expenses in the segmental reporting note include EBITDA related to transactions with Independent Franchisees
of $7.7 million (Dec 2022: $6.1 million) and exclude depreciation and amortisation expense of $0.9 million (Dec 2022: $1.0 million) and NZ IFRS
16 adjustments of $0.3 million (Dec 2022: $0.3 million).
1.1 Reconciliation between operating profit and net profit after taxation excluding NZ IFRS 16
$NZ000’s 31 December 2023 31 December 2022
Operating profit 78,612 86,705
Financing expenses (56,193) (44,528)
Net profit before taxation 22,419 42,177
Taxation expense (6,156) (10,094)
Net profit after taxation
16,263
32,083
Add back net financing impact of NZ IFRS 16 12,359 14,208
Less taxation expense on NZ IFRS 16 (2,792) (3,934)
Net profit after taxation excluding NZ IFRS 16 25,830 42,357
Restaurant Brands New Zealand Limited
Page | 13
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
2. Revenue and expenses
REVENUE
Store sales revenue
Store sales revenue from the sale of goods is recognised at point of sale, measured at the fair value of the consideration received, net of returns,
discounts, and excluding GST.
Other revenue
Other revenue includes sale of goods and services to independent franchisees. Sale of goods, including cost of freight, are recognised similar to
store sales revenue. Sale of services is recognised over time as the independent franchisee simultaneously receives and consumes the benefit
provided by the Group. Royalties received are based on the revenue generated by the independent franchisees, recognised over time.
Also included in other revenue is revenue related to the sale of new stores developed and constructed under contract to franchisees. Under the
terms of the contracts, the Group is contractually restricted from redirecting the properties to another customer and has an enforceable right to
payment for work done. Revenue from construction of stores is therefore recognised over time using a cost-to-cost method (i.e. based on the
portion of the contracted costs incurred for work performed to date relative to the estimated total cost).
OPERATING EXPENSES
Royalties paid
$NZ000’s 31 Dec 2023 31 Dec 2022
Royalties paid 78,126 72,393
Royalties are recognised as an expense as revenue is earned.
Wages and salaries
$NZ000’s 31 Dec 2023 31 Dec 2022
Wages and salaries 373,860 347,957
Decrease / (Increase) in liability for long service leave 58 (455)
373,918 347,502
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave, that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the
end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
Lease expenses
$NZ000’s 31 Dec 2023 31 Dec 2022
Lease expenses 10,954 7,960
This relates to short term and variable lease costs included in the consolidated statement of comprehensive income not included in NZ IFRS 16
costs.
Restaurant Brands New Zealand Limited
Page | 14
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
Other income
$NZ000’s 31 Dec 2023 31 Dec 2022
Net insurance recovery 4,700 1,623
Gain on business acquisition - 842
4,700 2,465
Insurance recovery
This relates to the insurance proceeds received in 2023 following the Maui wildfires in Hawaii and flood damage in Australia. The insurance
proceeds were higher than the carrying value of assets. Proceeds of $5.1 million was received off-set by $0.4 million of asset write offs.
Gain on business acquisition
There were no acquisitions in 2023. The amount of $0.8 million recorded in 2022 is the result of the net assets included in an acquisition of a store
in California in 2022 being higher than the net consideration paid.
Other expenses
$NZ000’s 31 Dec 2023 31 Dec 2022
ERP system implementation
- 4,014
Store closures 596 1,047
Net impairment expense on property, plant, and equipment,
intangible assets and right of use assets
8,985 162
Other
1,250 142
Total other expenses 10,831 5,365
Store closures
Costs relating to the closure of a Taco Bell store in Australia in 2023 and 2022 following the decision to permanently close the store including the
write-off of the net book value of the store’s fixed assets.
Net impairment expense
An impairment review of property, plant and equipment, intangible assets and right of use assets of stores at year end resulted in a number of
stores with impairment indicators. Based on further analysis an impairment charge of $9.0 million was recognised during the year (Dec 2022:
$0.2 million, net of impairment reversals). This included two stores in Australia with an impairment charge of $2.6 million, one store in Hawaii of
$0.6 million and nine stores in California of $5.8 million. Refer to Notes 13 and 15.
Other
Periodically, the Group is involved in disputes and court proceedings resulting from the Group’s on-going operations. In 2023, the Group incurred
expenses related to legal proceedings which amounted to $1.3 million (Dec 2022: nil).
Restaurant Brands New Zealand Limited
Page | 15
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
3. Earnings per share
31 Dec 2023 31 Dec 2022
Basic and diluted earnings per share
Profit after taxation attributable to the shareholders ($NZ000’s) 16,263 32,083
Weighted average number of shares on issue (000’s)
124,759 124,759
Basic earnings per share (cents)
13.04 25.72
Basic earnings per share (EPS) is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period. Diluted EPS reflects any commitments the Company has to issue shares in the
future that would decrease EPS. There are no commitments of this nature currently in place.
FUNDING AND EQUITY
4. Loans
$NZ000’s 31 Dec 2023 31 Dec 2022
Secured bank loans denominated in:
NZD 34,000 29,000
AUD
95,730 92,821
USD
159,684 159,055
Secured bank loans 289,414 280,876
A loan is classified as current if it is due for repayment within 12 months of the Group’s year end.
Current
- -
Non-current 289,414 280,876
Secured bank loans 289,414 280,876
$NZ000’s
Secured bank loans 289,414 280,876
Less prepaid facility fees (452) (595)
Loan balance 288,962 280,281
Included in the loans balance in the consolidated statement of financial position is $0.5 million ( Dec 2022: $0.6 million) relating to prepaid facility
fees that are being amortised over the term of the loan facilities.
Facilities
On 15 December 2022 the Group renewed its bank facilities as the majority of the 2020 facility was expiring on 1 May 2023. The facilities are split
between NZD, USD and AUD tranches, most of the tranches are four-year terms with the remainder expiring in five years.
The Group has loan facilities in place totalling $376.1 million with the following financial institutions:
• Westpac Banking Corporation - $NZ20.0 million and $A70.0 million facility with $NZ12.0 million and $A42.0 million expiring on 14
December 2026 with the remaining $NZ8.0 million and $A28.0 million expiring on 14 December 2027,
• Bank of China - $NZ20.0 million and $A40.0 million facility with $NZ12.0 million and $A24.0 million expiring on 14 December 2026 with
the remaining $NZ8.0 million and $A16.0 million expiring on 14 December 2027,
• J P Morgan - $US75.0 million facility with $US45.0 million expiring on 14 December 2026 with the remaining $US30.0 million expiring
on 14 December 2027, and
• Rabobank - $NZ20.0 million and $US50.0 million facility with $NZ12.0 million and $US30.0 million expiring on 14 December 2026 with
the remaining $NZ8.0 million and $US20.0 million expiring on 14 December 2027.
Restaurant Brands New Zealand Limited
Page | 16
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
Security
The Group's AUD, USD and NZD loan facilities are supported by a Common Terms Deed entered into by Restaurant Brands New Zealand Limited
and its subsidiary companies. The Common Terms Deed includes a negative pledge and cross guarantees between the guaranteeing subsidiaries
in favour of qualifying lenders.
The Group also has indemnity guarantees of $4.5 million across various properties leased in Australia, a standby letter of credit of $4.0 million in
California, and a standby letter of credit in Hawaii of $0.5 million.
The Group is subject to a number of externally imposed bank covenants as part of the terms of its secured bank loan facilities.
The most significant covenants relating directly to capital management are the ratio of total debt to earnings before interest, tax and amortisation
(EBITA) and restrictions relating to acquiring its own shares.
The specific covenants relating to financial ratios the Group is required to meet under the facility agreements are:
• debt coverage ratio (i.e. net debt to EBITDA),
• fixed charge coverage ratio (EBITDAL to fixed charges), with EBITDAL being EBITDA before lease costs, fixed charges comprising
interest and lease costs,
• guaranteeing Group assets ratio (i.e. total guaranteeing Group tangible assets to total consolidated Group tangible assets), and
• guaranteeing Group earnings ratio (i.e. non-guaranteeing Group EBITDA to the consolidated Group EBITDA).
These ratios exclude the impact of NZ IFRS 16 – Leases but include lease payments treated as operating expenses (as was the treatment prior
to the adoption of NZ IFRS 16).
The covenants are reported to the bank on a six monthly basis, whilst the Board reviews covenant compliance on a monthly basis.
There have been no breaches of the covenants during the current financial year (Dec 2022: no breaches). There are also no forecast breaches of
covenants.
For more information about the Group’s exposure to interest rate and foreign currency risk see note 6.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any
difference between the proceeds (net of transaction costs) and the redemption value, if any, is recognised in the consolidated statement of
comprehensive income over the period of the borrowings using the effective interest method.
Financing expense
$NZ000’s 31 Dec 2023 31 Dec 2022
Financing expense – leases (NZ IFRS 16)
35 ,302 33,399
Financing expense – bank 20,891 11,129
Financing expenses 56,193 44,528
Financing expenses comprise: interest payable on borrowings calculated using the effective interest rate method; interest received on funds
invested calculated using the effective interest rate method; lease interest (note 14); foreign exchange gains and losses; gains and losses on
certain financial instruments that are recognised in profit or loss in the consolidated statement of comprehensive income; unwinding of the discount
on provisions and impairment losses on financial assets.
Restaurant Brands New Zealand Limited
Page | 17
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
5. Financial assets and financial liabilities
Financial Assets
The Group classifies its financial assets as those to be measured at amortised cost (loans, receivables, and cash), and those to be measured
subsequently at fair value either through OCI or through profit or loss (derivative financial instruments).
Financial assets held at amortised cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are
included in current assets, except for maturities greater than 12 months after the statement of financial position date. These are classified as non-
current assets. The Group’s loans and receivables comprise trade receivables, other debtors and cash and cash equivalents in the consolidated
statement of financial position.
Financial assets that are stated at cost or amortised cost are reviewed individually once a year date to determine whether there is objective
evidence of impairment. Any impairment losses are recognised in profit or loss in the consolidated statement of comprehensive income.
Financial liabilities
Loans and borrowings are initially recognised at fair value plus transaction costs and subsequently measured at amortised cost, and trade and
other payables which are initially recognised at fair value and subsequently measured at amortised cost.
Financial instruments
A financial instrument is recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are
derecognised when the Group’s contractual rights to the cash flows from the financial assets expire or when the Group transfers the financial asset
to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of financial assets
are accounted for at trade date, i.e. the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised when
the Group’s obligations specified in the contract expire or are discharged or cancelled.
Derivative financial instruments
The Group might use derivative financial instruments to manage the exposures that arise due to movements in foreign currency exchange rates
and interest rates arising from operational, financing and investment activities. The Group does not hold derivative financial instruments for trading
purposes. Derivatives that do not qualify for hedge accounting are accounted for at fair value through profit or loss. The Group did not have any
derivative financial instrument as at 31 December 2023 (Dec 2022: nil).
Financial assets and financial liabilities at amortised cost by category
$NZ000’s 31 Dec 2023 31 Dec 2022
Loans and receivables at amortised cost
Trade receivables 12,135 6,023
Other receivables 3,372 3,416
Cash and cash equivalents 31,584 29,869
47,091 39,308
Financial liabilities at amortised cost
Loans (excluding prepaid facility fees) 289,414 280,876
Trade and other payables (excluding indirect and other taxes and
employee benefits)
89,583 81,497
378,997 362,373
Restaurant Brands New Zealand Limited
Page | 18
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
6. Financial risk management
Exposure to market risk (credit, interest rate and foreign currency risk) as well as liquidity and capital risk, arises in the normal course of the
Group’s business. Derivative financial instruments may be used to hedge exposure to fluctuations in foreign currency exchange rates and
interest rates.
(a) Foreign currency risk
The Group is exposed to foreign currency risk on purchases that are denominated in a currency other than the New Zealand dollar. The
currencies giving rise to this risk are primarily Australian dollars and United States dollars.
The direct exposure to foreign currency risk is small and is primarily confined to raw material purchases, some items of property, plant and
equipment and some franchise fee payments. Where any one item is significant, and considering specific circumstances, the Group may assess
hedging its currency risk exposure.
The Group has an indirect exposure to foreign currency risk on some of its locally sourced ingredients, where those ingredients in turn have a
high imported component. Where this is significant the Group contracts to a known purchase price with its domestic supplier based on a
forward
cover position taken by that supplier on its imported components.
The Group has a foreign currency risk on its assets and liabilities that are denominated in Australian and US dollars as part of its Australia and
US investments.
There is currently no hedging cover in place.
(b) Interest rate risk
The Group’s main interest rate risk arises from bank loans. The Group’s loans are at fixed interest rates with terms up to 90 days. The interest
rates are reset at the end of each term.
As such, at balance date, the Group's loans of $289.4 million (Dec 2022: $280.9 million) are exposed to
repricing within the next 12 months. Based on a number of scenarios, the Group calculates the impact on profit or loss of a defined interest rate
shift. Based on these scenarios the maximum loss potential is assessed by management as to whether it is within acceptable limits.
Where necessary the Group may hedge its exposure to changes in interest rates primarily through the use of interest rate swaps. There are
guidelines as to the minimum prescribed level of hedging (zero to 100 percent), set out by the Board, however the Board reviews all swaps
before they are entered
into. The Group did not have any derivative financial instruments as at 31 December 2023 (Dec 2022: nil).
(c) Liquidity risk
In respect of the Group’s cash balances, non-derivative financial liabilities, the following table analyses the
amounts into relevant maturity
groupings based on the remaining period at balance date to the contractual maturity date, along with their effective interest rates at balance date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
$NZ000’s
Effective
interest rates
Total Less than
1 year
Between
1 and 5 years
31 Dec 2023
Cash on hand - 691 691 -
Cash at bank 0.35% 30,893 30,893 -
Bank term loan – principal (NZD) 8.28% (34,000) - (34,000)
Bank term loan – principal (AUD) 6.50% (95,730) - (95,730)
Bank term loan – principal (USD) 7.34% (159,684) - (159,684)
Bank term loan – expected interest 7.17% (79,396) (20,522) (58,874)
Trade and other payables (excluding indirect and
other taxes and employee benefits)
- (89,583) (89,583)
-
(426,809) (78,521)
(348,288)
31 Dec 2022
Cash on hand - 678 678 -
Cash at bank 0.35% 29,191 29,191 -
Bank term loan – principal (NZD) 7.27% (29,000) - (29,000)
Bank term loan – principal (AUD) 5.25% (92,821) - (92,821)
Bank term loan – principal (USD) 6.34% (159,055) - (159,055)
Bank term loan – expected interest 6.07% (82,323) (16,923) (65,400)
Trade and other payables (excluding indirect and
other taxes and employee benefits)
-
(81,497)
(81,497)
-
(414,827) (68,551) (346,276)
Prudent liquidity risk management implies the availability of funding through adequate amounts of committed credit facilities. The Group aims to
maintain flexibility in funding by keeping committed credit lines available.
The Group has a negative working capital balance as the nature of the business results in most sales conducted on a cash basis. The Group has
bank funding facilities, excluding overdraft facilities, of $376.1 million (Dec 2022: $374.9 million) available at variable rates. The amount undrawn
at 31 December 2023 was $86.7 million (Dec 2022: $94.0 million) and therefore the Group has the ability to fully pay debts as they fall due.
Restaurant Brands New Zealand Limited
Page | 19
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
The Group has lease liabilities with future cash payments as disclosed in the table below:
$NZ000’s 31 Dec 2023 31 Dec 2022
Within one year 65,827 62,909
One to five years 252,695 243,425
Beyond 5 years 838,967 870,703
1,157,489 1,177,037
This includes future lease options that the Group currently expects to exercise and is not discounted for the future nature of payments, therefore,
the amounts in the table do not reflect the Group’s future contractual minimum payments.
(d) Credit risk
Credit risk arises from cash deposits with banks and financial institutions and outstanding trade and other receivables.
No collateral is required in respect of financial assets. Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. The nature of the business results in most sales being conducted on a cash basis that significantly reduces the risk that the Group
is exposed to. The Group’s bankers are used for investing and cash handling purposes.
There were no financial assets past due nor impaired at the balance date (Dec 2022: nil).
At 31 December 2023 there were no significant concentrations of credit risk and the maximum exposure to credit risk is represented by the carrying
value of each financial asset in the consolidated statement of financial position (Dec 2022: nil).
(e) Fair values and set-off
The carrying values of bank loans are the fair value of these liabilities. A Group set-off arrangement is in place between certain bank accounts
operated by the Group.
Sensitivity analysis
In managing interest rate and currency risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings. Over the
longer term, however, permanent changes in foreign exchange and interest rates on a weighted average balance will have an impact on profit.
At 31 December 2023 it is estimated that a general increase of one percentage point in interest rates would decrease the Group profit before
income tax by approximately $2.9 million (Dec 2022: $2.8 million), however equity would decrease $2.2 million (Dec 2022: $2.1 million). A one
percentage point decrease in interest rates would increase the Group profit before income tax by approximately $2.9 million (Dec 2022: $2.8
million),
however equity would increase by $2.2 million (Dec 2022: $2.1 million).
A general increase of one percentage point in the value of the New Zealand dollar against other foreign currencies would have minimal impact on
the cost of the Group’s directly imported ingredients denominated in foreign currencies.
(f) Capital risk management
The Group’s capital comprises share capital, reserves, retained earnings.
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue to operate as a going concern, and to
maintain an
optimal capital structure commensurate with risk and return and reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, or issue new shares.
Restaurant Brands New Zealand Limited
Page | 20
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
7. Equity and reserves
Share capital
31 Dec 2023
Number
31 Dec 2023
$NZ000’s
31 Dec 2022
Number
31 Dec 2022
$NZ000’s
124,758,523 154,565 124,758,523 154,565
The issued and authorised capital of the Company represents ordinary fully paid up shares. The par value is nil (Dec 2022: nil). All issued shares
carry equal rights in respect of voting and the receipt of dividends, and upon winding up rank equally with regards to the Company’s residual
assets.
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.
Foreign currency translation reserve
$NZ000’s 31 Dec 2023 31 Dec 2022
9,890 8,935
The foreign currency translation reserve comprises all exchange rate differences arising from translating the financial statements of the foreign
currency operations.
WORKING CAPITAL
8. Inventories
$NZ000’s 31 Dec 2023 31 Dec 2022
Raw materials and consumables 19,761 25,140
Inventories recognised as an expense during the period ended 31 December 2023 amounted to $403.5 million (Dec 2022: $368.4 million). This is
included in cost of goods sold.
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price less the estimated costs
of marketing, selling and distribution. The cost of inventories is based on the first-in first-out method and includes expenditure incurred in acquiring
the inventories and bringing them to their existing condition and location. The cost of inventories consumed is recognised as an expense and
included in cost of goods sold in the consolidated statement of comprehensive income.
9. Trade and other receivables
$NZ000’s 31 Dec 2023 31 Dec 2022
Trade receivables 12,135 6,023
Prepayments 8,232 6,131
Other receivables 3,372 3,416
23,739 15,570
The carrying amount of the Group’s trade and other receivables are denominated in the following currencies:
NZD 10,205 8,969
AUD 6,960 2,677
USD 6,574 3,924
23,739 15,570
The carrying value of trade and other receivables approximates fair value.
Trade and other receivables are initially recognised at fair value. They are subsequently adjusted for impairment losses when required. Discounting
is not applied to receivables where collection is expected to occur within the next twelve months. The Group currently does not have trade
receivables where collection is expected to occur beyond the next twelve months.
Restaurant Brands New Zealand Limited
Page | 21
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
10. Cash and cash equivalents
$NZ000’s 31 Dec 2023 31 Dec 2022
Cash on hand 691 678
Cash at bank 30,893 29,191
31,584 29,869
The carrying amount of the Group’s cash and cash equivalents are denominated in the following currencies:
NZD 8,494 6,702
AUD 8,147 8,634
USD 14,943 14,533
31,584 29,869
Included in cash and cash equivalents are credit card receipts and delivery receipts that are in transit at balance date.
11. Land held for development
$NZ000’s 31 Dec 2023 31 Dec 2022
Land held for development 12,431 7,084
Relates to land that has been purchased for use in developing new stores in the future. Land held for development is measured at cost.
12. Trade and other payables
$NZ000’s 31 Dec 2023 31 Dec 2022
Trade payables 55,236 54,099
Other payables and accruals 34,347 27,398
Employee benefits 31,438 29,467
Indirect and other taxes 10,318 8,326
131,339 119,290
The carrying amount of the Group’s trade and other payables are denominated in the following currencies:
NZD 74,859 63,869
AUD 23,507 22,494
USD 32,973 32,927
131,339 119,290
The carrying value of trade payables and other payables approximates fair value.
Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.
Restaurant Brands New Zealand Limited
Page | 22
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
LONG TERM ASSETS
13. Property, plant and equipment
Leasehold
Plant,
equipment
Motor
Capital
work in
$NZ000’s Land improvements and fittings vehicles progress Total
Cost
Balance as at 31 December 2021
4,452 325,029 121,285 2,172 30,459 483,397
Additions – – – – 82,572 82,572
Acquisition of business – – 90 – 96 186
Transfers from work in progress – 59,021 32,623 304 (91,948) –
Disposals – (5,227) (3,250) (207) – (8,684)
Movement in exchange rates 42 6,627 2,579 28 752 10,028
Balance as at 31 December 2022 4,494 385,450 153,327 2,297 21,931 567,499
Additions
– – – –
78,871 78,871
Transfers from work in progress
–
51,049 26,005 330 (77,384) –
Disposals
–
(7,107) (4,192) (316) (212) (11,827)
Movement in exchange rates
13 391 50 1 5 460
Balance as at 31 December 2023 4,507 429,783 175,190 2,312 23,211 635,003
Accumulated depreciation
Balance as at 31 December 2021 – (136,154) (66,712) (1,323) – (204,189)
Charge – (27,922) (16,116) (403) – (44,441)
Disposals – 3,429 2,651 175 –
6,255
Movement in exchange rates – (1,258) (1,206) (13) –
(2,477)
Balance as at 31 December 2022
– (161,905) (81,383) (1,564) – (244,852)
Charge –
(28,551) (17,786) (380)
–
(46,717)
Disposals –
4,511 2,258 281
–
7,050
Movement in exchange rates –
15 32 (1)
– 46
Balance as at 31 December 2023 – (185,930) (96,879) (1,664) – (284,473)
Impairment
Balance as at 31 December 2021 – (2,155) (305) – – (2,460)
Utilised/disposed –
2,446 13
– – 2,459
Impairment –
(3,301) –
– – (3,301)
Movement in exchange rates –
(164) 121
– – (43)
Balance as at 31 December 2022 – (3,174) (171) – – (3,345)
Utilised/disposed –
1,368 6
– (56) 1,318
Impairment –
(5,701) (1,085)
– (75)
(6,861)
Movement in exchange rates – 96 31 – 4 131
Balance as at 31 December 2023 – (7,411) (1,219) –
(127)
(8,757)
Carrying amounts
Balance as at 31 December 2021
4,452 186,720 54,268 849 30,459 276,748
Balance as at 31 December 2022 4,494 220,371 71,773 733 21,931 319,302
Balance as at 31 December 2023 4,507 236,442 77,092 648
23,084
341,773
Restaurant Brands New Zealand Limited
Page | 23
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
Depreciation expense
$NZ000’s 31 Dec 2023 31 Dec 2022
Depreciation expense 46,717 43,935
Disposal of property, plant and equipment
Net loss on disposal of property, plant and equipment (included in depreciation
expense)
(909) (949)
Net loss on disposal of property, plant and equipment (included in other items) (1,039) -
Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses.
Depreciation is calculated on a straight line basis to allocate the cost of an asset, less any residual value, over its estimated useful life. Leased
assets are depreciated over the shorter of the lease term and their useful lives. The estimated useful lives of property, plant and equipment are
as follows:
Leasehold improvements 5 - 25 years
Plant and equipment 3 - 12.5 years
Motor vehicles 4 - 5 years
Furniture and fittings 3 - 10 years
Computer equipment 3 - 10 years
Depreciation methods, useful lives and residual values are reassessed at the reporting date within cost of sale and general and administration
expenses.
Depreciation expense is included in the consolidated statement of comprehensive income within cost of goods sold, and general and
administration expenses.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss in the
consolidated statement comprehensive income.
Significant judgements and estimates – store impairment testing
Impairment testing involves significant estimates and judgements. The outcome of impairment tests may result in a material adjustment to the
carrying amounts of the Group's assets.
Store assets include property, plant and equipment, right of use assets and intangible assets. The Group reviews store assets for impairment
indicators at each reporting period. Impairment is assessed at the assets’ cash-generating unit (CGU) level, which is the smallest group of
assets that generates independent cash inflows. Management has determined that individual stores are cash generating units for the purpose
of assessing impairment for store assets. An impairment loss is recognised in the consolidated statement of comprehensive income when the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is based on the CGU’s fair value less costs of disposal or
value in use.
The stores showing an impairment using the value in use method are retested using fair value less cost of disposal and the higher result of the
two is applied. The value in use calculation evaluates recoverability based on the store’s forecasted cash flows, which incorporate estimated
sales growth and expected margin based upon the latest plans for the store. Fair value less costs of disposal was determined by discounting
the future net cash flows generated from the continuing use of the CGUs, less disposal cost of 1% of the recoverable amount. If, in a subsequent
period, the amount of the impairment decreases due to an increase in the service potential of an asset after the impairment was recognised, the
reversal of the previously recognised impairment is recognised in the consolidated statement of comprehensive income.
Key assumptions in the determination of recoverable amount are:
• the estimate of future cash flows of the store incorporating estimated sales growth and expected margin.
• the discount rate based on the weighted average cost of capital reflecting the current market assessment of the time value of money
and the business risk of the cash generating units.
• The terminal growth rate assumption reflects the long-term projected inflation relevant to the specific region/market.
Estimates of future cash flows are highly subjective being based on management’s judgement and can be significantly impacted by changes in
the business or economic conditions.
Following a review of store performance and consideration of other impairment indicators, the Group determined that there were stores across
all four segments that required a calculation of the recoverable amount as there were impairment indicators that mainly arose due to inflationary
pressures on the financial performance.
Restaurant Brands New Zealand Limited
Page | 24
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
The key assumptions used for the value in use and fair value less cost of disposal calculation are as follows:
31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23
31-Dec-22 31-Dec-22 31-Dec-22 31-Dec-22
Percentage
used
Percentage
used
Percentage
used
Percentage
used
Percentage
used
Percentage
used
Percentage
used
Percentage
used
(%) (%) (%) (%) (%) (%) (%) (%)
NZ Australia Hawaii California NZ Australia Hawaii California
Sales growth 2.7 – 20.4 -4.0 – 14.8 -24.0 – 10.5 3.0 – 15.0 1.9 – 44.6 2.5 – 17.2 -8.5 – 21.9 -19.7 – 20.0
EBITDA margin -18.6 – 9.6 -38.4 – 10.0 -12.0 – 8.8 -62.2 – 8.8 -11.2 – 11.5 1.6 – 6.9 0.8 – 6.4 -8.1 – 3.2
EBITDA margin
terminal year
-14.1 – 13.2 -15.1 – 12.1 0.9 – 9.3 -12.8 – 9.5 3.5 – 16.5 11.0 6.8 – 9.3 3.5 – 8.2
Terminal growth rate 2.1 2.5 2.3 2.3 1.9 2.5 2.3 2.3
Discount rate* 8.5 – 9.4 7.3 9.1 7.5 9.6 – 11.5 8.9 11.0 11.0
Number of stores
impaired
- 2 1 9 5 2 4 4
Impairment value $NZ
millions**
- $2.60 $0.60 $5.80 $1.40 $0.40 - $1.50
*The post tax discount rate in the prior year is on a pre-IFRS 16 basis while the current year is on a post-IFRS 16 basis.
**Included in the impairment value of $9.0 million in 2023 is $2.1 million relating to the impairment of intangible assets
Based on the calculations, impairment of $9.0 million was recognised during the financial year (Dec 2022: $3.3 million) against property, plant
and equipment and intangible assets in the consolidated statement of comprehensive income as part of other expenses. This comprised seven
stores with recoverable amounts lower than their respective carrying value of assets, and five stores impaired due to closure.
The Group also evaluated stores assets which have been previously impaired to determine whether the conditions that gave rise to the initial
impairments still existed at the balance date. A recalculation is performed to reassess the recoverable amount and check the headroom exists.
For the stores that have demonstrated positive sustainable trading results, management may conclude there is sufficient evidence to support an
impairment reversal. There was no impairment reversal recognised for the year ended 31 December 2023 (Dec 2022: $3.1 million).
Restaurant Brands New Zealand Limited
Page | 25
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
14. Leases
Key estimates and judgements
There are several judgements and estimates in calculating the future lease liabilities and right of use asset value. These include:
• incremental borrowing rate. The Group engages an independent valuation expert to establish the incremental borrowing rates
applied during the period.
• lease terms, including any rights of renewal expected to be exercised. The Group has assumed that all rights of renewal are expected
to be exercised which is consistent with the Group's strategy and previous leases. This judgement has been applied unless a store
closure or a decision to relocate a store is known when valuing the lease.
Right of use assets (ROU assets)
$NZ000’s 31 Dec 2023 31 Dec 2022
Opening balance 607,765 576,527
Depreciation (42,615) (41,282)
Modifications to existing right of use assets 4,215 (984)
Additions 16,388 53,834
Foreign exchange movement 1,896 19,670
Closing balance 587,649 607,765
Additions relate to new leases entered into by the Group.
The Group leases relate to land and buildings. Rental contracts are typically made for fixed periods of 1 to 50 years but may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do
not impose any covenants, but leased assets may not be used as security for borrowing purposes.
Under NZ IFRS 16, leases are recognised as a right of use asset and a corresponding lease liability. Each lease payment is allocated between the
lease liability and the finance cost. The finance cost is charged to the statement of comprehensive income over the lease period so as to produce
a constant periodic rate of interest on the remaining balance of the liability for each period. The right of use asset is depreciated over the shorter
of the asset's useful life and the lease term on a straight line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed
payments and known fixed lease increases, less any lease incentives receivable. Right of use assets are measured at cost comprising the amount
of the initial measurement of lease liability and any restoration costs. These assets are subsequently depreciated using the straight line method
from the commencement date to the end of the lease term.
The Group is exposed to potential future increases in variable lease payments based on an index, rate or market rent review, which are not included
in the lease liability or right of use asset until they take effect.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee's incremental borrowing
rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
The Group has applied the recognition exemption allowed by the standard in respect of short-term and low value leases. Payments associated
with short term leases and leases of low value assets are recognised on a straight line basis as an expense in the statement of comprehensive
income. Short term leases are leases with a lease term of 12 months or less. Low value assets comprise IT equipment and small items of office
furniture.
Lease liabilities
$NZ000’s 31 Dec 2023 31 Dec 2022
Opening balance 714,931 668,681
Cash flow payments (65,381) (61,331)
Interest 35,117 33,034
Modifications to existing lease liabilities 3,493 (106)
Additions 16,340 53,642
Foreign exchange movement 1,788 21,011
Closing balance 706,288 714,931
Current lease liabilities 31,984 29,599
Non-current lease liabilities 674,304 685,332
Closing balance 706,288 714,931
The weighted average incremental borrowing rate applied to lease additions during the year was 7.4% (Dec 2022: 6.4%).
Restaurant Brands New Zealand Limited
Page | 26
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
15. Intangible assets
Franchise
Concept
development
Acquired
software
$NZ000’s Goodwill fees costs costs Total
Cost
Balance as at 31 December 2021
274,095 93,116 801 12,364 380,376
Additions
– 1,523 – 131 1,654
Acquisition of business
63 1,778 – – 1,841
Disposals
– (283) – (28) (311)
Reclassification from property, plant and
Equipment
–
–
–
(95)
(95)
Movement in exchange rates
12,253 5,651 – – 17,904
Balance as at 31 December 2022
286,411 101,785 801 12,372 401,369
Additions – 813 – 749 1,562
Disposals
– (372) – (1,427) (1,799)
Movement in exchange rates
1,029 416 – 7 1,452
Balance as at 31 December 2023
287,440 102,642 801 11,701 402,584
Accumulated amortisation and impairment
Balance as at 31 December 2021
(831) (20,276) (741) (10,312) (32,160)
Charge
–
(9,092) (5) (1,023) (10,120)
Disposals
– 221 – 28 249
Movement in exchange rates
–
(1,001)
– (1)
(1,002)
Balance as at 31 December 2022
(831) (30,148) (746) (11,308) (43,033)
Charge
– (9,497) – (574) (10,071)
Disposals
– 409 – 1,357 1,766
Impairment
– (2,124) – – (2,124)
Movement in exchange rates
– 95 – (1) 94
Balance as at 31 December 2023
(831) (41,265) (746) (10,526) (53,368)
Impairment charges are recognised in other expenses in the consolidated statement of comprehensive income.
Carrying amounts
Balance as at 31 December 2021
273,264 72,840 60 2,052 348,216
Balance as at 31 December 2022 285,580 71,637 55 1,064 358,336
Balance as at 31 December 2023 286,609 61,377 55 1,175 349,216
Restaurant Brands New Zealand Limited
Page | 27
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
Goodwill
Goodwill arises on the acquisition of subsidiaries and business combinations. Goodwill is measured at cost less accumulated impairment losses
and has an indefinite useful life. Goodwill is allocated to cash generating units and is tested annually for impairment. Where the Group disposes
of an operation within a CGU, the goodwill associated with the operation disposed of is part of the gain or loss on disposal. Goodwill disposed of
in this manner is measured based on the relative values of the operation disposed of and the portion of the CGU retained.
Franchise fees
Franchise fees are costs incurred in obtaining franchise rights or licences to operate quick service and takeaway restaurant concepts. They include
for example, the initial fee paid to a system franchisor when a new store is opened. These are measured at cost less accumulated amortisation
and accumulated impairment costs. Amortisation is on a straight line basis over the life of the applicable franchise or licence agreement.
Concept development costs
Concept development costs include certain costs, other than the direct cost of obtaining the franchise, associated with the establishment of quick
service and takeaway restaurant concepts. These include, for example, professional fees and consulting costs associated with the establishment
of a new brand or business acquisition. These costs are capitalised where the concept is proven to be commercially feasible and the related future
economic benefits are expected to exceed those costs with reasonable certainty. These are subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over the period which future economic benefits
are reasonably expected to be derived.
Acquired software costs
Software costs have a finite useful life. Software costs are capitalised and amortised on a straight line basis over the estimated economic life of
3- 8 years.
Amortisation
Amortisation charge is recognised in cost of goods sold in the consolidated statement of comprehensive income.
$NZ000’s 31 Dec 2023 31 Dec 2022
Amortisation of intangible assets 10,071 10,120
Significant judgements and estimates - impairment testing
Impairment testing involves significant estimates and judgements. The outcome of impairment tests can result in a material adjustment to the
carrying amount of the Group's goodwill balances.
For the purpose of impairment testing, goodwill is allocated to the Group’s operating brands which represent the CGU within the Group at which
the goodwill is monitored for internal management purposes.
Allocation of goodwill by CGU:
$NZ000’s 31 Dec 2023 31 Dec 2022
KFC Australia 114,434 114,034
KFC New Zealand 6,599 6,593
Pizza Hut New Zealand 7,434 7,434
Pizza Hut and Taco Bell Hawaii 128,097 127,592
KFC and Taco Bell California 30,045 29,927
Total goodwill 286,609 285,580
In 2023 the recoverable amount of each CGU was based on fair value less costs of disposal approach. Fair value less costs of disposal was
determined by discounting the future net cash flows generated from the continuing use of the CGU, less disposal cost of 1-2% of the recoverable
amount. The cash flow inputs are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own
credit risk. Cash flows were projected based on a 2024-2027 financial plan as approved by the Board of Directors.
Restaurant Brands New Zealand Limited
Page | 28
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
The key assumptions used in the impairment testing are as follows:
Brand 31 Dec 2023 31 Dec 2023 31 Dec 2023 31 Dec 2022 31 Dec 2022 31 Dec 2022
Sales growth
2024-2026
%
EBITDA
margin
2024-2027
%
Discount rate*
%
Sales growth
2023-2025
%
EBITDA
margin
2023-2026
%
Discount rate*
%
KFC Australia 8.6 – 9.4 14.8 – 15.9 7.3 4.1 – 5.5 13.0 - 14.7 8.9
KFC New Zealand 6.2 – 7.1 17.5 – 20.7 9.0 4.1 – 6.2 18.7 – 21.0 9.6
Pizza Hut New Zealand 3.8 – 6.9 5.1 11.3 3.1 – 3.2 8.0 – 10.0 12.5
Pizza Hut and Taco Bell Hawaii 3.7 – 6.0 16.9 – 17.7 9.1 2.5 – 8.9 7.7 – 16.9 11.0
KFC and Taco Bell California 1.8 – 10.1 6.0 – 11.0 7.5 2.6 – 3.6 12.4 –15.3 11.0
*The post tax discount rate in the prior year is on a pre-IFRS 16 basis while the current year is on a post-IFRS 16 basis.
The terminal growth rate is calculated on a CGU basis, based on the 2027 year and assumes a continuous sales growth of a minimum of projected
inflation estimates of 2.1% to 2.5% (Dec 2022: 1.9% to 2.5%).
The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external
sources and internal sources including Board approved forecasts (historical data). The key assumptions are detailed below:
• Sales growth - Average annual growth rate over the three-year forecast period based on past performance, management's expectations
of market development, current industry trends and including long-term inflation forecasts for each territory.
• EBITDA margin 2024-2027. Based on past performance and management's expectations for the future. EBITDA growth has been
disclosed as a key assumption as a number of costs are variable and link directly to revenue levels, such as the cost of labour, and
food costs. Other fixed costs of the CGUs, which do not vary significantly with revenue changes, are forecast based on the current
structure of the business, adjusting for inflationary increases.
• Terminal growth rate - This is the growth rate used to extrapolate cash flows beyond the budget period. The rates are consistent with
expected long-term inflation for each territory in which the CGU operates.
• The discount rate - The rate used to reflect specific risks relating to the relevant segments and the countries in which they operate.
In respect of the New Zealand KFC and Pizza Hut brands any reasonably possible change in the key assumptions used in the calculations would
not cause the carrying amount to exceed its recoverable amount.
In respect of the Hawaii brands of Taco Bell and Pizza Hut, any reasonably possible change in the key assumptions used in the calculations would
not cause the carrying amount to exceed its recoverable amount.
In respect of the Australian KFC brand, any reasonably possible change in the key assumptions used in the calculations would not cause the
carrying amount to exceed its recoverable amount.
The financial performance of the California segment has declined in 2023 because of reduced California consumer spending in the face of high
inflation levels. EBITDA margins reduced due to cost pressures which we expect will continue to impact the business into 2024.
No impairment was recognised in this financial year for the California CGU goodwill, however the changes to the below key assumptions would
result in the carrying amount being equal to the recoverable amount (breakeven point).
Key Assumption Sensitivity to Breakeven
Sales turnover A decrease of 15.5%
EBITDA margin A decrease of 1.6%
Discount rate An increase of 1.8%
Restaurant Brands New Zealand Limited
Page | 29
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
OTHER NOTES
16. Taxation
Current and deferred taxation are calculated on the basis of tax rates enacted or substantially enacted at reporting date and are recognised in
profit or loss except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is also
recognised in other comprehensive income or directly in equity, respectively.
Deferred income taxation is recognised in respect of temporary differences between the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements.
Deferred income taxation is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance date and are
expected to apply when the related deferred income tax asset is realised or the deferred tax liability is settled.
Deferred income taxation assets are only recognised to the extent that it is probable that future taxable amounts will be available against which
to utilise those temporary differences.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected
to be settled or recovered.
Tax returns for the Group and the detailed calculations that are required for filing tax returns are not prepared until after the consolidated
financial statements are prepared. Estimates of these calculations are made for the purpose of calculating income tax expense, current tax and
deferred tax balances. Any difference between the final tax outcomes and the estimations made in previous years will affect current year
balances.
The consolidated statement of comprehensive income and statements of cash flows have been prepared exclusive of Goods and Services
Taxation (GST). All items in the consolidated statement of financial position are stated net of GST, with the exception of receivables and
payables, which are inclusive of GST.
Taxation – consolidated statement of comprehensive income
The taxation expense is analysed as follows:
$NZ000’s Note 31 Dec 2023 31 Dec 2022
Total profit before taxation for the period 1 22,419 42,177
Taxation expense 1 (6,156) (10,094)
Net profit after income tax
16,263 32,083
Taxation expense using the Company’s domestic tax rate (28.0%) (6,277) (28.0%) (11,810)
Other (2.6%) (585) 2.4% 1,025
Adjustments due to different jurisdictions 3.1% 706 1.6% 691
Taxation expense (27.5%) (6,156) (23.9%) (10,094)
Taxation expense comprises:
Current tax expense (16,676) (16,311)
Deferred tax expense 10,520 6,217
(6,156) (10,094)
Imputation credits
The below amounts represent the balance of the imputation account as at the end of the reporting period, adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax
• Imputation credits that will be utilised from the payment of dividends recognised as a liability at the reporting date; and
• Imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The current and deferred tax rates for the period were calculated using rates of 28% for New Zealand, 30% for Australia, 28 % for California, and
26% for Hawaii (Dec 2022: 28% New Zealand, 30% Australia, 28% for California and 26% for Hawaii).
$NZ000’s 31 Dec 2023 31 Dec 2022
Imputation credits available for subsequent reporting periods 35,801 31,905
Restaurant Brands New Zealand Limited
Page | 30
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
Taxation – consolidated statement of financial position
The following are the major deferred taxation liabilities and assets recognised by the Group and movements thereon during the current and prior
year:
Assets Liabilities Net
$NZ000’s 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
Property, plant and
equipment
15,646 14,509 (4,456) (7,430) 11,190 7,079
Inventory 51 59 - - 51 59
Trade and other receivable - - (394) (288) (394) (288)
Provisions 6,365 4,901 109 - 6,474 4,901
Intangible assets - 1,232 (3,244) (3,496) (3,244) (2,264)
ROU assets and lease
liabilities
203,693 202,856 (170,275) (172,382) 33,418 30,474
Other 6,692 3,666 - - 6,692 3,666
232,447 227,223 (178,260) (183,596) 54,187 43,627
$NZ000’s
Balance 31
December
2021
Opening
balance on
acquisition
Recognised in
consolidated
statement of
comprehensive
income
Recognised in
equity
Foreign
currency
translation
Balance 31
December
2022
Property, plant and equipment 4,746 - 2,720 - (387) 7,079
Inventory 39 - 20 - - 59
Trade and other receivables (274) - (11) - (3) (288)
Provisions 6,995 - (2,197) - 103 4,901
Intangible assets (2,200) - 103 - (167) (2,264)
Other 2,507 - 1,180 (182) 161 3,666
Lease liabilities 186,932 - 14,877 - 1,047 202,856
ROU assets (161,170) - (10,475) - (737) (172,382)
37,575 - 6,217 (182) 17 43,627
$NZ000’s
Balance 31
December
2022
Opening
balance on
acquisition
Recognised in
consolidated
statement of
comprehensive
income
Recognised in
equity
Foreign
currency
translation
Balance 31
December
2023
Property, plant and equipment 7,079 - 4,124 - (13) 11,190
Inventory 59 - (8) - - 51
Trade and other receivable (288) - (106) - - (394)
Provisions 4,901 - 1,561 - 12 6,474
Intangible assets (2,264) - (967) - (13) (3,244)
Other 3,666 - 3,054 - (28) 6,692
Lease liabilities 202,856 - 343 - 494 203,693
ROU assets (172,382) - 2,519 - (412) (170,275)
43,627 - 10,520 - 40 54,187
$NZ000’s 31 Dec 2023 31 Dec 2022
Deferred tax assets 54,187 43,627
Deferred tax liabilities - -
54,187 43,627
Restaurant Brands New Zealand Limited
Page | 31
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
17. Provisions
NZ$000’s
Employee entitlements Make good
Total
Balance at 31 December 2022 2,438 4,286 6,724
Created during the period 288 416 704
Used during the period (353) (10) (363)
Released during the period - (37) (37)
Foreign exchange movement 7 8 15
Balance at 31 December 2023 2,380 4,663 7,043
31 December 2023
Current 1,689 - 1,689
Non-current 691 4,663 5,354
Total 2,380 4,663 7,043
The provision for employee entitlements relates to long service leave obligations. The provision is affected by a number of estimates, including
the expected length of service of employees and the timing of benefits being taken. Once an employee attains the required length of service, the
employee has a period of five years in which to take this leave.
The make good provision represents the contractual obligations for the estimated future store restoration costs at the completion of the property
lease term. The make good provision is classified as non-current.
18. Deferred income
NZ$000’s
Balance at 31 December 2022 1,381
Created during the period 4,023
Realised during the period (3,639)
Foreign exchange movement (20)
Balance at 31 December 2023 1,745
31 December 2023
Current 1,268
Non-current 477
Total 1,745
Deferred income relates to rebates from suppliers and is recognised in profit or loss in the consolidated statement of comprehensive income on a
systematic basis over the life of the associated contract.
Restaurant Brands New Zealand Limited
Page | 32
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
19. Related party transactions
Parent and ultimate controlling party
The immediate parent of the Group is Finaccess Restauración, S.L. and the ultimate parent company is Grupo Finaccess S.A.P.I de C.V.
Transactions with entities with key management or entities related to them
During the period the Group incurred $30,000 of travel related expenses for Julio Valdés, whilst employed as CFO of Grupo Finaccess S.A.P.I
de C.V (the ultimate parent company of the Group), prior to his appointment as Group Chief Financial Officer of Restaurant Brands New Zealand
Limited on 1 June 2023. During 2022 the Group received internal audit services totalling $14,000 from Finaccess Servicios Corporativos S.A. de
C.V. a subsidiary of Grupo Finaccess S.A.P.I de C.V., the ultimate parent company of the Group. In both years these transactions were on
normal commercial terms. There were no other related party transactions with key management or any Directors or entities associated with
them.
Key management and director compensation
Key management personnel comprises the Group CEO and his direct reports, the Group CFO and the four Divisional CEO's, Group Chief
People Officer, Chief Legal and Compliance Officer, and Group Chief Marketing Officer.
$NZ000’s 31 Dec 2023 31 Dec 2022
Key management – total benefits 6,074 6,021
Directors’ fees 510 510
Key management - total benefits relates to short-term employee benefits paid during the year.
Total Group CEO Remuneration
$NZ000’s
Salary
Short term
incentive
Long term
incentives
Total
remuneration
31 December 2023 843 636 - 1,479
31 December 2022 1,013 616 - 1,629
The Group CEO remuneration comprises of the former Group CEO, Russel Creedy, and the current Group CEO, Arif Khan. Arif Khan was
formally appointed as the Acting Group CEO effective 1 April 2023 and appointed as permanent role of Group CEO on 1 September 2023.
In addition to the amounts disclosed above, in September 2022 the former Group CEO was awarded a one-time compensation benefit due to his
retirement in March 2023. The total amount of the one-time award was $1.3 million and was paid upon his retirement on 31 March 2023. The
amount recognised in 2023 was $0.6 million (Dec 2022: $0.7 million).
Incentive schemes
A short-term incentive scheme is in place for all support office employees. The incentive is based on achieving in excess of planned results for
the specific financial year. Incentive payment to employees is at the discretion of the Remuneration and Nominations Committee. The
maximum that can be received by the Group CEO is 50% of base salary.
In May 2022 a payment of $0.4 million was paid in lieu of a share price based incentive scheme, as no long term incentive scheme has been
agreed. This is included as part of the short term incentives.
In 2023 no long term incentive scheme has been agreed (Dec 2022 nil).
20. Commitments
Capital commitments
The Group has capital commitments which are not provided for in these consolidated financial statements, as follows:
$NZ000’s 31 Dec 2023 31 Dec 2022
Store development 22,447 7,877
Point of sale system 5,569 -
Restaurant Brands New Zealand Limited
Page | 33
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
21. Contingent liabilities
In December 2023, Gordon Legal and Shine Lawyers have filed two class actions in the Federal Court of Australia on behalf of certain
KFC employees naming the franchisor, QSR Pty Limited (the Group’s Australian operating subsidiary) and eighty-eight other franchisees
as respondents. As at balance date, there was no impact to the consolidated financial statements, however the Group will continue to
assess the claims and will update the market in the event that the claims are expected to have a material impact on the Group.
22. Subsequent events
There are no subsequent events that would have a material effect on these consolidated financial statements.
23. Auditor’s remuneration
$NZ000’s 31 Dec 2023 31 Dec 2022
Audit and review of consolidated financial statements
Audit and review of consolidated financial statements – PwC 1,180 1,241
Other services – performed by PwC
Specified procedures on landlord certificates 6 7
Yum! Advertising co-operative report assurance services 12 13
Greenhouse gas emissions assurance services 89 -
Greenhouse gas emissions assurance readiness assessment 16 10
Total other services 123 30
Total fees paid to auditors 1,303 1,271
Included in the 2023 audit fee costs are out of pocket expenses of $30,000 relating to visits to overseas divisions. Included in the 2022 audit fee
is $24,000 relating to the 2021 audit.
24. Donations
$NZ000’s 31 Dec 2023 31 Dec 2022
Donations 116 572
The Group did not make any donations to political parties.
25. Business combinations
There were no business combinations during 2023.
Restaurant Brands New Zealand Limited
Page | 34
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
26. Deed of Cross Guarantee
Pursuant to the Australian Securities and Investment Commission (ASIC) Class Order 98/1418, the wholly owned subsidiary, QSR Pty Limited
(QSR), is relieved from the Corporations Act 2001 requirement for the preparation, audit and lodgement of financial reports.
It is a condition of that class order that Restaurant Brands New Zealand Limited and QSR enter into a Deed of Cross Guarantee (Deed). On 9
February 2017 a Deed was executed between RBNZ, QSR, Restaurant Brands Australia Pty Limited and Restaurant Brands Australia Holdings
Pty Limited under which each company guarantees the debts of the others.
Set out below is the consolidated information for the year ended 31 December 2023 of the closed group consisting of Restaurant Brands New
Zealand Limited, QSR, Restaurant Brands Australia Holdings Pty Limited and Restaurant Brands Australia Pty Limited.
$NZ000’s 31 Dec 2023 31 Dec 2022
Financial information in relation to:
(i) Statement of comprehensive income
Revenue 310,050 283,397
Earnings before interest and taxation 6,917 58
Finance expense (16,223) (12,850)
Loss before taxation (9,306) (12,792)
Taxation expense 2,083 3,622
Loss after taxation ( 7,223) (9,170)
Items that may be reclassified subsequently to the
statement of comprehensive income:
Exchange differences on translating foreign operations 366 1,189
Derivative hedge reserve - 622
Taxation expense relating to components of comprehensive income - (183)
Other comprehensive income 366 1,628
Total comprehensive income (6,857) (7,542)
Summary of movements in retained earnings
(ii) Retained earnings at the beginning of the period 109,476 117,018
Total comprehensive income (6,857) (7,542)
Retained earnings at the end of the year 102,619 109,476
Restaurant Brands New Zealand Limited
Page | 35
Notes to and forming part of the consolidated financial statements (continued)
for the year ended 31 December 2023
$NZ000’s 31 Dec 2023 31 Dec 2022
(iii) Statement of financial position
Non-current assets
Property, plant and equipment 94,703 90,800
Right of use assets 152,064 155,355
Intangible assets 120,780 121,297
Deferred tax asset 14,234 13,961
Investment in subsidiaries 239,353 239,353
Total non-current assets 621,134 620,766
Current assets
Inventories 1,877 1,596
Trade and other receivables 7,610 3,185
Income tax receivable 2,223 5,898
Cash and cash equivalents 6,626 (155)
Total current assets 18,336 10,524
Total assets 639,470 631,290
Equity attributable to shareholders
Share capital 154,565 154,565
Reserves (2,456) (2,822)
Retained earnings (49,490) (42,267)
Total equity attributable to
shareholders
102,619
109,476
Non-current liabilities
Provisions 3,054 2,725
Lease liabilities 168,679 167,456
Loans 95,546 92,499
Total non-current liabilities 267,279 262,680
Current liabilities
Trade and other payables 25,265 24,148
Provisions 1,377 1,433
Lease liabilities 10,835 11,369
Amounts payable to subsidiaries 232,095 222,184
Total current liabilities 269,572 259,134
Total liabilities 536,851 521,814
Total equity and liabilities 639,470 631,290
Independent auditor’s report
To the shareholders of Restaurant Brands New Zealand Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Restaurant Brands New
Zealand Limited (the Company), including its subsidiaries (the Group), present fairly, in all material
respects, the financial position of the Group as at 31 December 2023, its financial performance and its
cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards Accounting
Standards (IFRS Accounting Standards).
What we have audited
The Group's consolidated financial statements comprise:
● the consolidated statement of financial position as at 31 December 2023;
● the consolidated statement of comprehensive income for the year then ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended; and
● the notes to the consolidated financial statements, comprising material accounting policy
information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in theAuditor’s responsibilities for the audit of the financial statementssection of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand)(PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence
Standards)issued by the International Ethics Standards Board for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in the areas of: specified procedures on landlord
certificates, a greenhouse gas emissions assurance readiness assessment, and assurance services
over greenhouse gas emissions and the Yum! Advertising co-operative report. Subsequent to 31
December 2023, we have been engaged to provide a whistleblower line call service. In addition,
certain partners and employees of our firm may deal with the Group on normal terms within the
ordinary course of trading activities of the Group. The provision of these other services and
relationships have not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Description of the key audit matterHow our audit addressed the key audit matter
Goodwill impairment assessment -
KFC and Taco Bell California
Goodwill recognised in relation to KFC
and Taco Bell California cash-generating
unit (CGU) amounted to $30.0 million
(2022: $29.9 million) as at 31 December
2023. During the year, this CGU incurred
a net loss after tax of $19.0 million (refer
to note 1 of the consolidated financial
statements).
Assessing the carrying amount of goodwill
for the KFC and Taco Bell California CGU
was an area of focus for the audit due to
the impacts of inflationary costs on
financial results and the inherent
judgement involved in estimating future
business performance.
Management performed an annual
impairment assessment using a
discounted cash flow model under a Fair
Value Less Cost of Disposal (FVLCOD)
approach which was based on the
strategic plan approved by the Board of
Directors, to determine whether the
carrying value of assets held by the KFC
and Taco Bell California CGU are
recoverable.
The recoverable amount (based on the
FVLCOD model) was higher than the
carrying value and as a result, no
impairment expense was recognised.
However, management identified certain
scenarios where a reasonably possible
change in the key assumptions of sales
turnover, EBITDA margin and the discount
rate would result in the carrying amount
being equal to its recoverable amount.
Refer to note 15 of the consolidated
financial statements.
In addressing the risk of goodwill impairment for the
KFC and Taco Bell California CGU, our audit
procedures included:
● updating our understanding of the business
process applied by management in preparing the
impairment assessment;
● reviewing prior year actual store sales and
profitability against the original budgeted
performance to determine the reliability of the
budgeting process;
● agreeing forecast future performance included in
the FVLCOD impairment assessment to the
strategic plan approved by the Board of Directors;
● challenging key assumptions used in the FVLCOD
model in relation to: sales growth, EBITDA margin,
terminal growth rate and discount rate and
assessing whether these are reasonable by
understanding management initiatives underway
to mitigate cost increases and maintain or grow
EBITDA margin and reviewing recent monthly
performance;
● evaluating whether corporate costs had been
allocated appropriately and included in the cash
flows for the CGU;
● with the assistance of our auditor’s valuation
expert, assessing the appropriateness of the
terminal growth rate and discount rate;
● reviewing industry trends and external market
forecasts for the industry to determine the
reasonableness of management’s forecast;
● testing the mathematical accuracy of the carrying
amount of the CGU that is compared against the
recoverable amount in the impairment model;
● performing a sensitivity analysis over key
assumptions to determine whether reasonably
possible changes would result in an impairment of
goodwill; and
● reviewing financial statement disclosures.
Impairment assessment of store
property, plant and equipment,
intangible assets and right of use
assets
Our audit procedures included:
● considering whether the group of assets identified
by management as a CGU is appropriate;
● where impairment indicators existed, recalculating
the carrying value for each CGU and testing the
impairment models prepared by management;
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37
Description of the key audit matterHow our audit addressed the key audit matter
For the period ended 31 December 2023,
the Group recognised impairment of $9.0
million (2022: $3.3 million) in relation to
CGUs in the Australia, Hawaii and
California regions (refer to note 2 of the
consolidated financial statements). For
the purposes of store property, plant, and
equipment, intangible assets and right of
use asset impairment testing, each
individual store is considered to be a
separate CGU.
An assessment was performed by
management to identify impairment
indicators for stores including those that
have experienced continued losses due to
inflationary pressures. For these stores,
management has performed Value In Use
(VIU) and/or FVLCOD calculations to
assess whether the associated carrying
amounts of property, plant and equipment,
intangible assets and right of use assets
are recoverable.
The key assumptions used in
management’s discounted cash flow
model for stores are sales growth,
EBITDA margin, EBITDA margin terminal
year, terminal growth rate and discount
rate.
This is a key focus of our audit due to the
impact of inflationary pressures on the
future financial performance and
recoverable amount of each CGU given
the value of property, plant and
equipment, intangible assets and right of
use assets held by the Group.
Refer to notes 13 and 15 of the
consolidated financial statements.
● gaining an understanding of the business process
applied by management in preparing the
impairment assessments;
● reviewing store profit or loss performance data to
analyse how each store has performed historically
and for the past year, to identify whether an
impairment indicator existed in addition to those
identified by management;
● challenging key assumptions used in the VIU
and/or FVLCOD models for each store in respect
to: sales growth, EBITDA margin and EBITDA
margin terminal year by assessing whether
management’s assumptions are reasonable
against historical performance and industry trends
and whether they take account of ongoing
uncertainty from inflationary pressures. This
includes considering the potential for future store
closures and the impact of closures on remaining
lease terms in respect of right of use assets
recognised;
● with the assistance of our auditor’s valuation
expert, assessing the appropriateness of the
terminal growth rates and discount rates;
● evaluating the feasibility of management’s plans to
improve store profitability;
● performing a sensitivity analysis over key
assumptions to determine whether reasonably
possible changes would result in an impairment of
property, plant and equipment, intangible assets
and right of use assets; and
● reviewing financial statement disclosures.
Revenue recognition
Total revenue for the year amounted to
$1.4 billion (2022: $1.3 billion). The Group
primarily earns revenue from store sales,
which accounts for approximately 95% of
total revenue, while other revenue
includes sale of goods and services to
independent franchisees.
Our audit approach to test revenue is a combination of
controls and substantive testing and included the
following procedures:
● updating our understanding of the systems,
processes and controls in place over the
recognition of revenue in each region;
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38
Description of the key audit matterHow our audit addressed the key audit matter
Refer to notes 1 and 2 of the consolidated
financial statements.
Given the volume and significance of
revenue recognised across four regions,
this required significant auditor attention
and is a key area of focus for the audit.
● testing, on a sample basis, management’s
controls over the reconciliations of the
point-of-sale-systems, general ledger and bank
statements;
● verifying the completeness of revenue recognised,
on a sample basis, by agreeing daily cash
received to the general ledger;
● for store sales revenue, evaluating the flow of
revenue journals to validate that revenue
transactions are settled in cash. For those not
settled in cash, agreeing the accounting entries to
supporting documents, on a sample basis;
● for a sample of other revenue transactions,
examining invoices issued to independent
franchisees and cash remittances, where paid;
● testing bank and bank clearing account
reconciliations at year end by agreeing material
reconciling items to supporting documents; and
● reviewing the appropriateness of disclosures in
the financial statements.
Our audit approach
Overview
Overall group materiality: $6.7 million, which represents approximately 0.5% of
total revenue.
We chose revenue as the benchmark because, in our view, it is the benchmark
against which the performance of the Group is most commonly measured by
users, and is a generally accepted benchmark.
Following our assessment of the risk of material misstatement, we:
– performed full scope audits for all the Group’s principal business units which
correspond to its market segments in New Zealand, Australia, Hawaii and
California based on their financial significance; and
– performed specified audit procedures and analytical procedures over the
remaining entities and on consolidation entries.
As reported above, we have three key audit matters, being:
● Goodwill impairment assessment - KFC and Taco Bell California
● Impairment assessment of store property, plant and equipment,
intangible assets and right of use assets
● Revenue recognition
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements.
PwC
39
In particular, we considered where management made subjective judgements; for example, in respect
of significant accounting estimates that involved making assumptions and considering future events
that are inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters, consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates. We performed full
scope audits for all of the Group’s principal business units in New Zealand, Australia, Hawaii and
California.
The materiality levels applied in the full scope audits of the principal business units were calculated by
reference to a portion of Group materiality appropriate to the relative scale of the business concerned.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report, but does not include the consolidated financial statements
and our auditor's report thereon. The other information we obtained prior to the date of this auditor’s
report comprised the Historical Summary, Group Pro Forma Profit Statement, Non-GAAP Financial
Measures and the Directors’ Report. The remaining other information included in the Annual Report is
expected to be made available to us after the date of this auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we will
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS Accounting Standards,
and for such internal control as the Directors determine is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
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40
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Karen Shires.
For and on behalf of:
Chartered Accountants
26 February 2024
Auckland
PwC
41
---
Results announcement
(for Equity Security issuer/Equity and Debt Security
issuer)
Results for announcement to the market
Name of issuer Restaurant Brands New Zealand Limited
Reporting Period 12 months to 31 December 2023
Previous Reporting Period 12 months to 31 December 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,395,251 7.5%
Total Revenue $1,395,251 7.5%
Net profit/(loss) from
continuing operations
$16,263 -49.3%
Total net profit/(loss) $16,263 -49.3%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend will be paid for the year ended 31 December 2023.
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not Applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.24 $0.12
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer announcement for Restaurant Brands released to the
market on 26 February 2024
Authority for this announcement
Name of person
authorised
to make this announcement
Julio Valdés
Contact person for this
announcement
Julio Valdés
Contact phone number +64 9 525 8700
Contact email address Julio.Valdes@rbd.co.nz
Date of release through MAP
26/02/2024
Audited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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