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Stronger year for Burger Fuel

Burger Fuel Group recorded net profit after tax for the March year of $505,478 representing a 59.1% decrease on the previous year.

The Group has no debt, and cash reserves of $5.6M.

BurgerFuel Group (unaudited) Total System Sales (all three brands) reduced (2.18%) to $101.3M on the same period last year. Group Operating Revenue increased by 4.0% to $21.9M. Whilst revenue is up on FY19, this is mainly due to the opening of our company owned Shake Out store at the Smales Farm complex in Takapuna, Auckland in November 2018, as well as the additional interest income booked for the non-occupied leases as per the new IFRS 16 lease accounting standard $1.4M.

Revenue is largely comprised of sales from our company owned restaurants, manufacturing, and long-term recurring royalties.

In FY20 we had a reduction in MENA royalty and advertising income and an internal business structure change lowered revenue from our proprietary product manufacturing operation but will ensure that this business unit becomes more financially efficient going forward.

The Group also incurred additional costs around the KPMG process, legal costs, writing off certain obsolete assets and stock write offs due to the closure of restaurants over the COVID-19 lockdown period. The Group has also undertaken significant investment in the ongoing development of the new brands.

As at 31 March 2020 there were 78 BurgerFuel, Shake Out® and Winner Winner® stores operating in NZ and worldwide.

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