Taste Holdings, facing an uphill battle to raise cash to fund further expansion, suffered a fresh setback this week when it released interim results showing its losses had widened further. The small-cap fast-food and luxury-goods company is seeking ways to raise much-needed capital to fund further rollouts of outlets for global brands Starbucks and Domino's locally. Reduced profits in the luxury-goods division contributed to the operating loss of R73.3-million for the interim period ending August, against R41.1-million in the previous comparable period. Finance costs rose to R23.3-million from R16.1-million as both the cost and quantum of borrowings increased.The group's fast-food outlets reported sales growth of 6% to R282-million, but jewellery sales dropped 15% to R253-milion, resulting in a 9% dive in revenue to R483-million. CEO Carlo Gonzaga said the company had expected luxury goods to decline but not to the extent that they had in the first quarter. "Apart from the lower-end...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.