Pizza Express sees profits turn to loss despite strong like-for-like sales
According to the group's latest accounts on Companies House, adjusted EBITDA for PizzaExpress UK & Ireland was £50.8m for the 52 weeks to 31 December 2023, compared to £57.2m the prior year.
Adjusted EBITDA for the group, meanwhile, which includes operations in Hong Kong and the UAE, was £52.3 (2022: £59.3m).
Group operating profit, excluding adjusting items, was £34.5m, compared to £42.6m. However, total loss after tax for the period was £7.5m, compared to a profit of £9.7m the previous year.
The group said it continued to experience strong macroeconomic headwinds in its primary market of the UK and Ireland during 2023.
“Trading has been challenging with continued consumer caution driven by stubbornly high inflation, rising interesting rates and the ‘cost of living crisis’, coupled with cost inflation across food, labour and central costs,” it said.
Over the period the business focused on upweighting its customer offering through a primary customer experience that included brand, restaurant and food and drink appeal across all parts of its service journey. This involved investment across the business, including in its loyalty scheme, restaurants and people.
Looking ahead, the group expects the UK, with its strong national scale and reach, to continue to be its key growth market, coupled with potential opportunities to expand globally with strong franchise partners.
It is continuing to invest in its existing UK restaurant estate, with a 'substantial refurbishment programme that uplifts the customer experience'. In 2023 a further 70 restaurants underwent refurbishment, and this continues at pace into 2024.
The group ended 2023 with 358 restaurants in the UK & Ireland – one new restaurant and five closures – and 460 in total (up six).
Pizza Express said it had continued to drive forward its loyalty programme, with the milestone of two million members reached in October 2023 – less than two years since the PizzaExpress Club app was launched.
Last year also saw the restaurant group expand its retail proposition with the launch of a frozen range of pizzas, pastas and a garlic bread.
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