Savor Limited Analysis

Overview

Savor Limited is the listed entity of Savor Group. Established in 2011, Savor Group is one of New Zealand’s largest hospitality businesses with 13 iconic venues in Auckland, including Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza, each with its own unique concept, culture and offering. Savor has a reputation for originality, the quality of its products and the high standard of service that is consistent across the company portfolio.

Savor Limited (formerly Moa Group Limited) was formed at the NZX listing of the Moa Brewing Company Limited in 2012. Savor Limited acquired the operations of Savor Group in 2019 in order to obtain size and scale in the hospitality industry. Moa Brewing Company Limited was sold in February 2021 to independent interests

Performance

The following information was extracted from Savor Limited's Annual Results, released 22 May 2025:

Savor Limited (NZX: SVR) (“Savor”, “the Company”, or with its subsidiaries “the Group”), New Zealand’s premier hospitality group, presents its results for the financial year ended 31 March 2025.

Highlights:

• Savor’s operating earnings for FY25 were $7.3m, representing a net extraction rate of 13% a considerable achievement given the market backdrop, and within 1% of the prior year.
• Savor’s revenue for the year was $56.6m, an 8% decline on the prior year, driven by reduced foot traffic due to economic pressures, but supported by a consistent customer spend per head. This represents a strong turnaround for the second half of the year, closing the gap from 15% down as reported in the half year results.
• Operating cash flow continued to be strong, with the Group recording $7.1m compared to $6.4m in the prior year, an increase of 11%.
• Savor recorded a net loss after tax of $1.2m compared to a profit of $0.7m in the prior year, primarily due to the one-time accounting write-off from the discontinued Seafarers operations.
• The Group’s balance sheet remains strong, finishing the year with net cash on hand of $1.8m and maintained a ratio of net debt to operating earnings of less than 1 times.

These outcomes, achieved amidst rising costs and cautious consumer spending, underscore our commitment to operational efficiency. The Group’s underlying operational improvements and asset upgrades positions Savor for a strong recovery as market conditions improve.

The Group’s financial results continue to demonstrate our disciplined cost management efficiencies, despite the continued challenging economic conditions. Through the continued daily management of variable costs, the Group mitigated the impact of lower revenues while preserving the quality of our customer experience.

Throughout the year, Savor has implemented a number of targeted initiatives to enhance our portfolio and deepen customer engagement. The expiry of the Seafarers building lease in Britomart, the Savor Food Festival, the upgrades to NSP, and the opening of the new Roukai Lane site in September 2025 in Britomart ensure quality and cost efficiency despite the risk of global tariff uncertainties, and position Savor well in its efforts to maintain stable pricing for our customers and robust margins.