Taste Holdings, who are the owners of Domino’s Pizza and starbucks, have reported a loss of over R65 million in its interim financial results.
According to the report of results for the six months ended in August 31, loss per share was down by 74% to 16 cents, in comparison to the 9c reported in 2016.
Their revenue declined by 9% to R483 million, that compared to the same period last years.
The business is currently running at an operating loss of -R73.3 million.
The issues a rights offer during the period that saw cash increase to R86 million, which is twice as much the cash value reported in 2016.
CEO Carlo Gonzaga said the operational gains made in the period were overshadowed by the brutal and sustained decline in consumer spending across all the group’s categories.
Their food group reported a massive operating loss of –R61.5 million.
The group added two Starbucks stores in August 2017, meaning there will be a total of ten stores.
The new division will focus on growing Starbucks and Domino’s stores, until their individual profit contribution will exceed support cost.
The food division could cost R328 million.
“The next six months will no doubt continue to test the fortitude of South African consumers” Gonzaga said.