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 report, released on 26 May 2026:

Highlights:

• Net profit after tax of $1.3m (2025: net loss of $1.2m). Grossed up to reflect the Group’s tax loss carry forward this represents a cash equivalent NPAT of circa $1.8m.

• Savor’s operating earnings* for FY26 were $8.0m (2025: $7.3m), at the top end of the guidance range issued in March 2026.

• Revenue of $55.2m (2025: $56.6m), with operating earnings margin of 14.5%, the strongest in the Group’s history.

• Operating cash flows continued to be strong at $7.2m, an increase of 13% on the prior year (2025: $6.4m), before working capital movements. Reported operating cash flows were $6.9m.

• Earnings per share of 1.7 cents (FY25: -1.6 cents).

• Group borrowings have continued to reduce, with leverage of 1.92 times at 31 March 2026 and a subsequent reduction to 1.8 times following the further repayment in April 2026. Net debt further reduces Group leverage to approximately 1.4 times.

These results mark a significant milestone for the Group. Returning to profitability while delivering our strongest margins to date, in a year where consumer spending remained under sustained pressure, is a testament to the quality of our brands, the discipline of our teams, and the considered shift to improve the quality of the Group’s earnings and the venues delivering them.

The Group’s continued focus on cost control is reflected in the strength of these results. While input costs remain under pressure across a variety of sectors, cost of goods sold as a percentage of revenue improved by over 1% to below 28%, and venue wages continued their improvement, delivering approximately $1m of additional contribution. Utilities and overhead costs continue to be actively managed and reduced where possible. Together, these operational improvements have delivered a meaningful and durable lift in the Group’s operating earnings margin.

The Group’s balance sheet continued to strengthen. Leverage reduced from 2.4 times to 1.92 times at 31 March 2026, and the Group ended the year with net cash on hand of $1.7m. Subsequent to year end, the Group repaid a further $0.5m of borrowings in April 2026, reducing leverage to 1.80 times. Savor remains on track to deliver its first dividend to shareholders later in the year, as announced in March 2026.