Despite disruption, operational and financial performance of McDonalds has improved

Principal activities

The Premier Capital plc Group is engaged in the operations of McDonald’s restaurants in Malta, Estonia, Greece, Latvia, Lithuania and Romania. The holding company acts as an investment company and service provider to its subsidiary undertakings.

Group

The period under review was characterised by unprecedented events brought about by the COVID-19 pandemic which had far-reaching social and economic impacts both locally and internationally. The Group’s subsidiaries have complied with the guidance of national authorities in the markets in which it operates, leading to the temporary closure of some McDonald’s restaurants, while other restaurants were operating with limitations but continued to serve customers through take away and via McDrive and McDelivery where was possible.

Following a positive start of the year, the events that unfolded from mid-March onwards impacted the Group’s financial and operating performance of the first six months of 2020, however, the effect on the financial results was partially contained through various mitigation measures put in place.

During the first six months an in-store restaurant opened in Romania with the Group now operating a total of 157 restaurants across the six territories.

During the period under review, the Group registered an operating profit of €5,001,008 (June 2019 – €13,129,408) on revenues of €143,127,194 (June 2019 – €157,971,835).

After accounting for the investment income and finance costs, the Group registered a profit before tax of €1,915,558 (June 2019 – €9,928,873). In the first six months of 2020, the Group registered an EBITDA of €18,424,143 when compared to an EBITDA of €23,940,379 for the period ended June 2019.

The Group’s net assets for the period under review amounted to €46,609,930 compared to €57,081,844 as at 31 December 2019.

Holding company

During the period under review, the holding company registered an operating loss of €1,903,384 (June 2019 – €2,283,450). After accounting for investment income and finance costs, the holding company registered a pre-tax loss of €2,363,404 (June 2019 – €2,846,492).

The net assets of the holding company as at 30 June amounted to €36,439,636 compared to €38,379,806 as at 31 December 2019.

Future outlook

Following the outbreak of the COVID-19 pandemic, the directors have continued to actively monitor the Group’s operations in order to safeguard its interest as necessary. Despite disruption in business operations for a number of weeks, the operational and financial performance of the Group has improved. Management is optimistic that the mitigation measures put in place at the start of the pandemic will continue to have a positive impact on performance. Nonetheless the Group continues to operate in uncertain and unprecedented circumstances which may still have an adverse impact on the Group’s future profitability and financial position.