Restaurant Brands New Zealand : Half Year Results September 2020.

Total Group sales for the 1H December 2020 year were $383.4 million, down $59.2 million on the previous half year. This is the result of the impact of COVID-19 as well as the current reporting period being two weeks less than last year's reported 28 week result.

Net Profit after Tax for the six months (26 weeks) ended 30 June 2020 was $11.4 million (9.2 cents per share), down $8.6 million on the 1H Dec 2019 (28 weeks ended 9 September 2019). Net profit after Tax was adversely effected by COVID-19 as reflected in the Group sales.

Combined brand EBITDA before G&A was down $10.6 million to $62.1 million, primarily due to the effect of the COVID-19 store closures in New Zealand. The USA business however delivered an earnings increase of $2.2 million, with a strong Pizza Hut performance despite the challenges of COVID-19.

During the year ended 31 December 2019 Restaurant Brands NZ Limited ('RBD') changed its balance date from February to December. This half year report therefore is for a six month (26 week) period compared to 28 weeks as a comparison for the previous half financial year. This, together with the adverse effect of COVID-19 on the financial results makes direct comparisons between the reported results difficult.

Scaling back the previous year's results to enable a 26 week comparison produces a comparative sales number of approximately $411.0 million, which is $27.6 million higher than the current year. Similarly proportionately adjusting 1H Dec 2019 NPAT to approximately $18.6 million, results in the 1H Dec 2020 result being $7.2 million lower.

COVID-19 has had a significant impact on the company's results. Whilst difficult to quantify exactly, the New Zealand business five week full store closure saw lost sales in excess of $40 million. In addition there was a period of time where stores were only able to partially open with drive-through and delivery, further adversely impacting sales. All New Zealand stores are now fully operational. Most stores in Australia and the USA remained open although they have been operating, and in most cases continue to operate, without dine in facilities being available. This creates further difficulties in quantifying the underlying effect of COVID-19.