A conflicting set of results at Cooks Coffee has seen the Esquires owner feel the effect of a rapidly growing store network.

In its full financial year, ending March 31, Cooks recorded an 83.7 per cent increase in its revenue to $12.35 million. This figure, however, didn’t counter a 61.3 per cent decline in profits year-on-year.

But this fall in profit may not paint the full picture.

It was an expensive year for Cooks, which opened 21 new stores in the UK and one in Pakistan, while signing master franchise agreements to open stores in both India and the UAE. At the same time, through a partnership with Tesco Ireland, Cooks increased its number of outlets in the country by 35 per cent, to 23.

“Growth for the Esquires brand continues to significantly exceed reported industry growth in both core markets, and the board would like to acknowledge the dedicated performances of all the parties involved in the group’s activities, driving the growth plans and delivering excellent service to our customers every day,” said Keith Jackson, executive chairman of Cooks Coffee.

The four Dairygold company-managed stores within the group accounted for $5.3 million in sales, 17.6 per cent of all store sales.

“The expansion strategy demonstrates the company’s resilience and ability to attract and retain customers in both established and new locations,” Jackson added. “The positive earnings momentum in the continuing business resulting from the growth is forecast to continue to build as the network builds.” 

Going forward, Cooks said its trading momentum and continued demand from franchisees are cause for optimism.