Tantalizers Plc, a leading Quick Service Restaurant (QSR) in Nigeria has posted its lowest loss in eight years in the first half of 2021 as revenue increased to near pre-COVID-19 levels.
The fast-food company reduced its losses by 134.57 percent to N57.60 million in the first half of 2021 compared to N135.11 million in the same period last year, as gathered from the financial results for the period ended June 30 2021.
The company’s remarkable performance in the first six months of 2021 was on the back of revenue increase. Tantalizers Plc grew its revenue by 41.94 percent to N615.78 million in the first half of 2021 from N433.83 million in the corresponding period of 2020.
Lower than the pre-COVID-19 revenue of 2019, the half-year 2021 revenue reported by Tantalizers was 3.6 percent less than the N638.75 million recorded in the same period of 2019.
With over 60 restaurants across Nigeria as of 30th April 2017, Tantalizers was severely affected by the COVID-19 pandemic, as the widespread economic vulnerabilities in the nation disrupted the business segment of the company.
The lockdown and the restriction placed on businesses operating in the on-trade market affected the on-premise demand and sales of these companies, which led to a decline in the sales and net revenue of Tantalizers Plc.
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However, the core business segment of Tantalizers was not the only segment affected, as other revenue-generating segments like Rent, advertisement and franchising declined over this period.
But as Nigeria’s economy fully re-opens following the ease in lockdown restrictions, the sales of QSR companies are returning to pre-COVID-19 levels even as low purchasing power persists on slow economic growth.
The breakdown of Tantalizers’ half-year result revealed how its cost of operation is eating most of its revenue. The company reported an increase in its cost of sales to N385.42 million in half the year of 2021 from N233.15 million the previous year.
Its administrative expenses also increased in the review period, from N403.45 million to N462.11 million. Other operating expenses also increased in the same period, from N101.60 million in half-year of 2020 to N216.19 million in the corresponding period of 2021.
The company, however, reduced its distribution expenses to N449,551 from N1.63 million.
Tantalizers is one of the leading Nigerian fast food restaurant chain. It opened its first location around 1997 in Festac Town, Lagos. This first location was initially a small neighbourhood restaurant serving hamburgers.
Success at the first location led to an expansion that has seen the company and its franchisees open additional locations in cities such as Lagos, Ibadan, Abuja, and Port Harcourt.
Tantalizers serves Nigerian fast-food staples such as meat pies, scotch eggs, chicken, jollof rice, fried rice, cakes, and hamburgers.
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