Tantalizers posts loss for fourth straight year

Tantalizers, one of Nigeria’s oldest fast-food restaurants, recorded a loss for the fourth straight year in 2023, according to BusinessDay analysis.

In the company’s latest financial statement, its after-tax loss widened to N290.74 million from N264.09 million in 2022.

Revenue grew marginally to N1.17 billion from N1.16 billion and cost of sales dipped to N742.27 million from N748.18 million.

The statement also revealed that system revenue surged to N2.64 billion from N2.43 billion, driven by franchisees-owned outlet sales of N1.41 billion and company-owned outlet sales of N1.22 billion.

Other income dropped to N152.02 million from N478.5 million during the period.

Distribution costs dipped to N15.11 million from N38.15 million and administrative expenses also dropped to N847.7 million from N902.1 million.

The firm’s e-commerce service charge grew to N6.61 billion from N3.08 billion. Finance cost surged to N105.3 million from N78.41 million and tax expenses dipped to N5.83 million from N22.3 million.

Its total assets dipped to N2.25 billion from N2.55 billion. Shareholders’ funds dropped to N362.6 million from N653.4 million.

Net cash used in operating activities stood at a positive of N115.6 million from a negative of N430.9 million.

Net cash provided by investing activities stood at a negative of N24.28 million from a positive N471.9 million. Net cash used in financing activities stood at a negative N181.89 million from a negative N70.89 million.

Cash and cash equivalents at the end of the year dipped to N23.92 million from N114.5 million.

Tantalizers opened its first location in 1997 in Festac Town, Lagos. The location was initially a small neighbourhood restaurant serving hamburgers.

From serving hamburgers, it expanded to serving other meals like meat pies, scotch eggs, chicken, jollof rice, fried rice and cake.

According to the company, the success of the location led to an expansion that has seen its franchisees open additional locations in cities such as Lagos, Ibadan, Abuja, and Port Harcourt.