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Oliver’s trims loss in FY18

Health food chain Oliver’s Real Food has reported a full-year net loss after tax of $600,000 for FY18, an improvement over the $2.9 million loss it booked the previous year.

This was largely due to a 73.2 per cent increase in total revenue for the period, which jumped from $20.7 million in FY17 to $35.9 million in Fy18, slightly below the revised guidance for the period of $36 million to $37 million.

Gross profit almost doubled to $27.4 million, up 97 per cent from the $13.9 million posted in 2017.

The health food chain has undergone significant changes following the appointment of Greg Madigan as chief executive in March after founder Jason Gunn was removed from the business.

These include the development of a business plan for FY19, installing customer-facing improvements such as self-ordering kiosks and a review of the Oliver’s menu to ensure it remains appropriate, attractive and competitive.

Supply chain is an area the group expects to continue to improve on, with a Queensland warehouse and kitchen facility opened in May 2018, as well as renegotiated terms with suppliers to achieve improved terms and rebates.

The group also implemented a slew of management changes over the period, appointing a new chief people officer Kelly Pumpa in June 2018, chief of operations Mark Shalala, business analyst, operations compliance officer, leasing specialist and Red Dragon business development manager.

The directors are confident these changes, under the leadership of Madigan, will allow Oliver’s to grow as a sustainable and profitable business, given the brand strength, improved supply chain and revenue generating digital and technology initiatives.

Oliver’s Real Food opened nine new stores during the period and closed one underperforming store, resulting in a total store count of 28 at the end of FY18.

The group said it will not provide FY19 guidance until it releases results from its new initiatives.

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