Just a reminder for those that didn't see this last month
SNAKES & LATTES INC. Is Pleased to Report a 65% Increase in YOY Q1FY23 Revenue at $1,984,097, Up From $1,203,460 for Q1FY22, With Gross Profits Up 114% From $670,985 to $1,438,243
Press Release | 11/11/2022
TORONTO, ON, Nov. 11, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – SNAKES & LATTES INC. (OTC: FUNN) is pleased to report a 65% increase in year over year Q1FY23 revenue at $1,984,097, up from $1,203,460 for Q1FY22, with gross profits up 114% from $670,985 to $1,438,243.
We are pleased to report financials are trending in the right direction. Patronage has increased with the return of students, and have seen increases in per customer receipts.
Cash on hand at the end of the quarter was $33,440 with total assets of $3,844,156 over total liabilities of $8,990,180. The total outstanding common share count of the company is 758,849,876 as of September 30th, 2022.
Cost of goods sold remains in line with expectations, hovering around 25%.
As previously reported, we have been processing government subsidy loans incurred during the pandemic. We expect another $375,000 to be forgiven during Q2FY23.
Notable Highlights For Snakes & Lattes Locations (Q1 FY23):
‘College’ revenue up 115.52% this quarter from last year
‘Midtown’ revenue up 217.34% from last Q1 last year
‘Annex’ revenue up 147.91% from Q1 last year
‘Tempe’ is EBITDA positive for the 4th quarter in a row with $700k revenue in Q1
‘Tempe’ is on target for $3 million this FY with a net operating income over 5% even with the slower Summer period
‘Chicago’ Q1 saw a 36.84% increase over the previous quarter, this is a strong revenue improvement, trending to be EBITDA positive by Q3
‘Tucson’ saw revenues increase by 11.98% for the quarter and a particularly strong September with the return of students
Overall metrics have been improving as operational excellence initiatives and efficiencies are being actualized through a continuous flow of small improvements over time. While any singular change may not instantaneously move the needle, over time and in aggregate they collectively make a very significant impact. As we see more locations become EBITDA positive, we see the collective impact of our efforts.
Types of improvements we have implemented covering various aspects and areas of running the Snakes & Lattes locations:
Sourcing additional vendors for product stability and availability
Leveraging buying power by negotiating national contracts, discounts or fee reductions
Using technology for alerts when product purchases go above a price threshold. We use specialized software to help keep an eye on tedious pricing changes and profitability.
Utilizing online menus for easy pricing adaptability for menu adjustments
Allowing guests to place their own food and drink orders, freeing staff to focus on the customer experience and less on transactions with less labor
Pre-selling tickets for special events, allowing for better cash flow and labor forecasting
“The first quarter of the new fiscal year was a great start overall. The changes we have made over the past couple of years is paying off in markedly increased revenues per customer. As patronage continues to rise back towards pre-covid customer levels, it puts us on track for our financial goals,” said Snakes & Lattes Inc. Founder, Ben Castanie.
Ben continued, “For the first time since the pandemic, all the Canadian locations were EBITDA positive. The rise and trend in our metrics are very motivating. We do note the PPP loans and other subsidies are impacting the P&L read, but this should stop after Q2.”
Looking forward:
As we move to the busy holiday season, we are quite optimistic for a great quarter with all locations open full-time. Fiscal Year 2023 is looking to be a great growth year.
Locations have been booking holiday corporate and private events
We are receiving excellent industry recognition at the annual TAGIE awards in November
The company continues to work on other promising initiatives, which in turn are expected to continue to impact positively on the yearly aggregate growth. Details will be released on new initiatives and/or locations as milestone information becomes available.
As always, a big thank you to all our supporters and loyal customers, we continue to serve in honor to create the best possible experience for our patrons. The future of Snakes and Lattes is very bright as we continue to add on new locations, take on lucrative strategic partnerships and build our brand. Creating memorable, quality human interactive experiences keeps us going, and at all times we keep the mission of ‘Snakes and Lattes locations coast to coast’ at the forefront of our strategy.
See you at Snakes & Lattes!
