OAO Rosinter Restaurants Holding, a Russian eatery chain, swung to a loss last year because of higher food prices and salaries as well as write-offs relating to closures.
The net loss was 281.2 million rubles ($9 million) compared with profit of 257.5 million rubles a year earlier, Rosinter said today in an e-mailed statement. Sales rose 6.4 percent to 10.4 billion rubles.
Rosinter’s gross profit margin fell to 20.3 percent from 23.8 percent a year earlier “resulting from an increase of food and beverage costs and payroll expenses,” the company said. The chain reported impairment provisions of 265 million rubles and write-offs of 184 million rubles related to store closures.
Earnings before interest, taxes, depreciation and amortization fell 68 percent to 335.1 million rubles, while net debt rose 10 percent to 1.27 billion rubles, Rosinter said. That pushed the ratio of net debt to Ebitda up to 3.8 as of Dec. 31 from 1.1 a year earlier, it said.