News

Withdrawal from France, Mexico cost Telepizza $17 M in 2003

March 1, 2004

MADRID--Telepizza SA posted a net loss for 2003 due to a one-time restructuring charge related to its withdrawals from Mexico and France.

According to Dow-Jones Newswires, the chain incurred a full-year 2003 loss of EUR13.63 million (U.S. $16.9 million), compared with a net profit of EUR5.4 million (U.S. $6.7 million) in 2002.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell nearly 11 percent to EUR49.3 million (U.S. $61.3 million) from EUR55.12 million (U.S. $68.5) in 2002. However, fourth-quarter EBITDA rose 5 percent, signaling a sales turnaround.

Negative comparable-store sales during the year dragged revenue down by 3.4 percent to EUR291.02 million (U.S. $361.7 million), compared to EUR301.1 million (U.S. $374.2 million) in 2002.

The market pullouts dropped Telepizza's store count from 858 in 2002 to its current 716.