Sign up Australia
Proactive Investors - Run By Investors For Investors

Oliver's Real Food to acquire strategic café in Euroa, Victoria

Jax Café is expected to generate an annual revenue of circa A$1.7mln in its first full year
Australian dollars
The company listed on the ASX in June after raising A$15mln

Oliver's Real Food Ltd (ASX:OLI) has signed an agreement to acquire Jax Café, which is strategically located on Hume Highway in Euroa, Victoria for a total cost of A$1.6mln.

Oliver’s business strategy is to accelerate the roll out of new stores along the arterial highways of Australia’s eastern and southern seaboard.

A key benefit of this roll out strategy is economies of scale.

READ: Oliver’s Real Food Ltd opens new organic fast food outlet

The new store location has been selected for its traffic flows, ease of access, location of other quick service restaurant outlets and the location of Oliver’s kitchens and service routes.

Importantly, Jax Café is expected to generate an annual revenue of circa A$1.7mln and an EBITDA of A$0.35mln in its first full year.

Oliver’s plans to own and operate circa 33 stores by the end of FY2018 and over 60 stores within the next few years. 

The company listed on the ASX on 21 June 2017 after raising A$15mln by way of an initial public offering, at A$0.20 per share.

The company already has two mln customers each year, and is forecasting a revenue of circa A$42mln in FY18, and a net profit of A$2.4mln.

The growth of the fast food market, investment in highway infrastructure and the growing awareness of healthy food choices are expected to provide a bright future for Oliver’s.





Register here to be notified of future OLI Company articles
View full OLI profile View Profile

Oliver's Real Food Ltd Timeline

Related Articles

Digital marketing
August 03 2017
Lots of marketing groups have pursued a 'buy and build' strategy and have become cumbersome as a result; Be Heard puts the emphasis on maintaining agility
wood chip pile
July 03 2017
Acquisitions over the past year had driven the improvement and will give sales a further kicker in the current year.
Remote meetings camera
July 26 2017
LoopUp shares, which floated at a pound a pop in August 2016, were up another 9% today to after the remote meetings enabler said it had a robust first half

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use