(Alliance News) - Cooks Coffee Co Ltd on Tuesday said it expects to meet revenue and profit expectations for the financial year, despite seeing overall revenue decline on delayed returns from store openings.

Cooks Coffee is a New Zealand-based coffee chain.

For the six months that ended September 30, the company reported pretax profit of NZD146,000, around GBP75,431, up 14% from NZD128,000 a year prior.

This was despite a marginal decrease in revenue, down 16% to NZD3.1 million from NZD3.7 million the previous year. Cooks Coffee attributed this to the timing of recognising capital revenue on store openings and expects to secure revenue from these initiatives in the second half of the financial year.

Meanwhile, revenue from operational trading increased to NZD1.9 million from NZD1.4 million a year prior.

Looking ahead, the company highlighted several post-period developments, including a "robust pipeline" of store openings, underpinned by strong consumer demand.

It also appointed Craig Brown as chief financial officer on October 1.

"The company is committed to building the business based on ethical principles and community values. Store sales trends have been very positive in recent times, with the company benefiting from the 'working from home' trend, which we are confident will remain in one form or another and there is a solid pipeline of new stores," said Executive Chair Keith Jackson.

"We are continuing to seek to raise further capital in order to accelerate our growth and we believe that we can achieve growing profitability in a sustainable manner. We look forward to providing further updates in due course."

Cooks Coffee shares were last traded at NZD0.38 on November 24 in Auckland.

By Holly Beveridge; hollybeveridge@alliancenews.com

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