Premier Capital plc, a company which forms part of Hili Ventures, served 337,190 guests across its 185 McDonald’s restaurants on 1st June 2023, a record-breaking number for the company.

The results were announced as part of Premier Capital’s Annual Report for the financial year ended 31st December 2023, released on Friday.

Premier Capital is the developmental licencee for popular fast food chain McDonald’s in Estonia, Greece, Latvia, Lithuania, Malta, and Romania, operating 185 restaurants and employing over 11,000 people.

During 2023, the restaurants served 85 million customers across its six markets, a significant increase from the 77 million that it served during 2022. This was coupled with 11 new store openings, prompting the number of restaurants it operates to rise from 174 in 2022 to 185 in 2023.

As a result, revenue for the reporting year surged upwards by 21 per cent to €645.6 million (2022: €533.6 million). Unsurprisingly, 54 per cent and 16 per cent of the total were generated from operations in Romania and Greece, respectively. As at the end of 2023, Premier Capital had the most McDonald’s restaurants in Romania (102) and Greece (32). While revenue from Lithuania accounted for 10 per cent of the total, that from Latvia and Malta represented seven per cent of the total each. Revenue from operations in Estonia made up the rest (six per cent).

On the other hand, cost of sales was also on the rise, going up to €505.4 million in 2023 (2022: €419.7 million). This was largely a result of the increase in stores and sales, prompting a proportionate increase in raw materials and consumables used of 17.5 per cent (2023: €215.1 million; 2022: €183.1 million).

Similarly, selling expenses and administrative expenses rose to €42.7 million and €35.8 million, respectively. Wages and salaries for 2023 came in at a total of €154.6 million, substantially higher than the €126.5 million incurred in 2022.

Premier Capital recorded €50.6 million in pre-tax profit during 2023, an increase of 13.9 per cent over 2022’s €44.5 million.

Net assets as at 31st December 2023 amounted to €103 million.

In 2023, Premier Capital invested heavily in its restaurants, with a total of €33.6 million being invested in new stores and the refurbishment of existing ones. Throughout these renovations, technologies such as Mobile Order and Pay were implemented.

During the year, the Board of Directors declared an interim dividend of €39 million, yet it has now recommended the payment of a final dividend.

Commenting on the results, Chairman and CEO Melo Hili said: “Our measure of success is not just financial.”

“We are proud of every important milestone we achieve, but our driving force is to live true to McDonald’s values. Doing business ethically, building real trust with our customers, nurturing talent across our organisation, and being strong partners who support sustainable growth are the pillars of our strategy,” he continued.

He added that Premier Capital has also aimed to be a “good neighbour” within the communities it operates, and is determined to continue reducing its environmental footprint and increase its positive impact.

Main Image:

McDonald's in Romania

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Written By

Fabrizio Tabone

Fabrizio has a passion for the economy and technology, especially when it comes to innovation. Aside from this, he also has a passion for football and movies, and so you will often find him either with a ball to his feet or at the cinema checking out the latest releases.