Celebrity chef Jamie Oliver and his wife, Jools, have drawn dividends of £2.5 million for the second consecutive year, even as pre-tax profits at their core media and restaurant business declined. According to recent financial disclosures, Jamie Oliver Holdings (JOH) reported a pre-tax profit of £2.4 million in the latest fiscal year, which marks a £1 million drop despite a 6% increase in sales to £28.6 million. This rise in revenue was notably supported by a surge in income from their directly operated restaurants, including the opening of their first such venue since the collapse of the Jamie’s Italian UK chain in 2019.

Jamie Oliver Holdings encompasses a broad spectrum of activities, including TV production, publishing, endorsements, cookery schools, and franchise revenues from international restaurants bearing Oliver’s brand. While directly operated restaurant income increased sharply to £3.6 million from just over £335,000, franchise revenue from overseas locations such as Jamie’s Italian and Jamie’s Deli also grew modestly to £3.8 million. However, income from royalties, endorsements, licences, and TV production saw a 10% decline to £19.8 million, partly because a significant deal with supermarket Tesco concluded last year.

The group’s cookery school business held steady with sales of about £1 million before the launch of a new school within John Lewis’s Oxford Street store, which has reportedly tripled capacity and is performing ahead of expectations. The partnership with John Lewis has created opportunities for further expansion, though specific plans for additional cookery schools remain unannounced. The firm, which became a certified B Corp in 2019 recognising its ethical commitments, had been led by chief executive Kevin Styles for over two years until his departure in December; it is now managed by an operating board with no successor appointed.

This year’s dividend payout contrasts with previous years’ figures. In 2023, the Olivers paid themselves nearly £7 million in dividends amid a strong performance driven by overseas franchise growth and a surge in media and restaurant income. That year, group turnover increased by 8.1% to £29.7 million with pre-tax profits rising 17.5% to £7.7 million. The group expanded its franchise network to 70 restaurants across 22 countries and prepared to open its first company-owned UK restaurant since 2019, Jamie Oliver Catherine Street in London’s West End.

However, the most recent financial results signal a considerable contraction in profitability and dividend payments. In August 2024, it was reported that the Olivers reduced their dividends to £2.5 million, nearly two-thirds less than the previous year, alongside a 37% drop in profits to £3.4 million despite a 14% sales rise to £27 million. The profit decline was attributed to escalating operating costs, including staff wages and expenses tied to launching their flagship London restaurant. Industry conditions remain challenging, with rising costs and a consumer shift away from dining out impacting the hospitality sector more broadly.

Looking ahead, the company has ambitious plans to expand its international restaurant presence, targeting 12 new openings this year, including in Oman and Greece. The evolving business model reflects a pivot back towards direct restaurant operations alongside its established media and licensing ventures. While the reduced dividends and lower profits demonstrate the financial pressures facing the group, the brand appears focused on innovation and expansion in a competitive market.

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Source: Noah Wire Services