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Belgian bakery chain Le Pain Quotidien has seen its profits disappear completely last year, reaching a 6.6 million dollar loss instead – despite a slight turnover increase of 1.5 %.
New management cost several millions
The company made quite a few one-time expenses, as the annual report for 2017 shows. While turnover increased by 1.5 % to 301 million dollar (260 million euro), profit took a nosedive. 2016’s 2.4 million dollar (2 million euro) profit ended up at a net loss of 6.62 million. In the fourth quarter of 2017, the chain also exceeded its debit agreements with the banks, according to Belgian newspaper De Tijd. The loss can mostly be explained by one-time expenses: last year almost the entire management team left the company, costing 2.2 million dollars.
Still, there is more going on than that: costs increased last year by 5 %, while revenue rose no higher than +1.5 %. This might be due to the high rental prices of the buildings in international prime locations where Le Pain Quotidien likes to be present. The luxury pastry chain has also been experiencing rising debts.
Investor and principal shareholder Cobepa (owned by the de Spoelberch family, one of AB InBev‘s Belgian owner families) will likely be launching a new capital round for the chain. At the start of 2018, several shareholders had already made an additional 10.5 million euro investment. These investors included Le Pain Quotidien’s own founder Alain Coumont as well as the founder of A.S. Adventure, Emiel Lathouwers. Today, Le Pain Quotidien holds 271 establishments in 21 countries. Last year, four new locations were opened.
