Yuppiechef generated R296.2 million in revenue and R19.9 million in operating profit between 1 August 2021 and 2 April 2022.
Mr Price Group acquired 100% of Yuppiechef on 1 August 2021 as a way to gain access to a higher LSM customer base.
Yuppiechef, which was founded in 2006, has two primary operations – Yuppiechef Online and a wholesale division that develops and imports branded goods for wholesale distribution.
At the time, Mr Price CEO Mark Blair said Yuppiechef would benefit from their financial strength to accelerate growth plans.
The growth plans include broadening its product assortment and expanding its physical presence beyond the currently limited number of stores.
Yuppiechef currently has eight retail stores — four in Cape Town, two in Johannesburg, one in Somerset West, and one in Umhlanga.
In May, Yuppiechef founders Andrew Smith and Shane Dryden resigned from the company less than a year after the acquisition.
This was a surprise as Mr Price said Yuppiechef’s management team would continue to run the business with their full support.
How much money Yuppiechef makes
According to the latest Mr Price financial results, Yuppiechef was acquired at a total consideration of R402 million.
The total identified net assets at fair value were R110 million, and the goodwill attributable to acquisition amounted to R292 million.
“The goodwill arising from the acquisition is attributable to the value of expected future omnichannel growth opportunities of the business,” Mr Price said.
Mr Price revealed that Yuppiechef contributed R296.2 million in revenue and R19.9 million in operating profit between 1 August 2021 and 2 April 2022.
Mr Price Group said it could not disclose the combined entity’s revenue, profit, or loss for the current reporting period.
The reason, it said, was because Yuppiechef has a different financial year-end to Mr Price, and its reporting is based on a calendar month compared to the group which follows a retail calendar.
A simple annualisation of the R296.2 million revenue from nine months to a year indicates that Yuppiechef generates around R395 million in revenue per year.
It is not possible to calculate net profit or net income as Mr Price did not report the cost of debt, taxes, and one-off items for Yuppiechef.