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Middle East sales lift BurgerFuel's profit

Published: 1:06PM Tuesday May 22, 2012 Source: ONE News

BurgerFuel Worldwide has reported a surge in profits, largely due to the millions of dollars worth of burger sales in the Middle East.

Net profit, after tax, for the fast food chain was $708,360 for the year to 31 March.

That is a profit increase of $674,847 compared to its maiden profit from the year before of $33,513.

Josef Roberts, BurgerFuel's chief executive, said the company has been dedicated to helping its international franchisees.

"Our focus remains on building an international brand and that entails significant resource to ensure that we establish the business to a high standard, in each country that we enter," he said.

Net revenue for the group was up $1.98 million to $10.3 million, a 24% increase.

Shares for the company also edged up to $1.10, a slight gain from its original listing price of $1.00.

BurgerFuel cited its growth in the Middle East for its overall success, with sales up 110% - around $8.5 million worth.

Six stores were opened in the Middle East over the last year, with three in Dubai, two in Saudi Arabia and one in Iraq.

Egypt, Qatar and Libya are the next countries in line for BurgerFuel stores.

The company said while it was "consolidating" in New Zealand, new stores will start opening next year - starting with one on Wellington's Cuba Street.

BurgerFuel said despite New Zealand's weak economic conditions and lower consumer spending , sales in the country were 5% up on the year before.

The company ruled out a divident payout so it can build cash reserves for more investment into its stores.