Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — H1 2024 Earnings Presentation
23 slides from Americana Restaurants International's earnings presentation, Aug 1, 2024
Slide 1: H1 24 Results Earnings Presentation
EARNINGS PRESENTATION H1 24 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY August 2024 0 Public
Slide 2: Disclaimer
Disclaimer Cautionary statement regarding forward looking information This presentation includes statements that are, or may be deemed to be, "forward looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "e
Slide 3: Agenda & Presenters
AGENDA & PRESENTERS AMARPAL SANDHU 01 Business Updates CHIEF EXECUTIVE OFFICER HARSH 02 Financial Review BANSAL CHIEF FINANCIAL OFFICER & CHIEF GROWTH OFFICER 03 Appendix SONIKA SAHNI HEAD OF INVESTOR RELATIONS 2 Public
Slide 4: Business Updates
BUSINESS UPDATES 3 Public
Slide 5: H1 24 Performance dashboard
H1 24 Performance dashboard Restaurant Portfolio Revenues $1,052.8m LfL 2,477 stores (vs. H1 23) (vs. H1 23) 273 gross new restaurants added (15.2%) decline (20.3)% decline (LTM1) 36 under construction2 Adj. EBITDA $232.7m Net Profit $80.0m Capex $46.8m (vs. H1 23) (vs. H1 23) 4.4% of revenue (20.2%
Slide 6: Financial Review
FINANCIAL REVIEW 5 Public
Slide 7: 200 net new stores added in last twelve months; 2024 guidance revised to 175–185
200 net new stores added in last twelve months1; net new store guidance for 2024 revised to 175 – 185 Restaurant portfolio evolution (1 Jul 23 – 30 Jun 24) NSO pipeline for 2024E No. of restaurants No. of restaurants 273 (73) (2) 25 (19) 2,477 2,277 248 (52) 94 158 42 175-185 net new stores 158 65 1
Slide 8: Revenue growth constrained by negative LFL sales growth, partially offset by NSOs
Revenue growth remained constrained by negative LFL sales growth due to ongoing regional geopolitical situation, partially offset by growth from NSOs Revenue bridge (H1 23 to H1 24) Revenue mix $m $m % of stable pegged 83% 83% currency 1,241 (15.2%) 1,053 (15.2%) 4 (<1%) 6 (1%) 72 (6%) 66 (6%) 1,165
Slide 9: Revenue recovery strategy: building trust, driving transactions, serving delicious food
Revenue recovery strategy guided by building trust, driving transactions, and serving delicious food Limited-time deals and value offers Product innovation across Power brands New star savers 8 Public
Slide 10: Improvement in ADS trend; however, recovery slower than expected
Improvement in ADS trend; however, recovery slower than expected Average daily sales (ADS) per store trend Impact of Eid shift from Ramadan Days Period impacted by crisis Shift Jul to Jun +9 days -9 days ADS / store 2023-24 2022-23 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Ramadan
Slide 11: Power brands' performance impacted by geopolitical situation and slowdown in demand
Power brands' performance impacted by persistent regional geopolitical situation and slowdown in consumer demand in select markets Revenues by power brands $m Total (17.3%) (21.6%) (15.6%) (19.2%) (9.4%) (19.0%) (11.9%) (24.8%) (15.2%) (20.3%) 1,241 1,053 768 635 207 175 141 128 49 43 H1 23 H1 24 H1
Slide 12: Y-o-Y gross margins improved despite increased focus on value
Y-o-Y gross margins improved despite increased focus on value; driven by commodity prices and revenue management initiatives Cost of inventory1 evolution (Q-o-Q) % Q1 24 vs Q1 23 Q2 24 vs Q2 23 Change2 % (2.9%) (2.7%) 32.5% 32.0% 31.6% 30.9% 29.6% 29.2% 28.9% FY 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 2
Slide 13: 4-wall EBITDA margins preserved, net profit impacted by revenue decline and depreciation
4-wall EBITDA margins preserved, net profit impacted by revenue decline and depreciation charges due to NSOs 4 Wall EBITDA Total Adj. EBITDA Net Profit $m $m $m 373 (16.6%) 311 (20.2%) 292 233 145 (44.8%) 30.0% 29.5% 80 23.5% 22.1% 11.7% 7.6% H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 Margin (% of revenues
Slide 14: Negative NWC maintained; supported by active inventory management
Negative NWC maintained; supported by active inventory management Net Working Capital Gross Capex $m $m (9.2%) (8.8%)1 5.6% 4.4% (222) (195) 108 81 109 130 156 134 69 47 (487) (459) H1 23 H1 24 31 December 2023 30 June 2024 Payables Receivables Inventory Gross capex No. of new restaurants opened NWC
Slide 15: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 14 Public
Slide 16: Appendix
APPENDIX 15 Public
Slide 17: Portfolio evolution – H1 24
Portfolio evolution – H1 24 No. of restaurants1 – by country and brands Openings & closures – H1 24 No. of restaurants – by brand/ category Kazakhstan 121 Iraq 26 27 Lebanon 17 25 Qatar 110 Jordan 65 Morocco 35 Kuwait 245 13 Bahrain 77 9 9 10 UAE 8 8 6 579 3 Egypt 452 Oman 2 63 KSA 687 KFC Pizza Hut
Slide 18: Store closures – H1 24
Store closures – H1 24 Store closures in H1 24 Brand portfolio Closures % of total stores1 H1 24 Power brands 27 1.2% Growth / Niche Brands 10 4.0% Others 22 50.0% Total 39 1.6% Source: Company information 1. Calculated as store closures during H1 24 divided by total stores as of 30 Jun 24 2. Closed
Slide 19: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m 12 (124) Conversion % 58.4% 33.4% 111 9 44 265 202 292 1 233 2 (44) (45) (46) (209) (69) (281) (8) (10)(9) (27) (6) (102) (101) H1 23 H1 24 H1 23 H1 24 Net Cash From Operating Activities Net Cash From Investing Activ
Slide 20: Net income declined due to lower revenue and increased depreciation expense
Net income declined due to lower revenue and increased depreciation expense Net income1 bridge (H1 23 to H1 24) $m 11.7% 7.6% (407bps) Margin3 Margin3 Impact due to lower revenue 4.4 3.1 1.4 146.9 Largely driven by NSOs (59.0) 77.7 (8.6) (6.5) (2.7) (1.2) H1 23 Net Net finance Other Income tax Adj.
Slide 21: EBITDA & Adj. EBITDA reconciliation
EBITDA & Adj. EBITDA reconciliation Post IFRS-16 basis $k H1 23 H1 24 Net profit for the period 146,909 77,724 Income tax and zakat 9,785 8,395 Finance cost (net) excluding finance costs on lease liabilities (2,734) (7,136) Depreciation and amortization (excluding depreciation related to RoU assets)
Slide 22: Key definitions
Key definitions • Adjusted EBITDA: • Net new restaurants : Adjusted EBITDA post IFRS-16 is defined as Net profit for the year plus finance cost Net new restaurant openings are defined as gross openings less closures (net), plus income tax and zakat, plus depreciation and amortisation expenses, impai
Slide 23: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 22 Public
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