Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — FY2023 Earnings Presentation
30 slides from Americana Restaurants International's earnings presentation, Feb 15, 2024
Slide 1: Earnings Presentation FY23 Results
EARNINGS PRESENTATION FY23 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY Febru a ry 2024 0
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 02 Financial Review HARSH BANSAL CHIEF FINANCIAL OFFICER & CHIEF GROWTH OFFICER 03 The Way Forward SONIKA SAHNI HEAD OF INVESTOR RELATIONS 04 Appendix 2
Slide 4: Business Updates
= ww BUSINESS UPDATES
Slide 5: Highlights from our journey in 2023
Highlights from our journey in 2023 Jan Feb Mar Peet’s Coffee launched in Received Yum! Digital Gallup Exceptional the UAE Disruptor Award Workplace Award 2023 Apr May Jun KFC and Pizza Hut CKE Digital Excellence Americana Restaurants launched in Baghdad Award for Hardee’s included in the MSCI UAE I
Slide 6: Adapting, overcoming, and delivering: A year of business resilience and commitment
Adapting, overcoming, and delivering: A year of business resilience and commitment Core performance metrics Achievements Revenue guidance ✓ Revenue growth of 1.5% Margin improvement ✓ Gross margin of 68.9%1 Restaurant portfolio growth ✓ 300 gross new store openings (252 net new stores) ✓ Pizza Hut e
Slide 7: FY23 Performance dashboard
FY23 Performance dashboard Restaurant Portfolio Revenues $2,413.1m LfL 2,435 stores (vs. 2022A) (vs. 2022A) +300 gross new restaurants added 1.5% growth (1.3%) LfL revenues growth +252 net new restaurants added +$35m increase Adj. EBITDA $550.8m Net Profit $259.5m1 Capex $167.9m (vs. 2022A) (vs. 202
Slide 8: Groundbreaking restaurant rollouts with cutting-edge concepts
Groundbreaking restaurant rollouts with cutting-edge concepts Dubai, UAE Salwa, Kuwait Doha, Qatar 30-Nov-23 135 sqm 24-Dec-23 221 sqm 29-Dec-23 496 sqm 7
Slide 9: Financial Review
[S] = FINANCIAL: REVIEW
Slide 10: Consistent growth in restaurant rollout with addition of 252 net new stores in FY23
Consistent growth in restaurant rollout with addition of 252 net new stores in FY23 Restaurant portfolio evolution (1 Jan 23 – 31 Dec 23) Restaurant openings (2019A - 2023A) No. of restaurants 67 (33) 110 173 252 300 (48) 2,435 30 (14) 2,183 (34) 300 270 220 164 116 61 1 Jan 23 Gross Openings Closur
Slide 11: Despite record new store openings; revenue growth impacted by FX and geopolitical situation
Despite record new store openings; revenue growth impacted due to unfavorable FX movements and regional geopolitical situation which impacted Q4 Revenue bridge (FY 22 to FY 23) Revenue bridge (Q4 22 to Q4 23) $m $m 1.5% (15.0%) Period LfL Growth % Month LfL Growth % 9M 23 6.0% Oct 23 (9.4%) Q4 23 (2
Slide 12: Crisis impact varied across countries; UAE and KSA least impacted
Crisis impact varied across countries; within GCC, the UAE and KSA were least impacted during Q4 23 Impact intensity 2023 revenue share % UAE KSA Kazakhstan Iraq Low impact 60% - 65% Kuwait Qatar Bahrain Morocco Lebanon Medium impact 20% - 25% Egypt Oman Jordan High impact 10% - 15% 11
Slide 13: LfL sales bottomed out in Q4 23, early signs of recovery
LfL sales bottomed out in Q4 23, early signs of recovery in some countries Average daily sales (ADS) per store trend Impact of Ramadan EID shift from Jul to Impact of crisis Days Shift Jun 4000 +9 days -9 days ADS / store 3500 2023-24 2022-23 3000 2500 2000 1500 1000 500 0 Jan Feb Mar Apr May Jun Ju
Slide 14: Positive momentum in LfL revenue growth until Q3 23; Q4 impacted by geopolitical situation
Positive momentum in LfL revenue growth until Q3 23; Q4 23 impacted by geopolitical situation, affecting full year 2023 performance Revenues by Power Brands $m 9 months (Jan to Sept)1 4th quarter1 Full year1 2022 1,078 377 1,455 2023 1,172 8.8% 8.1% 307 (18.6%) (22.6%) 1,479 1.7% 0.0% 2022 305 98 40
Slide 15: Unchanged mix of Power Brands; with stable channel mix
Unchanged mix of Power Brands; with stable channel mix Revenue mix Channel mix $m $m 2022A 2023A1 2,379 1.5% 2,413 6% 5% 10% 21% 10% 21% 21 (1%) 13 (1%) 145 (6%) 146 (6%) 39% 24% 39% 24% 2,212 (93%) 2,254 (93%) Dine-in Takeaway Home Delivery(HD) Drive-thru Others Revenues in stable pegged currencies
Slide 16: Continued reduction in cost of inventory
Continued reduction in cost of inventory driven by commodity reduction, pricing, and revenue management initiatives Cost of inventory1 evolution (Q-o-Q) % Q1 23 vs Q1 22 Q2 23 vs Q2 22 Q3 23 vs Q3 22 Q4 23 vs Q4 22 Change2 % 2.2%3 (0.2%) (2.2%) (3.4%) 33.1% 32.6% 32.5% 31.8% 31.6% 30.9% 30.2% 29.2%
Slide 17: Despite the impact on Q4 performance, profitability metrics improved in FY23
Despite the impact on Q4 performance, profitability metrics improved in FY23 Profitability Cost measures to mitigate crisis impact Period 9 months (Jan-Sept)1 4th quarter1 Full year1 ✓ Supply chain optimization; discounts 4-wall EBITDA 2022 516 29.1% 176 28.9% 692 29.1% by food materials and packagi
Slide 18: Store expansion underpinned by a compelling two-year payback period
Store expansion underpinned by a compelling two-year payback period Key metrics by restaurants1 New restaurant openings by brands New Restaurants Avg. Capex / new Brand Payback (years) openings restaurant ($k) 132 479 1.7 12% 30% 42 432 2.4 29% 91 312 2.6 9% 128 134 1.8 20% Others 52 294 4.1 KFC Har
Slide 19: Continued negative NWC due to lower inventory levels and increase in trade payables
Continued negative NWC due to lower inventory levels and increase in trade payables Net Working Capital Gross Capex $m $m (7.9%) (9.2%)1 6.4% 7.0% (188) (222) 220 300 104 109 174 156 168 152 (465) (487) 31 Dec 2022 31 Dec 2023 2022A 2023A Payables Receivables Inventory Gross capex No. of new restaur
Slide 20: The Way Forward
THE WAY FORWARD 19
Slide 21: Business recovery initiatives will anchor on targeting, pricing, promotion & marketing
Business recovery initiatives will anchor on targeting, pricing, promotion & marketing… 1 • Emphasis on customer retention while also leveraging the capabilities of digital channels Targeting • Drive awareness for acquiring new customers while consistently retaining a strong digital focus 2 • Differ
Slide 22: Leveraging value, crave & familiarity to drive transactions
…leveraging value, crave & familiarity to drive transactions Transactions imperative: Bring customers back to our brands Value Crave Familiarity ✓ Communicate ✓ Showcase ✓ Discounts & signatures & core taste and bounce backs indulgence ✓ Comms around ✓ Free delivery nostalgia ✓ Focus on quality and
Slide 23: 2024 guidance
2024 guidance Revenue recovery NSO rollout Profitability improvement Operational efficiency Revenue recovery with focus Growth journey to continue Gross margin in 2024 is Continued focus and raising on establishing trust, driving with rollout of NSOs (est. 200 expected to be better than the bar on o
Slide 24: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 23
Slide 25: Appendix
APPENDIX 24
Slide 26: Portfolio evolution
Portfolio evolution No. of restaurants – by country and brands Openings & closures – FY 23 No. of restaurants – by brand/ category Kazakhstan 114 Iraq 23 Lebanon 18 97 Qatar 108 84 Jordan 68 Morocco 34 56 Kuwait 246 Bahrain 76 33 30 UAE 564 9 10 13 14 2 Egypt 453 Oman 65 KFC Pizza Hut Hardee's Krisp
Slide 27: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m Conversion % 49.3% 52.1% 107 92 183 179 35 2 536 551 540 454 (60) (140) (147) (166) (287) (9) (13) (308) (31) (16) (172) (200) (7) 2022A 2023A 2022A 2023A Net Cash From Operating Activities Net Cash From Investing ac
Slide 28: EBITDA & Adj. EBITDA reconciliation – 2022A and 2023A
EBITDA & Adj. EBITDA reconciliation – 2022A and 2023A Post IFRS-16 basis $k 2022A 2023A Net profit for the year 262,955 262,331 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 8,743 13,041 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabiliti
Slide 29: Key definitions
Key definitions • Adjusted EBITDA: • Net capex: Adjusted EBITDA post IFRS-16 is defined as Net profit for the year plus Defined as Gross capex less proceeds from sale of property and finance cost (net), plus income tax and zakat and contribution to Kuwait equipment. Gross capex defined as purchase o
Slide 30: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 29
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