Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — Q1 2023 Earnings Presentation
22 slides from Americana Restaurants International's earnings presentation, May 4, 2023
Slide 1: Q1 23 Results Earnings Presentation
EARNINGS PRESENTATION Q1 23 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY Ma y 2023 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 Business Updates SANDHU CHIEF EXECUTIVE OFFICER Financial Review HARSH BANSAL CHIEF FINANCIAL OFFICER & CHIEF GROWTH OFFICER The Way Forward SONIKA SAHNI Appendix HEAD OF INVESTOR RELATIONS 2
Slide 4: Business Updates
= ww BUSINESS UPDATES
Slide 5: Q1 23 Performance dashboard
Q1 23 Performance dashboard Restaurant Portfolio Revenues $589.4m LfL 2,228 stores (vs. Q1 22) (vs. Q1 22) +236 gross new restaurants added +2.1% growth +7.5%2 LfL revenues growth (till 22 March (LTM1) +$12m increase 2023) 63 under construction +1.7% for Q1 23 Adj. EBITDA $126.9m Net Profit $58.1m C
Slide 6: Q1 23 Key updates
Q1 23 Key updates Expansion of power brands Launch of Peet’s Coffee Loyalty program • Successful launch of KFC and • 2 outlets successfully opened in • Pilot launch of the Loyalty Pizza Hut in Baghdad in April the UAE; planned expansion in program for KFC in Q1 to deliver 2023 other markets a differ
Slide 7: Financial Review
[S] = FINANCIAL: REVIEW
Slide 8: Consistent new restaurant rollout with robust pipeline of new openings
Consistent new restaurant rollout; with robust and expanding pipeline of new openings Restaurant portfolio evolution (Q2 22 to Q1 23) Robust pipeline of restaurants for 2023E No. of restaurants 250-300 net 2,029 236 26 (37) (5) 2,228 2,200 NSOs p.a. (8) 229 (24) 210 30 70 187 66 49 63 33 Q1 22 Q2-Q4
Slide 9: Positive LfL growth despite partial shift of Ramadan to Q1 and FX impact
Positive LfL growth despite partial shift of Ramadan to Q1 in 2023 and FX impact due to Egypt and Lebanon Revenue bridge (Q1 22 to Q1 23) Revenue mix $m $m % of stable 2.1% pegged currency 82% 83% 578 +2.1% 589 6 (1%) 2 (<1%) 34 (6%) 34 (6%) Timeline LfL Growth % 538 553 1 January – 22 March 2023 7.
Slide 10: Solid mid single digit LfL growth up until the start of Ramadan
Solid mid single digit LfL growth up until the start of Ramadan Revenues by power brands $m Total +3.8% +4.2% (3.7%) (4.5%) +4.9% +1.7% +10.6% (12.4%) +2.1% +1.7% +7.5% 362 589 102 578 349 99 67 64 25 22 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 23 growth Q1 23 LfL growth LfL gr
Slide 11: Expected reduction in cost of inventory by H2 23
Expected reduction in cost of inventory by H2 23, once existing strategically built inventory is phased out Cost of inventory evolution (Q-o-Q) % 33.1% 32.6% 32.5% 31.8% 30.2% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 H2 23E Source: Company information 10 1 Cost of inventory refers to cost of materials, filing
Slide 12: Profitability impacted by commodity inflation and lower March sales volumes
Profitability impacted due to commodity driven inflationary headwinds and lower sales volumes in March, on account of Ramadan 4 Wall EBITDA Total Adj. EBITDA Net Profit $m $m $m (4.5%) 176 168 (5.6%) 134 127 72 (19.2%) 58 30.5% 28.6% 23.3% 21.5% 12.5% 9.9% Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Margin
Slide 13: Continue to maintain negative NWC; decline in inventory
Continue to maintain negative NWC; decline in inventory due to management efforts to optimize inventory levels Net Working Capital Gross Capex $m $m (6.9%)1 (7.9%) 5.1% 5.3% (188) (165) 104 33 49 106 174 154 (465) (425) 29 31 31 December 2022 31 March 2023 Q1 22 Q1 23 Payables Receivables Inventory
Slide 14: The Way Forward
THE WAY FORWARD 13
Slide 15: 2023 Outlook and key focus areas
2023 Outlook and key focus areas Expand restaurant Egypt – Focus on Improvement in GP Continue developing Continue to scale up portfolio with approx. operations, people margin by H2 23, digital capabilities & new brands – Pizza 250-300 net new transformation, once existing optimizing off-premise Hut
Slide 16: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 15
Slide 17: Appendix
APPENDIX 16
Slide 18: Portfolio evolution
Portfolio evolution No. of restaurants – by country and brands Openings & closures – Q1 23 No. of restaurants – by brand/ category Kazakhstan 102 Iraq 17 18 Lebanon 18 Qatar 101 14 Jordan 63 Morocco 25 Kuwait 227 9 Bahrain 75 UAE 4 4 533 2 2 Egypt 450 Oman - - - - 60 KSA 557 KFC Pizza Hut Hardee's K
Slide 19: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m (54) 21 Conversion % 97.1% 21.9% 149 91 91 21 17 10 (18) (52) (52) 134 127 (151) (29) (31) (41) (5) (23) (3) (4) (50) Q1 22 Q1 22 Q1 23 Q1 23 Q1 22 Q1 23 Net Cash From Financing Activities Net Cash From Investing act
Slide 20: EBITDA & Adj. EBITDA reconciliation
EBITDA & Adj. EBITDA reconciliation Post IFRS-16 basis $k Q1 22 Q1 23 Net profit for the year 72,900 58,791 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 4,975 2,871 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabilities (233) (1,525) Depr
Slide 21: Key definitions
Key definitions • Adjusted EBITDA: • Net new restaurants: Adjusted EBITDA post IFRS-16 is defined as Net profit for the year plus Net new restaurant openings are defined as gross openings less closures finance cost (net), plus income tax and zakat and contribution to Kuwait • Net profit: Foundation
Slide 22: Thank You
THANK YOU Investor.Relations@americanarestaurants.com 21
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