Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — 9M 2023 Earnings Presentation
26 slides from Americana Restaurants International's earnings presentation, Nov 2, 2023
Slide 1: Earnings Presentation Q3 & 9M 23 Results
EARNINGS PRESENTATION Q3 & 9M 23 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY Nov em ber 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 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: Q3 23 Performance dashboard
Q3 23 Performance dashboard Restaurant Portfolio Revenues $655.5m LfL 2,338 stores (vs. Q3 22) (vs. Q3 22) +76 gross new restaurants added +5.9% growth +3.8% LfL revenues growth in Q3 23 +$36m increase Adj. EBITDA $154.8m Net Profit $81.9m Capex $38.7m (vs. Q3 22) (vs. Q3 22) 5.9% of revenue 15.0% g
Slide 6: 9M 23 Performance dashboard
9M 23 Performance dashboard Restaurant Portfolio Revenues $1,897.0m LfL 2,338 stores (vs. 9M 22) (vs. 9M 22) +294 gross new restaurants added +7.1% growth +6.0% LfL revenues growth (LTM1) +$126m increase 92 under construction Adj. EBITDA $446.5m Net Profit $226.7m Capex $107.7m (vs. 9M 22) (vs. 9M 2
Slide 7: Q3 23 Key updates
Q3 23 Key updates Continued expansion of Pizza Hut in All-Women led Pizza Hut Krispy Kreme market entry in KSA Kazakhstan • Under our “Unleash Her Greatness” • In September 2023, successfully initiative, we opened our first All- • Successful launch of Krispy Kreme opened 50th Pizza Hut store1 in the
Slide 8: Financial Review
[S] = FINANCIAL: REVIEW
Slide 9: 184 gross openings till Q3 2023; on track to open 250-260 net stores for FY2023
184 gross openings till Q3 2023; on track to open 250-260 net stores for FY2023 Restaurant portfolio evolution (1 Oct 22 – 30 Sept 23) NSO pipeline for 2023E No. of restaurants 250-260 net 80 93 155 NSOs 294 (46) (3) 30 2,338 (14) 2,090 264 (29) 2 10 184 6 110 110 92 9M 22 Q4 22 9M 23 Q4 23E FY23 gu
Slide 10: Revenue growth driven by NSOs and LfL growth; adversely impacted by $90m due to FX
Revenue growth driven by NSOs and LfL growth; adversely impacted by $90m due to FX Revenue bridge (9M 22 to 9M 23) Revenue mix $m $m % of stable 80% 82% 7.1% pegged currency 1,771 7.1% 1,897 5 (<1%) 21 (1%) 112 (6%) 109 (6%) 1,641 1,779 (93%) (94%) 3 1 2 9M 22 9M 23 Power Brands Growth/Niche Brands
Slide 11: Q3 23 – Solid mid single digit growth in total revenues
Q3 23 – Solid mid single digit growth in total revenues; partially offset due to seasonality impact of Eid-al-Adha in Q2 23 (vs. Q3 22 in prior year) Revenues by Power Brands (Q3 22 and Q3 23) $m Total 6.3% 4.3% 7.2% 5.3% 13.2% 3.8% 15.1% (7.8%) 5.9% 3.8% 656 619 405 381 101 108 76 67 22 25 Q3 22 Q3
Slide 12: 9M 23 – Total LfL revenue growth driven by KFC, Pizza Hut and Hardee's
9M 23 – Total LfL revenue growth driven by KFC, Pizza Hut and Hardee’s performance Revenues by Power Brands (9M 22 and 9M 23) $m Total 8.8% 8.1% 3.5% 2.2% 12.3% 5.9% 14.0% (8.0%) 7.1% 6.0% 1,897 1,172 1,771 1,078 305 316 218 74 194 65 9M 22 9M 23 9M 22 9M 23 9M 22 9M 23 9M 22 9M 23 9M 22 9M23 9M 23
Slide 13: Further reduction in cost of inventory in Q3 23
Further reduction in cost of inventory in Q3 23 on the back of softening in prices of key commodities Cost of inventory1 evolution (Q-o-Q) % Q1 23 vs Q1 22 Q2 23 vs Q2 22 Q3 23 vs Q3 22 Change2 % 2.2%3 (0.2%) (2.2%) 33.1% 32.6% 32.5% 31.8% 31.6% 30.9% 30.2% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23
Slide 14: Q3 23 – 4 wall EBITDA margin improvement driven by lower cost inventory
Q3 23 – 4 wall EBITDA margin improvement driven by lower cost inventory; net profit grew 9.9% supported by operational efficiencies 4 Wall EBITDA (Q3 22 and Q3 23) Total Adj. EBITDA (Q3 22 and Q3 23) Net Profit (Q3 22 and Q3 23) $m $m $m 10.0% 194 177 15.0% 155 135 9.9% 82 75 28.5% 29.7% 12.0% 12.5%
Slide 15: 9M 23 – Growth in profitability through efficiencies
9M 23 – Growth in profitability through efficiencies achieved by labor optimization and ZBB initiatives driving net profit margin expansion 4 Wall EBITDA (9M 22 and 9M 23) Total Adj. EBITDA (9M 22 and 9M 23) Net Profit (9M 22 and 9M 23) $m $m $m 9.9% 567 10.4% 15.8% 516 447 405 227 196 29.1% 29.9% 2
Slide 16: Negative NWC due to optimized inventory levels
Negative NWC due to optimized inventory levels; and increase in trade payables Net Working Capital Gross Capex $m $m (7.9%) (8.9%)1 5.7% 5.7% (188) (222) 110 184 104 122 174 139 108 101 (465) (483) 31 Dec 2022 30 Sept 2023 9M 22 9M 23 Payables Receivables Inventory Gross capex No. of new restaurants
Slide 17: The Way Forward
THE WAY FORWARD 16
Slide 18: Guidance 2023
Guidance 2023 AMR expects to continue its expansion plan and add 250-260 net new restaurants during 2023, with a focus on 1 Saudi Arabia The Company also looks to improve profitability in 2023 on account of commodity price decrease and improved 2 operational efficiencies Recent geopolitical developm
Slide 19: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 18
Slide 20: Appendix
APPENDIX 19
Slide 21: Portfolio evolution – 9M 23
Portfolio evolution – 9M 23 No. of restaurants – by country and brands Openings & closures – 9M 23 No. of restaurants – by brand/ category Kazakhstan 102 Iraq 20 Lebanon 18 59 53 Qatar 105 Jordan 63 Morocco 29 35 Kuwait 238 Bahrain 76 18 19 UAE 553 10 7 5 6 Oman 63 1 Egypt 449 KFC Pizza Hut Hardee's
Slide 22: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m Conversion % 51.6% 66.3% 70 96 195 142 34 7 451 326 405 447 (12) 1 (95) (96) (106) (243) (8) (13) (260) (37) (14) (129) (153) 9M 22 9M 22 9M 23 9M 23 9M 22 9M 23 Net Cash From Operating Activities Net Cash From Inves
Slide 23: EBITDA & Adj. EBITDA reconciliation – Q3 22 and Q3 23
EBITDA & Adj. EBITDA reconciliation – Q3 22 and Q3 23 Post IFRS-16 basis $k Q3 22 Q3 23 Net profit for the year 76,152 83,513 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 1,484 2,859 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabilities
Slide 24: EBITDA & Adj. EBITDA reconciliation – 9M 22 and 9M 23
EBITDA & Adj. EBITDA reconciliation – 9M 22 and 9M 23 Post IFRS-16 basis $k 9M 22 9M 23 Net profit for the year 199,363 230,422 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 7,603 12,644 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabiliti
Slide 25: 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 26: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 25
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