Th International Limited · NASDAQ:THCH
Th International — Q1 2024 Earnings Presentation
18 slides from Th International's earnings presentation, Jun 5, 2024
Slide 1: Tims China Q1 2024 Earnings Presentation
Tims China Nasdaq: THCH Q1 2024 Earnings Presentation June 5th, 2024
Slide 2: Disclaimer and Risk Factors
Disclaimer and Risk Factors This presentation ("Presentation") is provided by TH International Limited (“THIL") for informational purposes only and does not constitute, or form a part of, an offer to sell, or the solicitation of an offer to sell or an offer to buy, any securities. The information he
Slide 3: 01. Business Update
01. Business Update
Slide 4: Resilient Top Line; System Sales & Loyalty Membership Highlights
Resilient Top Line; System Sales & Loyalty Membership Highlights YoY % Q1’22 Q1’23 Q1’24 (24 vs 23) Total stores 424 648 917 41.5% (1) Net new stores 34 31 5 (83.9)% Registered Loyalty club members (mm) 6.9 12.4 20.3 63.6% (2) Digital orders % 75.4% 79.1% 85.4% 6.3ppts Total revenues (RMBmm) 224.7 3
Slide 5: Focus on Profitable and Capital-Efficient Growth
Focus on Profitable and Capital-Efficient Growth Total stores Market entry Store formats 1Q’23 1Q’24 912 917 11% 763 7% 22% 700 648 8% 70 85% 40 67% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q‘23 1Q’24 Company-owned Stores Franchised Stores Tims Express (Franchised) 5 Net New Store Openings in 2024Q1 (14) Net
Slide 6: Our Trademark: Product Innovation Pleasing Local Tastes
Our Trademark: Product Innovation Pleasing Local Tastes Tims Double Double Retro Donuts Cherry Americano Rich Chocolate Flavored Latte
Slide 7: Our Differentiated Value Proposition: "Coffee Plus"
Our Differentiated Value Proposition: “Coffee Plus” Percentage of orders with food Signature combos and bagel sandwiches 41.0% 43.7% 43.8% 47.1% 44.2% 44.2% 54.5% 54.7% 52.7% +8.5ppts 18.2% 18.3% 13.2% 17.2% 15.2% 13.8% 12.6% 14.3% 13.9% 36.8% 36.3% 36.4% 35.5% 30.0% 31.9% 31.6% 27.1% 29.4% Q1’22 Q2
Slide 8: Bagel Products Empower "Coffee Plus" Strategy Through All Seasons
Bagel Products Empower “Coffee Plus” Strategy Through All Seasons Bagel Tuntun Card Campaign – Bagel SKUs RMB 9.9 to Enjoy A Delicious Bagel 23 15 17 14 14 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Number of bagels sold 7.0 6.4 4.8 5.5 3.5 Q1’23 Q2’23 Q3’23 Q4’23 Q1'24 Number of bagels sold (mm)
Slide 9: Further Expansion of Our Franchise Network on Track
Further Expansion of Our Franchise Network on Track Total Sub-Franchise Stores Penetrated Into New Cities With Our Franchisees 302 211% 283 174 129 97 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 First store in Huzhou, a tier-2 city First store in Jinshan District, a located in Zhejiang Province suburban district
Slide 10: Building Family-Friendly Community, Attracting Gen Z and Gen Alpha
Building Family-Friendly Community, Attracting Gen Z and Gen Alpha Celebrate Tim Hortons' 60th Scratch Cards Campaign Tims x Dove Tims x Tangle Angel Anniversary
Slide 11: Tims Express: Profitable Growth with Stable of Renowned Partners
Tims Express: Profitable Growth with Stable of Renowned Partners “Tims Express” in Beijing “Tims Express” in Chengdu “Tims Express” in Hangzhou with Easy Joy with Century 21 Courtyard by Marriott with Ling Ka “Tims Express” in Shanghai “Tims Express” in Subway “Tims Express” in Wuhan with Haier Sany
Slide 12: Popeyes – Successful Launches of Chicken Burgers and New Desserts
Popeyes® – Successful Launches of Chicken Burgers and New Desserts Operating highlight Opened 14 Popeyes Stores Favored by Consumers ✓ 14 Popeyes stores successfully launched ✓ Three chicken burger introduced to customers during the Spring Festival Period ✓ "Lucky Crispy Ice Cream" (“好巧脆皮冰淇淋”) desse
Slide 13: 02. Financial Highlights
02. Financial Highlights
Slide 14: Resilient Top-line Driven by Digital Sales and Franchise Store Growth
Resilient Top-line Driven by Digital Sales and Franchise Store Growth Total Revenues (mm) Net New Store Openings 3.1% 436.4 149 411.7 391.2 131 336.5 346.8 305.7 301.5 224.7 63 179.2 46 52 34 16 31 5 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’2
Slide 15: Steady Growth of Loyalty Club Members and Digital Orders
Steady Growth of Loyalty Club Members and Digital Orders Number of Orders (mm) Registered Loyalty Club Members (mm) 63.6% 15.4 13.3 13.5 12.3 9.8 10.9 9.2 6.2 4.7 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 20.3 18.7 Digital Orders% (1) 16.9 14.7 11.3 12.4 8.9 6.9 7.5 85.4% 82.6% 83.6% 80.
Slide 16: Improved Cost Structure and Operational Efficiency
Improved Cost Structure and Operational Efficiency Q1 YOY 2022 2023 2024 (24 vs. 23) (1) 100bp Food and packaging 33.0% 35.9% 34.9% (1) 90bp Rental and property management fee 27.7% 23.0% 22.1% (1) 130bp Payroll and employee benefits 34.0% 23.5% 22.2% (11.9)% 1.9% 2.0% +10bp Adjusted store EBITDA ma
Slide 17: Near-Term Financial Priorities
Near-Term Financial Priorities Improve Adjusted Corporate EBITDA Margins(1) Optimize Cost Structure Deliver Sustainable Revenue Growth Expand Store-Level Profitability Accelerate Franchising Store Development ____________________ (1) Calculated as adjusted corporate EBITDA as a percentage of total r
Slide 18: Thank you!
About TH International Limited TH International Limited (Nasdaq: THCH) (“Tims China”) is the parent company of the exclusive master franchisees of Tim Hortons coffee shops in mainland China, Hong Kong and Macau and Popeyes restaurants in mainland China and Macau. Tims China was founded by Cartesian