Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — Q3 2024 Earnings Presentation
28 slides from Americana Restaurants International's earnings presentation, Nov 4, 2024
Slide 1: Q3 & 9M 24 Results
EARNINGS PRESENTATION Q3 & 9M 24 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY N o v e m be r 2 0 2 4 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 02 Financial Review HARSH BANSAL CHIEF FINANCIAL OFFICER & CHIEF GROWTH OFFICER 03 Concluding Remarks and Q&A SONIKA SAHNI HEAD OF INVESTOR RELATIONS 04 Appendix 2 Public
Slide 4: Business Updates
BUSINESS UPDATES 3 Public
Slide 5: Q3 24 Key updates
Q3 24 Key updates Continued store expansion in KSA Krispy Kreme market entry in Peets Coffee expansion Morocco • 700+ stores in KSA as of 30 • 1st Peets Coffee store opened in September • Launch of Krispy Kreme in Abu Dhabi, in line with expansion Morocco with the first hot light plans store opening
Slide 6: Multiple initiatives to drive transactions through continued product innovation, value offers and new constructs
Multiple initiatives to drive transactions through continued product innovation, value offers and new constructs Product innovation Value constructs Value initiatives to drive traffic Digital promotions Everyday value UAE Competitive offers on Across markets for Americana apps and accessibility and
Slide 7: Continued strategic investments in digital capabilities
Continued strategic investments in digital capabilities ADP kiosks have been installed in KFC locations in Kuwait and Qatar, and are now operational in four KFC markets Following KFC’s success, Loyalty program launched for Hardee’s in KSA Successful expansion of Americana Last Mile Platform to Kazak
Slide 8: Q3 24 Performance dashboard
Q3 24 Performance dashboard Restaurant Portfolio Revenues $555.0m LfL 2,504 stores (vs. Q3 23) (vs. Q3 23) +32 gross new restaurants added (15.3%) decline (18.0%) decline in Q3 24 Adj. EBITDA $117.9m Net Profit $37.4m Capex $26.8m (vs. Q3 23) (vs. Q3 23) 4.8% of revenue (23.8%) decline (54.3%) decli
Slide 9: 9M 24 Performance dashboard
9M 24 Performance dashboard Restaurant Portfolio Revenues $1,607.8m LfL 2,504 stores (vs. 9M 23) (vs. 9M 23) +229 gross new restaurants added (15.2%) decline (19.6%) decline (LTM1) 53 under construction Adj. EBITDA $350.6m Net Profit $117.4m Capex $73.6m (vs. 9M 23) (vs. 9M 23) 4.6% of revenue (21.5
Slide 10: Selective store openings amidst evolving regional challenges; net new store guidance revised
Selective store openings amidst evolving regional challenges; net new store guidance for 2024 revised to 150 – 160 Restaurant portfolio evolution (1 Oct 23 – 30 Sept 24) NSO pipeline for 2024E No. of restaurants 155 97 69 150-160 (63) (2) net NSOs 229 2,504 24 (15) 2,338 205 (46) 125 20 184 33 116 1
Slide 11: Financial Review
FINANCIAL REVIEW 10 Public
Slide 12: Revenue growth impacted by regional conflict, high inflation, and slow consumer demand
Revenue growth impacted by regional conflict situation, high inflation, and slowness in consumer demand in some markets, despite support from NSOs Revenue bridge (9M 23 to 9M 24) Revenue mix $m $m % of stable pegged 82% 83% currency 1,897 (15.2%) 1,608 (15.2%) 5 (<1%) 112 (6%) 7 (<1%) (94%) 100 (6%)
Slide 13: Recovery observed on the back of strategic efforts
Recovery observed on the back of strategic efforts Transactions recovery leading to month-on-month improvement in ADS per store in Q3 24 Impact of EID shift Ramadan from Jul to Impact of crisis Days Shift Jun Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Ramadan Eid Post May Jun Jul Au
Slide 14: Q3 24 - Continued conflict, inflation, and slowness impacted Power brands
Q3 24 - Continued conflict, inflation, and slowness in consumer demand in certain markets impacted the performance of Power brands… Revenues by Power Brands (Q3 23 and Q3 24) $m Total (17.0%) (20.2%) (13.4%) (15.1%) (8.6%) (12.6%) (18.0%) (27.0%) (15.3%) (18.0%) 656 555 405 108 336 94 76 70 25 20 Q3
Slide 15: …with similar trends observed across Power brands
…with similar trends observed during across Power brands Revenues by Power Brands (9M 23 and 9M 24) $m Total (17.2%) (21.1%) (14.9%) (17.8%) (9.1%) (17.1%) (13.9%) (25.6%) (15.2%) (19.6%) 1,897 1,172 1,608 971 316 269 218 74 198 63 9M 23 9M 24 9M 23 9M 24 9M 23 9M 24 9M 23 9M 24 9M23 9M24 9M 24 grow
Slide 16: Gross margins maintained in Q3 24 despite value offerings and discounts
Gross margins maintained in Q3 24 despite value offerings and discounts; driven by favorable commodity trends and procurement initiatives Cost of inventory1 evolution % Q1 24 vs Q1 23 Q2 24 vs Q2 23 Q3 24 vs Q3 23 Change2 % (2.9%) (2.7%) (1.7%)3 32.5% 32.0% 31.6% 30.9% 29.6% 29.2% 29.1% 28.9% FY 22
Slide 17: Lower revenue and higher delivery costs impacted operating margins
Lower revenue and higher delivery costs impacted operating margins; net income dilution due to higher depreciation charge, and taxes in the UAE 4 Wall EBITDA (Q3 23 and Q3 24) Total Adj. EBITDA (Q3 23 and Q3 24) Net Profit (Q3 23 and Q3 24) $m $m $m (20.9%) 194 (23.8%) 155 154 118 82 (54.3%) 29.7% 2
Slide 18: Margin dilution on account of lower revenue, higher depreciation and higher taxes
Margin dilution on account of lower revenue, higher depreciation charge and higher taxes 4 Wall EBITDA (9M 23 and 9M 24) Total Adj. EBITDA (9M 23 and 9M 24) Net Profit (9M 23 and 9M 24) $m $m $m 567 (18.1%) (21.5%) 464 447 351 227 (48.2%) 117 29.9% 28.9% 23.5% 12.0% 21.8% 7.3% 9M 23 9M 24 9M 23 9M 2
Slide 19: Negative NWC maintained despite reduction in payables
Negative NWC maintained despite reduction in payables Net Working Capital Gross Capex $m $m (9.2%) (8.6%)1 5.7% 4.6% (222) (182) 184 113 109 121 156 144 108 74 (487) (447) 31 Dec 2023 30 Sep 2024 9M 23 9M 24 Payables Receivables Inventory Gross capex No. of new restaurants opened NWC NWC % of revenu
Slide 20: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 19 Public
Slide 21: Appendix
APPENDIX 20 Public
Slide 22: Portfolio evolution – 9M 24
Portfolio evolution – 9M 24 No. of restaurants – by country and brands Openings & closures – 9M 24 No. of restaurants – by brand/ category Kazakhstan 121 Iraq 27 38 Lebanon 17 32 Qatar 109 Jordan 64 Morocco 38 20 Kuwait 249 Bahrain 77 13 13 10 10 10 UAE 585 8 3 Egypt 453 Oman 63 KFC Pizza Hut Hardee
Slide 23: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m Conversion % 66.3% 28.9% 96 (110) 195 34 56 451 298 447 351 (95) 1 (66) 2 (73) (106) (14) (260) (13) (40) (343) (14) (11) (153) (156) 9M 23 9M 23 9M 24 9M 24 9M 23 9M 24 Net Cash From Operating Activities Net Cash Fr
Slide 24: EBITDA & Adj. EBITDA reconciliation – Q3 23 and Q3 24
EBITDA & Adj. EBITDA reconciliation – Q3 23 and Q3 24 Post IFRS-16 basis $k Q3 23 Q3 24 Net profit for the period 83,513 36,555 Income tax and zakat 2,859 5,791 Finance cost (net) excluding finance costs on lease liabilities (3,838) (2,682) Depreciation and amortization (excluding depreciation relat
Slide 25: EBITDA & Adj. EBITDA reconciliation – 9M 23 and 9M 24
EBITDA & Adj. EBITDA reconciliation – 9M 23 and 9M 24 Post IFRS-16 basis $k 9M 23 9M 24 Net profit for the period 230,422 114,279 Income tax and zakat 12,644 14,186 Finance cost (net) excluding finance costs on lease liabilities (6,572) (9,818) Depreciation and amortization (excluding depreciation r
Slide 26: 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 (9M 23 to 9M 24) $m 12.0% 7.3% (465bps) Margin3 Margin3 Impact due to 3.2 3.8 lower revenue 230.4 Largely driven by NSOs 114.3 (95.9) (12.0) (7.9) (4.2) (1.6) (1.5) 9M 23 Net Net finance Other Adj. EBITDA
Slide 27: 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 28: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 27 Public
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