Amrest Holdings Se · GPW:EAT
Amrest — H1 2024 Earnings Presentation
34 slides from Amrest's earnings presentation, Sep 6, 2024
Slide 1: Investor Presentation H1/Q2 2024
Investor Presentation H1/Q2 2024 6th September 2024
Slide 2: Key milestones in AmRest history
2 Key milestones in AmRest history AmRest is a leading European listed restaurant operator, Master Franchiser and operator of some of the world’s most reputable and iconic global brands with presence across 22 countries China - 86 UAE – 12 Saudi Arabia - 4 Quick Fast casual service restaurants resta
Slide 3: H1’24 Summary
3 H1’24 Summary Revenues of EUR 1,231.5 million, with a growth of 5.3% Revenues compared to H1´23. EBITDA generation amounted EUR 193.9 million, up 12.7% Profitability year-on-year. Operating EBIT stood at EUR 23.5 million after booking EUR 44.0 million profit in impairments (EUR 41.1 goodwill relat
Slide 4: Business dynamics continue to demonstrate the value (quick service and coffee)
4 Business dynamics continue to demonstrate the value Quick service restaurants and coffee Starbucks KFC Delicious novelties and super Driving customer’s daily habit promos Burger King New BK APP is finally on!
Slide 5: Business dynamics continue to demonstrate the value (fast casual and casual dining)
5 Business dynamics continue to demonstrate the value Fast casual and casual dining Sushi Shop Pizza Hut Partnership with the hungriest cat Limited-edition box with exclusive recipes in the world! La Tagliatella Blue Frog Continues commitment with the celiac New Core Menu audience
Slide 6: Strong sales supported by steady growth in revenue per store
6 Strong sales supported by steady growth in revenue per store H1’24 revenues amounted to EUR 1,231.5 million, up 5.3% compared to H1’23. Steady growth in the core business and in the equity restaurants operated Total AmRest sales (EURm) 12 months trailing average sale per equity store* +5% Number o
Slide 7: Digital capabilities as driver of growth
7 Digital capabilities as driver of growth The Group's progress in digitisation continues to support activity levels, with sales through digital channels making up 57% Total AmRest & dine-in sales evolution (EURm) Digital sales* share evolution 639 57% 2019 2020 2021 2022 2023 2024 2019 2021 2022 20
Slide 8: EBITDA margin expansion
8 EBITDA margin expansion EBITDA amounted to EUR 193.9 million in H1´24, up 12.7% compared to H1’23. 1 p.p. EBITDA margin expansion driven by cost efficiency EBITDA [EURm] & EBITDA Margin* Cost of supplies 350 20% 300 18% 17% 18% 300 16% 15% 15% 16% 250 250 14% +13% 12% 200 200 194 10% 150 150 172 8
Slide 9: EBIT impacted by non-cash impairment recognition
9 EBIT impacted by non-cash impairment recognition Operating Profit (EBIT) at EUR 23.5 million after registered EUR 44.0m in impairments. Adjusted Operating Profit** at EUR 64.6 million that implies a 5.2% margin EBIT [EURm] & EBIT Margin* Adjusted** EBIT [EURm] 5% 4% 4% 4% 4% 4% 3% 2% 2% 2% +26% -5
Slide 10: H1´24 strategic portfolio changes
10 H1´24 strategic portfolio changes Organic growth and improve capital allocation focus with the transfer of underperformance businesses over the last years TOTAL NUMBER OF RESTAURANTS ORGANIC CHANGES 28 14 PH FR 124 stores 2 53 40 32 31 2,177 -17 -21 -16 -20 2,055 2,097 1,996 -8 -6 -9 -17 -2 H1'21
Slide 11: Financial Highlights
11 FINANCIAL HIGHLIGHTS
Slide 12: H1’24 highlights
12 H1’24 highlights Sales € 1,231.5m +5.3% 101 Growth Sales Sales growth SSS index € 1,169.9 in H1´23 vs. H1’23 vs. H1’23 EBITDA € 193.9m € 23.5m EBIT € 76.2m EBITDA EBIT CAPEX CAPEX +12.7% vs. H1’23 € 51.2m in H1’23 € 60.4m in H1’23 Portfolio 40 performance Gross openings (32 Eq, 8 Fr)* * Data supp
Slide 13: Q2’24 highlights and current trading
13 Q2’24 highlights and current trading Sales € 638.9m +5.3% 100 Growth Sales Sales growth SSS index € 606.7 in Q2´23 vs. Q2’23 vs. Q2’23 EBITDA € 112.8m € 4.9m EBIT € 47.1m EBITDA EBIT CAPEX CAPEX +11.2% vs. Q2’23 € 36.8m in Q2’23 € 34.0m in Q2’23 Current 101 SSS index trading vs. 2023 YTD as of 18
Slide 14: Q2’24 Revenues highlights
14 Q2’24 Revenues highlights AmRest strong sales momentum continues. Group's quarterly revenue hit a new all-time high at EUR 638.9 million Quarterly revenues evolution (EURm) Quarterly SSS vs LY 638.9 100% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 15: Q2’24 EBITDA highlights
15 Q2’24 EBITDA highlights The EBITDA margin stood at 17.7%, 1 p.p. higher versus Q2’23. The highest nominal figure in AmRest's history and up 11.2% year-on-year EBITDA [EURm] & EBITDA Margin EBIT [EURm] & EBIT Margin 17% 18% 18% 15% 14% 110.9 112.8 101.4 96.2 81.1 8% 6% 3% 52.9 0% 1% 36.8 18.6 -0.5
Slide 16: Q2’24 Adjusted EBIT
16 Q2’24 Adjusted EBIT Profit from operations impacted by non-cash goodwill impairment booking. Adjusted* EBIT increase by 25% vs Q2’23, with margin improvement of 1.1pp. Adjusted * EBIT [EURm] Net cash provided by operating activities 20% 140.0 15% 8% 108.2 6% 7% 10% 93.2 5% 86.9 88.6 90.0 3% 5% 70
Slide 17: Q2’24 Cash flow
17 Q2’24 Cash flow Quarterly Reporting period Q2'24 Q2'23 variation Restaurants 2,177 2,097 80 Equity restaurants 1,803 1,723 80 Franchise restaurants 374 374 - Revenue 638.9 606.7 5.3% EBITDA 112.8 101.4 11.2% margin 17.7% 16.7% 0.9pp EBIT 4.9 36.8 (86.8%) margin 0.8% 6.1% (5.3pp) Adjusted* EBIT 46
Slide 18: Portfolio optimization strategy on track
18 Portfolio optimization strategy on track Q2’24 & H1’24 registered the highest number of openings since 2022 Portfolio optimization* 8 , 22 -14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 Openings Closures Net openings (ex. M&A) * Data since 2021 supplemented by the relocation closures and openin
Slide 19: Q2’24 debt and cash evolution
19 Q2’24 debt and cash evolution Prudent balance sheet ➢ Leverage ratio* stable at 2.0x ➢ Liquidity adjusted at efficient and prudent level for Group´s needs Net financial debt evolution & cash position 700.0 20.0 616.4 600.0 15.0 467.6 476.5 500.0 10.0 425.4 397.4 400.0 5.0 2.9x 300.0 2.3x 2.0x 1.8
Slide 20: Q2’24 financial debt profile
20 Q2’24 financial debt profile Financial debt structure and maturity profile EUR 12.1 million of debt repayments during the quarter Financial debt* structure Financial debt* maturity profile 63% 8% 4% 5% 26% 74% 92% 91% 13% 12% 6% 6% Bond Debt Short-Term Debt PLN EUR Bank Debt 2024 2025 2026 2027 2
Slide 21: AmRest, a diversified multinational company
21 AmRest, a diversified multinational company Business is distributed between three different segments for analysis purposes. Breakdown of Sales, EBITDA and unit count by segment: Sales by Segment EBITDA by Segment Number of units by Segment 3% 3% 4% 4% 5% 4% 35% 58% 32% 63% 41% 55% 56% Q2 2024 37%
Slide 22: Segment breakdown | CEE
22 Segment breakdown | CEE Revenues at EUR 368.8 million, with a YoY growth of 10.3%. EBITDA growing at 7.3% year on year and margin recovering the 20% treshold Segment sales [EURm] EBITDA [EURm] & EBITDA Margin Store count +10% 368.8 20% 22% 21% 18% 20% 354.1 349.5 334.4 335.3 78.9 71.9 73.8 68.5 5
Slide 23: Segment breakdown | WE
23 Segment breakdown | WE Revenues reached EUR 223.8 million. EBITDA year-on-year growth at 16.3% and margin at 16% Segment sales [EURm] EBITDA [EURm] & EBITDA Margin Store count -0.5% 14% 15% 16% 12% 13% 230.9 234.5 224.9 223.8 36.7 218.7 34.2 31.6 29.3 27.7 533 538 552 550 555 348 349 346 346 347
Slide 24: Segment breakdown | China
24 Segment breakdown | China Sales at EUR 25.1 million affected by macro slowdown and currency depreciation EBITDA margin expansion in place Segment sales [EURm] EBITDA [EURm] & EBITDA Margin Store count -6% 26.7 25.6 25.1 24% 22.7 21% 22% 21.6 16% 19% 76 77 78 78 75 5.5 5.6 6.0 3.7 4.1 11 12 10 10
Slide 25: Appendix
APPENDIX s 7 AmRest
Slide 26: Restaurant portfolio
26 Restaurant portfolio Period 2011-2015 Period 2016-YTD • New brands La Tagliatella, Blue Frog • New brands Bacoa, Sushi Shop, Virtual Brands Spain, France, Andorra, • New markets Croatia, Germany, China, Slovakia, Portugal, Slovenia, Romania, • New markets Austria, Belgium, Switzerland, Luxembourg
Slide 27: AmRest footprint
27 AmRest footprint 8 2,177 22 Proprietary Franchise Brands Restaurants Countries Brands Brands Europe + ME Store count by country # Equity | # Franchise Country Total 5 646 160 Poland 369 - 140 15 46 - 76 - - - - - - - - - 631 15 9 3 232 23 2 333 11 159 Czechia 127 - 16 - 33 - 56 - - - - - - - - -
Slide 28: Financial statement: Balance Sheet
28 Financial statement Balance Sheet Note 30 June 2024 31 Decem ber 2023 Note 30 June 2024 31 Decem ber 2023 Assets Equity Property, plant and equipment 8 601.1 580.4 Share capital 15 22.0 22.0 Right-of-use assets 9 868.8 825.6 Reserves 15 171.1 174.1 Goodw ill 11 212.3 253.3 Retained earnings 15 16
Slide 29: Financial statement: Segment breakdown Q2’24
29 Financial statement Segment breakdown Q2’24 3 MONTHS ENDED 3 MONTHS ENDED 30 June 2024 30 June 2023 30 June 2024 30 June 2023 Amount % of sales Amount % of sales Amount % of sales Amount % of sales Revenue 638.9 100.0% 606.7 100.0% Adjusted EBITDA 114.0 17.8% 102.6 16.9% Poland 190.9 29.9% 165.2
Slide 30: Financial statement: EBITDA bridge
30 Financial statement EBITDA bridge 3 MONTHS ENDED 30 June 2024 30 June 2023 Amount % of sales Amount % of sales Profit/(loss) for the period (23.1) (3.6%) 18.8 3.1% + Finance costs 20.7 3.2% 17.1 2.8% – Finance income (0.6) (0.1%) (4.9) (0.8%) +/– Income tax expense 7.9 1.2% 5.8 0.9% + Depreciatio
Slide 31: Financial statement: P&L
31 Financial statement P&L 6 MONTHS ENDED Note 30 June 2024 30 June 2023 Continuing operations Restaurant sales 1 155.1 1 089.9 Franchise and other sales 76.4 80.0 Total revenue 4.0 1 231.5 1 169.9 Restaurant expenses: 6 MONTHS ENDED Food and merchandise 5.0 (317.8) (317.4) Note 30 June 2024 30 June
Slide 32: Factsheet
32 Factsheet Shareholder structure** Listing details Warsaw (since 2005) Listing venues: Madrid (since 2018) ISIN: ES010537500 Shares issued: 219.6m Other Shareholders, PTE Allianz Polska SA, 18.54% 4.34% Artal International S.C.A., 5.18% FCapital Dutch S.L.*, 67.05% Nationale-Nederlanden PTE SA, 4.
Slide 33: Glossary
33 Glossary ▪ EBITDA – It is a close measure of profitability on operations and consist of profit from operations excluding amortization and depreciation costs as well as impairments. ▪ EBITDA margin –EBITDA divided by total revenue ▪ Adjusted EBITDA - EBITDA adjusted for new openings expenses (Star
Slide 34: Disclaimer
34 DISCLAIMER This Presentation regarding AMREST HOLDINGS, SE (“AmRest” or the “Company”) has been prepared for information purposes only and it is not regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentat