Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — H1 2023 Earnings Presentation
24 slides from Americana Restaurants International's earnings presentation, Aug 3, 2023
Slide 1: H1 23 Results
EARNINGS PRESENTATION H1 23 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY Au g u s t 2 0 2 3 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: H1 23 Performance dashboard
H1 23 Performance dashboard Restaurant Portfolio Revenues $1,241.5m LfL Adj. EBITDA $291.7m 2,277 stores (vs. H1 22) (vs. H1 22) (vs. H1 22) 262 gross new restaurants 7.8% growth 7.2% growth 7.7% growth added (LTM1) $90m increase 23.5% margin 84 under construction Net Profit $144.8m Capex $69.0m Avg
Slide 6: H1 23 Key updates
H1 23 Key updates Pizza Hut expansion in KSA Peet’s Coffee expansion Continued expansion of Krispy • Successfully launched Pizza Hut • Launch of Peet's Coffee in the Kreme in Mecca in June 2023 Kingdom, 2 stores opened in July • Launch of first Krispy Kreme in 2023 Alexandria, Egypt through a • Open
Slide 7: New restaurants openings
New restaurants openings Dubai, UAE Alexandria, Egypt 29-Jul-2023 149 sqm 29-Jun-23 222 sqm Riyadh, KSA Taif, KSA 29-Jul-2023 160 sqm 21-Apr-23 80 sqm Source: Company information 6
Slide 8: Financial Review
[Ss] = FINANCIAL: REVIEW
Slide 9: Restaurant rollout on track, gross new store additions in H1 23
Restaurant rollout on track, 108 gross new store additions in H1 23 Restaurant portfolio evolution (H2 22 to H1 23) NSO pipeline for 2023E No. of restaurants 40 133 94 250-260 net 262 28 (35) 2,277 NSOs p.a. (3) (10) 2,200 2,050 (22) 234 186 15 56 31 154 108 84 66 30 June 2022 Gross Openings Closure
Slide 10: High single digit growth on new store openings and healthy LfL revenues
High single digit growth registered on the back of new store openings and healthy LfL revenues, despite FX impact from Egypt and Lebanon Revenue bridge (H1 22 to H1 23) Revenue mix $m $m % of stable 81% 83% 7.8% pegged currency 1,152 7.8% 1,241 4 (<1%) 12 (1%) 72 (6%) 70 (6%) 1,070 1,165 (93%) (94%)
Slide 11: Positive momentum in LfL revenue growth; driven by KFC and Pizza Hut
Positive momentum in LfL revenue growth; driven by KFC and Pizza Hut performance Revenues by Power Brands $m Total 10.2% 10.2% 1.7% 0.7% 11.8% 7.1% 13.4% (8.2%) 7.8% 7.2% 1,241 207 1,152 768 141 204 697 126 49 43 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 23 growth H1 23 LfL grow
Slide 12: Improvement in cost of inventory due to depleting buildup inventory levels
Improvement in cost of inventory due to depleting buildup inventory levels, supported with cool off in prices of key commodities Cost of inventory1 evolution (Q-o-Q) % Q1 23 vs Q1 22 Q2 23 vs Q2 22 H2 23E vs H2 22 Further Change2 % 2.2%3 (0.2%) improvement expected in H2 23E 33.1% 32.6% 32.5% 31.8%
Slide 13: Double digit Y-o-Y net profit growth driven by EBITDA performance
Double digit Y-o-Y net profit growth driven by EBITDA performance and one-off tax claim charge in Egypt in H122 4 Wall EBITDA Total Adj. EBITDA Net Profit $m $m $m 9.8% 373 339 7.7% 292 271 19.4% 145 121 29.5% 30.0% 23.5% 23.5% 10.5% 11.7% H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 Margin (% of revenues) Y
Slide 14: Stable portfolio paybacks, Krispy Kreme increase due to commissary capacity
Stable portfolio paybacks, Krispy Kreme increase is due to additional capacity built in commissary to support future store roll out Key metrics by restaurants1 New restaurant openings1,2 by brands New Restaurants Avg. Capex / new Brand Payback (years) openings restaurant ($k) 126 469 1.6 13% 30% 39
Slide 15: Negative NWC maintained, inventory levels continue to decline
Negative NWC maintained, inventory levels continue to decline as inflationary priced inventory is depleted Net Working Capital Gross Capex $m $m (7.9%) (8.0%)1 5.2% 5.6% (188) (196) 104 66 108 131 174 138 (465) (466) 69 60 31 December 2022 30 June 2023 H1 22 H1 23 Payables Receivables Inventory Gros
Slide 16: The Way Forward
THE WAY FORWARD 15
Slide 17: 2023 Outlook
2023 Outlook Expect to open 250-260 net Egypt – Proactively Expected improvement in Expected improvement in new restaurants in 2023, navigating through GP margin in H2 23, Net Profit margin in H2 23, as focusing on growth headwinds with sharp focus expecting full year 2023 a result of flow-through f
Slide 18: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 17
Slide 19: Appendix
APPENDIX 18
Slide 20: Portfolio evolution – H1 23
Portfolio evolution – H1 23 No. of restaurants – by country and brands Openings & closures – H1 23 No. of restaurants – by brand/ category Kazakhstan 103 Iraq 19 35 Lebanon 18 32 Qatar 102 Jordan 63 Morocco 27 Kuwait 235 17 Bahrain 76 13 11 UAE 544 3 3 5 1 2 Egypt 448 Oman 62 KFC Pizza Hut Hardee's
Slide 21: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m Conversion % 74.9% 58.4% 63 12 111 140 9 18 314 241 265 271 292 (44) 1 (197) (59) (69) (209) (6) (10) (9) (84) (102) H1 22 H1 22 H1 23 H1 23 H1 22 H1 23 Net Cash From Operating Activities Net Cash From Investing acti
Slide 22: EBITDA & Adj. EBITDA reconciliation
EBITDA & Adj. EBITDA reconciliation Post IFRS-16 basis $k H1 22 H1 23 Net profit for the year 123,211 146,909 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 6,119 9,785 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabilities 21 (2,734) Depre
Slide 23: 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 24: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 23
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