Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — Q1 2024 Earnings Presentation
26 slides from Americana Restaurants International's earnings presentation, May 9, 2024
Slide 1: Q1 24 Results Earnings Presentation
EARNINGS PRESENTATION Q1 24 RESULTS GREAT PEOPLE, GREAT FOOD, GREAT COMPANY Ma y 2024 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: Q1 24 Performance dashboard
Q1 24 Performance dashboard Restaurant Portfolio Revenues $493.5m LfL 2,456 stores (vs. Q1 23) (vs. Q1 23) +288 gross new restaurants added (16.3%) decline +(19.6)%2 decline in LfL revenues (till 10 (LTM1) March 2024) 37 under construction (22.2%) for Q1 24 Adj. EBITDA $103.3m Net Profit $28.0m Cape
Slide 6: Financial Review
[S] = FINANCIAL: REVIEW
Slide 7: 228 net new stores added in last twelve months; upholding 2024 guidance
228 net new stores added in last twelve months1; upholding 2024 guidance with a cautious stance, influenced by the ongoing geopolitical situation Restaurant portfolio evolution (1 Apr 23 – 31 Mar 24) Restaurants pipeline for 2024E No. of restaurants 288 (60) 200-225 net (18) 2,456 2,200 NSOs 25 2,22
Slide 8: Revenue performance impacted by negative LFL sales growth and closures
Revenue performance impacted by negative LFL sales growth and closures due to regional geopolitical situation and FX impact, despite $45m growth from NSOs Revenue bridge (Q1 23 to Q1 24) Revenue mix $m $m % of stable pegged 83% 83% currency 589 (16.3%) 494 2 (<1%) 34 (6%) 3 (1%) (16.3%) 31 (6%) 553
Slide 9: Recovery strongest in Kuwait; muted by impact in UAE and KSA
Recovery strongest in Kuwait which transitioned from medium to low impact; muted by impact in the UAE and KSA Impact intensity Q1 24 revenue share % UAE KSA Kuwait Kazakhstan Iraq Low impact 80% - 85% Qatar Bahrain Morocco Lebanon Medium impact 5% - 10% Egypt Oman Jordan High impact 5% - 10% 8
Slide 10: Early signs of recovery… however slower than expected
Early signs of recovery… however slower than expected Average daily sales (ADS) per store trend Impact of Ramadan Eid shift from Jul Period impacted by crisis Days Shift to Jun +9 days -9 days 6000 5000 ADS / store 4000 2023-24 2022-23 3000 2000 1000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 11: Power brands performance remained under pressure
Power brands performance remained under pressure due to regional geopolitical situation; further impacted by onset of Ramadan Revenues by power brands $m Total (17.7%) (22.5%) (18.5%) (22.5%) (11.0%) (22.9%) (12.1%) (26.4%) (16.3%) (22.2%) (19.6%)1 589 494 362 298 99 80 67 60 25 22 Q1 23 Q1 24 Q1 23
Slide 12: Y-o-Y gross margins increased despite increased discounts
Despite increased discounts, Y-o-Y gross margins increased due to decline in commodity prices and procurement & revenue management initiatives Cost of inventory1 evolution (Q-o-Q) % Q1 23 vs Q1 22 Q2 23 vs Q2 22 Q3 23 vs Q3 22 Q4 23 vs Q4 22 Q1 24 vs Q1 23 Change2 % 2.2%3 (0.2%) (2.2%) (3.4%) (2.9%)
Slide 13: 4-wall EBITDA margins maintained; net margins impacted
4-wall EBITDA margins maintained; net margins impacted due to flowthrough of revenue decline and higher depreciation charges for NSOs 4 Wall EBITDA Total Adj. EBITDA Net Profit $m $m $m 168 (15.3%) 143 127 (18.6%) 103 58 (51.8%) 28.6% 28.9% 21.5% 20.9% 28 9.9% 5.7% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 2
Slide 14: Net income majorly impacted by decline in revenue and increased depreciation costs
Net income majorly impacted by decline in revenue and increased depreciation costs Net income1 bridge (Q1 23 to Q1 24) $m 9.9% 5.7% (418bps) Margin Margin 2.6 1.2 0.3 (23.6) 58.8 (5.1) (4.9) Impacted by (1.8) (1.0) decline in overall 26.7 revenues Largely driven by NSOs Impacted by UAE corporate tax
Slide 15: Committed to minimize the impact of the geopolitical situation
The company remains committed to minimize the impact of the geopolitical situation; through enhancing revenue opportunities and optimizing costs Revenue management Cost measures Event based pricing Further optimizing raw material sourcing across categories and supply chain Differential pricing Added
Slide 16: Net working capital decreased as a result of inventory management
Net working capital decreased as a result of inventory management and decrease in payables Net Working Capital Gross Capex $m $m (9.2%) (7.4%)1 5.3% 4.4% (222) (172) 49 37 109 110 156 137 (487) (419) 31 22 31 December 2023 31 March 2024 Q1 23 Q1 24 Payables Receivables Inventory Gross capex No. of n
Slide 17: The Way Forward
THE WAY FORWARD 16
Slide 18: 2024 key focus areas
2024 key focus areas 1 Revenue recovery with focus on establishing trust, driving transactions and serving great tasting food 2 Growth journey to continue with cautious outlook given evolving macro dynamics 3 Continued focus on operational efficiencies and excellence 4 Innovation, digitization and c
Slide 19: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 18
Slide 20: Appendix
APPENDIX 19
Slide 21: Portfolio evolution
Portfolio evolution No. of restaurants1 – by country and brands Openings & closures – Q1 24 No. of restaurants – by brand/ category Kazakhstan 116 Iraq 25 Lebanon 17 16 Qatar 108 Jordan 65 Morocco 34 Kuwait 251 8 Bahrain 78 7 UAE 5 4 4 574 3 2 3 Egypt 452 1 Oman 63 KSA 673 KFC Pizza Hut Hardee's Kri
Slide 22: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m 21 73 Conversion % 21.9% (50.0%) 17 (27) 83 127 91 103 41 (22) (31) (3) (4) (18) (23) (50) (50) (4) (50) (4) (52) (50) Q1 23 Q1 23 Q1 24 Q1 24 Q1 23 Q1 24 Net Cash From Operating Activities Net Cash From Investing ac
Slide 23: EBITDA & Adj. EBITDA reconciliation
EBITDA & Adj. EBITDA reconciliation Post IFRS-16 basis $k Q1 23 Q1 24 Net profit for the period 58,791 26,661 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 2,871 3,852 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabilities (1,525) (4,126)
Slide 24: Adj. EBITDA margin bridge
Adj. EBITDA margin bridge Adj. EBITDA margin bridge (Q1 23 to Q1 24) % of revenues $127m (61bps) $103m 1.8% (1.9%) 2.9% (1.2%) (1.2%) 21.5% (0.9%) (0.1%) 20.9% Q1 23 Cost of Inventory Royalty & Staff cost Other 4-wall HD Mix G&A and Others Rentals Q1 24 Adj. EBITDA marketing Cost Adj. EBITDA Margin
Slide 25: Key definitions
Key definitions • Adjusted EBITDA: • Net capex: Adjusted EBITDA post IFRS-16 is defined as Net profit for the year plus finance cost Defined as Gross capex less proceeds from sale of property and equipment. Gross (net), plus income tax and zakat and contribution to Kuwait Foundation for the capex de
Slide 26: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 25
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