AmRest (EAT) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues reached €1,231.5 million, up 5.3% year-over-year, with record Q2 sales of €638.9 million and EBITDA of €193.9 million, a 12.7% increase.

• EBITDA margin expanded to 15.8% in H1 and 17.7% in Q2, driven by efficiency gains and digital sales.

• Operating profit for H1 was €23.5 million after €44 million in goodwill impairments, mainly related to Sushi Shop.

• Net result for Q2 was -€23.1 million, impacted by impairment charges and higher financing costs.

• 40 new restaurants opened and 140 renovated in H1, with total managed units at 2,177.

Financial highlights

• Q2 2024 EBITDA reached €112.8 million, up 11.2% year-over-year, with margin at 17.7%.

• Q2 EBIT was €4.9 million after €44 million impairments; adjusted EBIT was €46 million (margin 7.2%).

• Q2 operating cash flow was €88.6 million.

• H1 2024 CAPEX was €76.2 million, up from €60.4 million in H1 2023.

• Leverage ratio at 2.0x, at the low end of the target range.

Outlook and guidance

• Full-year guidance unchanged, with portfolio optimization and organic growth as key priorities.

• Management expects continued margin recovery and stable profitability, focusing on efficiency and digitalization.

• Strategy adapts to price-sensitive, value-seeking customers amid subdued consumer spending.

• Ongoing negotiations for early termination of the Pizza Hut France master franchise agreement.