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; strong growth in Poland and Spain offset declines in France, Germany, and China.

• EBITDA for H1 was €193.9 million, up 12.7% year-over-year, with margin expansion to 15.8%; Q2 EBITDA reached €112.8 million, up 11.2%.

• Operating profit for H1 was €23.5 million after a €44 million goodwill impairment, mainly related to Sushi Shop; adjusted EBIT for H1 was €64.6 million (5.2% margin).

• Net result for Q2 was -€23.1 million and for H1 was -€25.2 million, mainly due to impairment charges and higher financing costs.

• 40 new restaurants opened and 140 renovated in H1 2024, with a net increase of 80 equity restaurants year-over-year.

Financial highlights

• Q2 2024 EBITDA margin reached 17.7%, the highest nominal figure in company history.

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

• Q2 net operating cash flow was €88.6 million; cash flow in Q2 was €47 million, up nearly 40% year-over-year.

• Gross financial debt reduced to €609 million, with leverage at 2.0x, at the low end of the target range.

• Liquidity at €136.4 million, with available credit lines of €255.4 million as of June 30, 2024.

Outlook and guidance

• No change to full-year guidance; strong performance in some markets offsets weakness in France, Germany, and China.

• Portfolio optimization and organic growth remain key priorities, with continued focus on digitalization, efficiency, and capital allocation.

• Resilient same-store sales index at 101 in H1 and Q2 2024, despite challenging consumer environment.

• Ongoing negotiations for early termination of the Pizza Hut France master franchise agreement and transfer of 123 sub-franchised stores.