AmRest (EAT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached an all-time high of €659.5 million, up 4.2% year-over-year, driven by strong sales momentum, higher average ticket, and increased transactions, despite moderated household consumption in some markets.

• EBITDA rose 13% to €125.3 million, with margin expanding by 1.5 percentage points to 19%, the highest nominal figure in company history.

• EBIT increased 14% to €60.3 million, with margin up 0.7 percentage points to 9.1%.

• Net profit for Q3 was €28.2 million, with a margin of 4.3%.

• 21 new restaurants opened and 13 closed, ending the quarter with 2,185 units across 22 countries.

Financial highlights

• Revenue reached €659.5 million (+4.2% YoY), driven by higher average ticket and transaction growth.

• EBITDA margin expanded to 19%, including tax refunds; EBIT margin rose to 9.1%; net profit margin at 4.3%.

• Operating cash flow increased 31% year-over-year to €122.4 million.

• CapEx for Q3 was €44.3 million; year-to-date capex at €152.9 million.

• Net debt decreased to €465.2 million, leverage ratio at 1.8x, with liquidity at €157.8 million and €213.3 million in available credit lines.

Outlook and guidance

• Management expects strong seasonality in Q4, with sales leverage benefiting results.

• No change to previously communicated expectations for 2024; 2025 guidance to be provided with full-year results.

• Omnichannel and digital strategy enhancements, including digital menu boards and mobile app upgrades, continue to support growth.

• Portfolio optimization and organic growth remain strategic priorities, with ongoing focus on value and capital allocation.

• Management highlights ongoing macroeconomic uncertainty due to geopolitical tensions and restrictive financial conditions.