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 CEE performance and higher average ticket, despite moderation in household consumption in several 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; exited Pizza Hut France as of November 2024.

Financial highlights

• Revenue reached €659.5 million (+4.2% YoY); EBITDA: €125.3 million (+13% YoY); EBIT: €60.3 million (+14% YoY).

• EBITDA margin expanded to 19% (+1.5pp YoY), aided by tax refunds; EBIT margin at 9.1% (+0.7pp YoY); net profit margin at 4.3%.

• Operating cash flow in Q3 was €122.4 million, up over 30% year-over-year.

• CapEx for Q3 was €44.3 million, in line with prior year.

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

Outlook and guidance

• Management expects strong seasonality to benefit Q4 sales and margin leverage; cost pressures from labor and food are stabilizing.

• 2025 guidance and KPIs to be provided with full-year results; M&A opportunities are being monitored.

• 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.

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