AmRest (EAT) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached a record €2,431.6m, up 14.3% YoY on a re-presented basis excluding Russia; EBITDA rose 16.3% to €379.2m.

• FY23 profit was €50.9m versus €6.6m in FY22; Q4 revenue reached a record €628.9m, up 9.2% YoY.

• FY23 commitments included €214.9m CAPEX, 114 gross openings and 1.8x leverage; the Russian business was sold in May 2023.

Financial highlights

• FY23 EBITDA was €379.2m, up 16.3% YoY, with a 15.6% margin versus 15.3% in FY22.

• FY23 EBIT was €103.5m, up 0.5% YoY, with a 4.3% margin; impairments totaled €41.2m.

• Q4 revenue was €628.9m, up 9.2% YoY; EBITDA was €96.2m, up 17.7%, with a 15.3% margin.

• Q4 EBIT was -€0.5m versus €22.6m in Q4'22; net loss was €4.8m versus €3.6m profit in Q4'22.

• FY23 profit comprised €44.4m from continuing operations and €6.5m from discontinued operations.

Outlook and guidance

• FY24 revenue growth guidance is high single digit, excluding M&A; EBITDA is expected to grow at a double-digit rate.

• FY24 CAPEX is guided above €200m, with new openings at a similar number to 2023 and leverage at the low end of the target range.