Ibersol SGPS (IBS) Q2 2024 earnings summary

Executive summary

• Turnover from continued operations rose 8.7% year-over-year to €209.4 million in 1H 2024, driven by new restaurant openings and strong airport concession performance.

• EBITDA from continued operations increased 30.7% to €39.5 million, with margin up to 18.9%, but net profit from continued operations fell by €1.4 million to €1.8 million due to higher amortization and financial costs.

• Consolidated net profit reached €4.8 million, including €3.0 million from discontinued operations (mainly capital gain on Burger King unit sales).

Financial highlights

• Gross margin improved by 0.5 p.p. to 76.2% of turnover; personnel costs increased to 32% of turnover due to wage pressures and provisional airport formats.

• Operating income declined 22.1% to €6.2 million, mainly due to higher amortization and start-up costs in new concessions.

• Financial expenses rose 19.3% to €7.7 million, mainly from increased lease interest; financial income grew 28.8% to €3.2 million.

• Net debt (including leases) increased by €37 million to €104.3 million; gearing rose to 24%.

• Equity decreased by €18.7 million to €336.2 million, reflecting €20.8 million in dividends paid.

Outlook and guidance

• GDP growth in Portugal and Spain forecast at 2% and 2.8% for 2024, with inflation slowing and moderate rate cuts expected.

• Airport concession conversions in Spain to continue through 2024, pressuring profitability until completion.

• Expansion to focus on Pizza Hut, KFC, Taco Bell, and Pret A Manger, with first Pret A Manger in Portugal opening in Q4.