ZAMP (ZMMP.Y) Q1 2025 earnings summary

Executive summary

• Net operating revenue grew 13% year-over-year to R$1.2 billion in Q1 2025, driven by organic growth, acquisitions, and digital sales expansion.

• System-wide sales reached R$2.3 billion, up 58% year-over-year, with Subway and Starbucks as major contributors.

• Digital sales accounted for 54–56% of total revenue, growing 23% year-over-year, and loyalty program users reached 20 million.

• Same-store sales growth was strong: Burger King +4.6%, Popeyes +8.6%, Starbucks +16.1%, Subway +20.4%.

• Company operates over 2,680 restaurant units across four brands in Brazil.

Financial highlights

• Adjusted EBITDA was R$127 million, down 2.7% year-over-year, with margin declining due to higher COGS and integration costs.

• Net loss improved to -R$43.5 million from -R$90.8 million in 1Q24, nearly neutral when excluding one-off effects.

• Adjusted operating cash flow was negative, impacted by working capital changes, inventory adjustments, and tax credits.

• CAPEX fell 35.7% year-over-year to R$54.6 million, focused on new stores, technology, and asset renewal.

• Net debt was R$743 million, leverage at 2.2x net debt/EBITDA, and cash position at R$375.5–376 million.

Outlook and guidance

• Priorities for 2025 include improving sales and gross margin, enhancing restaurant experience, and integrating Starbucks and Subway.

• Management expects continued growth in digital channels and delivery, with further recovery for Starbucks and Subway.

• Cost pressures from protein inflation remain a concern, but operational levers are expected to mitigate impact.