ZAMP (ZMMP.Y) Q2 2024 earnings summary

Executive summary

• Net operating revenue reached R$1.1 billion in 2Q24, up 19% year-over-year, marking a historical quarterly record driven by strong same-store sales, digital channel expansion, and operational improvements.

• Adjusted EBITDA ex-IFRS 16 rose 43% YoY to R$90.5 million, with margin improvement of 140bps, reflecting effective cost management and sales leverage.

• Same-store sales grew 16.2% for Burger King and 7.2% for Popeyes, with consolidated growth mainly from increased traffic and digital initiatives.

• Net loss narrowed by 57% year-over-year to R$27.5–28 million.

• Management highlighted strong commercial strategies, digitalization, and leadership changes, including a new CEO and Marketing VP.

Financial highlights

• Net operating revenue: R$1,108.2 million (+18.6% YoY); Burger King revenue: R$1,025.2 million (+18.7% YoY); Popeyes revenue: R$67.4 million (+13% YoY).

• Adjusted EBITDA: R$149 million (+21.1% YoY); Adjusted EBITDA ex-IFRS 16: R$90.5 million (+42.8% YoY).

• Gross margin consolidated at 65%, up 12bps YoY; Burger King gross margin: 64.7%; Popeyes: 62.2%.

• Digital sales grew 30% YoY, now representing 51% of total sales (R$559 million).

• Operating cash flow increased to R$81.7–82 million, up from R$54.7–55 million in 2Q23.

Outlook and guidance

• Focus remains on sales and traffic growth through commercial strategies, innovation, digital engagement, and modernization of restaurants.

• Efficiency and operational leverage are ongoing priorities, with further organic and inorganic growth opportunities being explored.

• Free-standing restaurant format identified as a key growth and capital allocation vector.

• 2024 is considered a transition year, with 35–45 Burger King openings planned and ambitions to expand further in coming years.