ZAMP (ZMMP.Y) Q3 2024 earnings summary

Executive summary

• Net operating revenue reached BRL 1.12 billion in Q3 2024, up 18% year-over-year, marking a new quarterly record driven by strong same-store sales and digital channel growth.

• Integrated Starbucks and Subway into the portfolio, expanding system-wide sales potential and market reach by 2.6x.

• Over 3,000 units and 30,000 employees, now the largest restaurant operator group in Brazil.

• Adjusted EBITDA reached BRL 135.5 million (+6% YoY), margin at 12.1%; adjusted EBITDA ex-IFRS 16 was BRL 77 million (+12% YoY), margin 6.8%.

• Net loss narrowed to BRL 32.5 million, a 16% improvement over Q3 2023.

Financial highlights

• Same-store sales grew 16.2% for Burger King and 12.3% for Popeyes in Q3 2024.

• Digital sales accounted for 52% of total revenue, up 38% year-over-year and 7 percentage points YoY.

• Gross profit rose 17.9% YoY to BRL 733 million; gross margin remained stable.

• Operational cash flow was BRL 85 million, down from BRL 94 million in Q3 2023, due to higher working capital needs.

• CapEx for the quarter was BRL 97 million, reflecting investments in new stores and remodeling.

Outlook and guidance

• Focus on organic growth, especially through freestanding store models and digital channels.

• Integration of new brands is a priority, with synergies and operational consistency targeted for 2025.

• No major M&A planned in the next 12 months; emphasis on optimizing current portfolio.

• Strategic reorganization into business units to drive efficiency and flexibility.

• Capital increase of BRL 450 million completed to support aggressive organic and inorganic growth.