ZAMP (ZMMP.Y) Q3 2024 earnings summary

Executive summary

• Net operating revenue reached R$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.

• Same-store sales grew 16.2% for Burger King and 12.3% for Popeyes, both significantly outpacing inflation.

• Adjusted EBITDA reached R$135.5 million (+6% YoY), with margin at 12.1%; adjusted EBITDA ex-IFRS 16 was R$76.8 million (+12% YoY).

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

• Digital sales accounted for 52% of total revenue, up 7 percentage points YoY, driven by self-service totems and delivery channels.

Financial highlights

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

• COGS was 34.7% of revenue, slightly up due to commercial investments.

• Selling expenses (ex-D&A and pre-op) were 48.5% of revenue (+32 bps YoY); G&A expenses rose to 6.1% of revenue, mainly due to one-off M&A costs.

• Net debt decreased 28% YoY to R$546 million; leverage ratio improved to 1.4x from 2.3x.

• Operating cash flow was R$84.5 million, down 9.8% YoY due to higher working capital needs.

Outlook and guidance

• Capital increase of R$450 million completed to support aggressive organic and inorganic growth, including new brands.

• Focus on organic growth, especially through freestanding store models, digital channels, and operational consistency for Popeyes.

• Integration of Starbucks and Subway 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.