ZAMP (ZMMP.Y) Q4 2024 earnings summary

Executive summary

• Net operating revenue reached R$4.6 billion in 2024, up 19% year-over-year, driven by organic growth and the acquisitions of Starbucks® and Subway® in Brazil, with Q4 revenue at R$1.3 billion, up 21%.

• Restaurant base expanded to 2,708 units, including 114 Starbucks® and 1,531 Subway® stores added in October, and new Burger King® and Popeyes® openings.

• Digital sales accounted for 50% of total revenue, up 31% year-over-year, with loyalty program users reaching 20 million, up 16%.

• Major strategic moves included the acquisition of Café Pacífico (Starbucks®), exclusive Subway® franchise rights, and a R$450 million capital increase.

• Net loss widened to R$191.3 million in 2024, impacted by higher operating and financial expenses and integration costs.

Financial highlights

• Adjusted EBITDA (ex-IFRS 16 and one-off effects) grew 15% year-over-year; reported EBITDA and margin declined due to non-recurring items and integration costs.

• Net operating revenue was R$4.6 billion (+19% YoY); gross profit reached R$2.96 billion with a 65% margin.

• Operating cash flow decreased 24% year-over-year, mainly due to working capital needs from acquisitions and inventory growth.

• CapEx for 2024 was R$341.4 million, down 9% year-over-year, focused on new openings, technology, and remodeling.

• Net debt was R$552 million (down 19% YoY), leverage at 1.6x net debt/EBITDA, with all debt covenants met.

Outlook and guidance

• 2025 priorities include gross margin management amid high coffee and meat costs, integration of Starbucks® and Subway®, and digital/physical experience improvements.

• Plans to expand Starbucks® footprint up to 5x current store count and support Subway® franchisees with innovation and digitalization.

• Continued expansion in underpenetrated regions and new formats, leveraging brand diversification.

• Management expects continued compliance with debt covenants and is assessing impacts of IFRS 18 and tax reforms.