ZAMP (ZMMP.Y) Q4 2024 earnings summary

Executive summary

• Net operating revenue reached R$1.3 billion in 4Q24, up 21% year-over-year, and R$4.6 billion for 2024, up 19%, driven by organic growth and acquisitions of Starbucks® and Subway®.

• Restaurant base expanded to 2,708, including 114 Starbucks® and 1,531 Subway® units, with portfolio now covering four major QSR brands.

• Digital sales accounted for over 50% of total revenue in 4Q24, up 31% year-over-year, with loyalty program reaching up to 20 million users.

• Burger King® and Popeyes® delivered strong SSS growth, while Starbucks® and Subway® showed early signs of turnaround post-acquisition.

• Delivery sales grew 24% in the quarter, representing 60% of company revenue.

Financial highlights

• Adjusted EBITDA (ex-IFRS16 and one-offs) for 2024 grew 15% year-over-year; reported EBITDA was impacted by non-recurring items.

• Net loss of R$41 million in 4Q24, with annual net loss at R$191 million, both affected by asset write-offs and integration costs.

• Adjusted operating cash flow for 2024 was R$202–268 million, down 24–24.5% year-over-year due to working capital needs and acquisitions.

• Year-to-date CAPEX was R$341.4 million, down 9.2% from 2023, focused on openings, technology, and remodeling.

• Net debt at R$552 million, leverage at 1.6x net debt/EBITDA, with a stretched but manageable debt profile.

Outlook and guidance

• 2025 priorities include sales and gross margin improvement, integration of Starbucks® and Subway®, and continued digital and physical expansion.

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

• Focus on margin management amid high coffee and meat costs, and leveraging brand diversification for growth.