Release Date: September 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amrest Holdings SE (XMAD:EAT, Financial) reported a revenue growth of 5.3% in the first half of 2024, reaching EUR1.2 billion.
- EBITDA increased by nearly 13% compared to the same period in 2023, with a margin expansion to 15.7%.
- The company opened 40 new restaurants and renovated 140 units in the first half of the year.
- Digital sales channels accounted for 57% of total sales, indicating strong digital engagement.
- Amrest's financial risk profile remains stable with a leverage of 2 times, at the low end of their target range.
Negative Points
- The company faced negative business development in France and Germany, impacting overall performance.
- A goodwill impairment of EUR41 million was recorded for Sushi Shop, affecting operating profit.
- The same-store sales growth was flat, indicating challenges in increasing customer traffic.
- The macroeconomic situation in China led to a 6% decline in sales in euro terms.
- The company is still undergoing restructuring, particularly with the transfer of Pizza Hut operations in France.
Q & A Highlights
Q: Can you provide more details on the transfer of the 124 franchise Pizza Hut restaurants in France?
A: We are in discussions with Pizza Hut to transfer the market to them, which should occur in the coming weeks. This aligns with our strategy to allocate resources to more profitable investments and regions. The transfer will have some financial impacts, but nothing significant for the company.
Q: Regarding the Sushi Shop, is there any goodwill left, and what should we expect going forward?
A: Yes, there is still some goodwill, approximately EUR71 million. We are focusing on profitability and have established a task force to drive improvements in the brand's performance. The economic factors in France and Germany are challenging, but we are working on initiatives to enhance profitability.
Q: What is the timeline for restructuring, particularly with the Pizza Hut business in France?
A: The transfer of the Pizza Hut business in France should be completed by the end of this year. Beyond this, there are no large restructuring projects planned. We are focusing on businesses that generate higher contributions for the company.
Q: With the restructuring nearing completion, is there a plan to introduce dividends?
A: We are focused on profitability and stabilizing profits amidst economic challenges. While we are on a good path, it is still early to discuss dividends. We are working towards becoming a value company without compromising growth.
Q: Can you provide an update on the current trends in like-for-like sales for the third quarter?
A: The first quarter had a 2% like-for-like growth, while the second quarter was flat due to the Easter effect. We expect a gradual recovery as the year progresses, with significant variations across different countries. Our diversified presence in 22 countries allows us to maintain a 5% growth overall.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
