Q2 2024 TH International Ltd Earnings Call Transcript
Key Points
- TH International Ltd (THCH) achieved adjusted corporate EBITDA profitability for the first time in its history.
- The company reported its highest-ever adjusted store EBITDA margin of 10.3%.
- Registered Loyalty club members reached 21.4 million, reflecting a 45.4% year-over-year growth.
- Digital orders as a percentage of total orders rose from 80.6% in Q2 2023 to 86.5% in Q2 2024.
- The company secured up to USD 50 million in financing from founding shareholders, Cartesian Capital Group and RBI.
- Revenue from company-owned stores decreased by 6.6% due to the strategic decision to prune underperforming stores.
- The Chinese coffee market continues to face significant challenges, including intense competition and macroeconomic pressures.
- Despite improvements, the company still faces high operational costs, including rental expenses and labor costs.
- The ongoing price war in the Chinese coffee market poses a challenge to maintaining profitability.
- The company needs to invest further in store renovations and marketing to sustain growth, which could strain financial resources.
Ladies and gentlemen, welcome to the Tims China's second quarter 2024 earnings conference call. (Operator Instructions) Today's conference is being recorded. At this time, I would like to turn the call over to Gemma Bakx, who heads Tims China's Investor Relations efforts, for prepared remarks and instructions. Please go ahead, Gemma.
Thank you very much, Nadia. Good morning and good evening, everyone, and thank you for joining us on today's call. My name is Gemma Bakx, Head of Investor Relations at Tims China. And we're announcing second quarter results earlier -- we announced it earlier today. The press release as well as an accompanying presentation, which contains operational and financial highlights are now available on the company's IR website at ir.timschina.com.
Today you will hear from Yongchen Lu, our Chief Executive Officer and Director and Albert Li, our CFO. After the company's prepared remarks, the management team will conduct a question and answer session. You can find the webcast
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