AmRest : achieves record second-quarter sales of EUR 606.7 million in Q2’23 and a net profit of EUR 23.8 million

31-08-2023

AmRest achieves record second-quarter sales of EUR 606.7 million in Q2'23 and a net profit of EUR 23.8 million

• An all-time high consolidated revenues for a second quarter, reaching EUR 606.7 million in Q2'23, 16.6% growth year-on-year, and revenues of EUR 1,169.9 million for H1'23, 18.9% higher than in the same period of 2022*
  
• The Group's EBITDA reached EUR 101.4 million in Q2'23, with a 16.7% margin, while H1'23 EBITDA amounted to EUR 172.0 million, up 15.4% compared to the same period in 2022*
  
• In Q2'23 AmRest completely ceased its corporate presence in Russia

AmRest Group, a leading European multi-brand restaurant operator, continued a growth trend by posting a new sales record for the second quarter with revenues of EUR 606.7 million in Q2'23, an increase of 16.6% YOY. The Group's consolidated revenues for the first half of 2023 amounted to EUR 1,169.9 million, 18.9% higher than in the same period of 2022.

During this period, AmRest has achieved a good commercial performance that, together with the gradual recovery of margins, has allowed the net income generated in the second quarter of 2023 to amount to EUR 23.8 million, with a contribution of EUR 5.0 million generated by discontinued operations, after the deconsolidation of the business in Russia. In the second quarter of 2023, the Group disposed of all its operations in Russia, completely ceasing its corporate presence in that market.

This quarter, AmRest's profitability increased thanks to cost control, efficiency gains, and the generation of more value-added transactions. The successful implementation of these initiatives is enabling the Group to limit the impact of costs on customers and to continue to maintain an attractive price-value proposition compatible with the recovery of margins. Additionally, during the second quarter of 2023, a slight reduction in the enormous cost pressure suffered during the last quarters has started to be seen. This allowed the EBITDA for Q2'23 to increase to EUR 101.4 million, representing a growth of 25.3%* and a margin of 16.7%. This brings the EBITDA generated during the first half of the year to EUR 172.0 million, up 15.4% compared to the same period in 2022.

AmRest's equity closed the first half of the year at EUR 383.2 million after increasing by EUR 52.0 million in the first six months, which represents a 15.7% growth. In addition, the level of net financial debt stands at EUR 380.9 million, having been reduced by EUR 44.5 million during the year. This situation allows to comfortably comply with the financial covenants.

Finally, during this period, the Company opened 29 units, and it is expected that the second half of the year will concentrate most of the planned openings and the necessary investment.

All major regions where AmRest operates continued with an upward trend. Central and Eastern Europe stood out for the best performance, with revenues amounting to EUR 334.4 million in Q2'23, representing a YOY growth of 19.7%. The EBITDA generated was EUR 68.5 million, EUR 13.7 million higher than in the same period of 2022, with an EBITDA margin of 20.5%. As for Western Europe, the revenues in Q2'23 amounted to EUR 224.9 million, 9.8% higher than in Q2'22.The EBITDA generated amounted to EUR 31.6 million, with a YOY growth of 14.9%.

The reopening of the economy and increased mobility in China have allowed AmRest to regain the growth path of its operations in the country. As a result, revenues generated in the second quarter amounted to EUR 26.7 million, a YOY increase of 88.0%. In terms of EBITDA, EUR 5.5 million was generated during the second quarter, representing an EBITDA margin of 20.6%.

According to Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE, "Since the opening of our first restaurant 30 years ago, in 1993, we have successfully navigated through the challenges and embraced the opportunities in the restaurant industry. The figures achieved in the first half of our anniversary year, further prove that our business is based on solid grounds. We work with the conviction that efficiency is a key competitive advantage. For this reason, AmRest periodically conducts an exhaustive study of possible added-value initiatives and channels best working practices between different markets and brands. This allows us to offer our customers a compelling price-value proposition together with a unique and enjoyable experience and stay on track for profitable and sustainable growth."

* As a result of Russia business disposal, for comparative purposes, the Group's figures have been re-presented to reflect only continued operations.