AmRest Holdings SE (“AmRest”, the “Group”) hereby provides a business update on the second quarter preliminary sales, comparable sales trends and the status of store re-openings.
During the second quarter of 2020, a period significantly impacted by the restrictions implemented to contain the spread of COVID-19, the ability to effectively operate restaurants was limited in most of our markets. As a result, the group’s preliminary sales in the respective period amounted to EUR 272m, implying a 43.6% decrease compared to the same period of last year. The decline compares to a 7.4% drop in sales in Q1 2020, a period less severely impacted due to the implementation of restrictions only during the second part of March and following a strong start of our business into the year until then.
With the gradual easing of restrictions and re-opening of stores towards the second part of Q2 2020, overall sales and same store sales trends tangibly improved on a month by month basis.
At the end of April about 56% of AmRest restaurants were open and operating mainly with delivery, drive-thru and take-away, which resulted in 66.9% drop in sales compared to the same period of last year.
In May both numbers improved, with 81% of opened restaurants at the end of the month and 40.7% decline in sales.
At the end of June about 92% of restaurants were operating and the sales trend improved further with a decline of 24.4% year-on-year.
For comparison, in March sales decreased by 45.0% with 44% of restaurants operating at the end of the month but most of the closures started in the second half.
As of August, 11, around 96% of the restaurants were operating.
On a same-store-sales basis excluding F/X and adjusting for temporarily closed stores, the index reached 91.1% in Q1 2020 and 67.8% in Q2 2020. The results were improving on a month by month basis along with the easing of dine-in limitation and social restrictions as the index went from the bottom of 48.8% in April to 68.7% in May and 78.8% in June year-on-year. In March it reached 64.0%.
Preliminary sales of the CEE division amounted to EUR 133.6m in Q2 2020 and were 34.3% lower compared to Q2 2019. The Russian segment generated revenues of EUR 22.3m in Q2 2020, 57.1% lower compared to the corresponding period in 2019. Sales in the Western Europe division in Q2 2020 amounted EUR 92.4m, which was lower by 52.8% compared to Q2 2019. In China, sales amounted EUR 19.2m in Q2 2020, a decrease of 21.0% over the year. Revenues reported under segment “Other” reached EUR 4.6m and were 38.9% lower than year ago.
Reacting to the challenges presented, we have grown our delivery and drive thru capabilities to mitigate some of the losses we have faced in dine-in traffic. Sales through delivery and drive-thru channels in our equity business increased over the year by around 70% in the month of May and 51% in June.
Legal act: Art. 17 Sec. 1 of Regulation (EU) No 596/2014 of The European Parliament and of The Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC