AmRest achieves all-time record quarter sales* of EUR 638.9 million and its highest ever EBITDA* nominal figure of EUR 112.8 million in Q2’24

• Excellent commercial momentum boosts quarterly sales to a new all-time high, reaching EUR 638.9 million in Q2’24, an increase of 5.3% vs last year
• Revenues of EUR 1,231.5 million for H1’24, 5.3% higher than in the same period of 2023
• The Group’s EBITDA in the second quarter accelerated to EUR 112.8 million, the highest nominal figure in AmRest's history, while in H1’24, the EBITDA figure stood at EUR 193.9 million, up 12.7% year-on-year
• In Spain, sales grew at a rate of 7.3% during the second quarter of 2024
• AmRest opened 22 new restaurants and renovated 110 during the quarter

AmRest Group, a leading European multi-brand restaurant operator, has continued its growth trend in the second quarter of the year by achieving a new quarterly sales record amounting to EUR 638.9 million, the highest quarterly revenue level in the Group's history. The figure represents a 5.3% increase compared to the same period of 2023. In addition, the Group's consolidated revenue figures for the first half of 2024 reached EUR 1,231.5 million, with a growth of 5.3% vs 2023. 

During the first half of the year, the major European markets have shown relatively weak economic growth while inflation continued to moderate across the board. In this scenario, AmRest’s new quarterly revenue record becomes more relevant in a context where consumer spending has been subdued. As has proved to be the case over the past years, the success of AmRest's strategy resides in its ability to adapt to a more price-sensitive and value-seeking customer.

As a result, AmRest’s EBITDA generation in the second quarter accelerated to EUR 112.8 million, the highest nominal figure in AmRest's history, with an 11.2% year-on-year increase. Margin recovery also accelerated, driven by moderate inflationary pressures and despite intense competition in some markets. In terms of EBITDA margin, profitability increased by 1 p.p. to 17.7%.

The Group operating profit (EBIT), stood at EUR 4.9 million after booking impairments for EUR 44.0 million during the quarter, of which EUR 41.1 million corresponds to a value adjustment of the goodwill associated with the Sushi Shop business, and therefore it has no impact on the Group's liquidity or cash generation. The EBIT margin for the quarter was 0.8%. Excluding the effect of the goodwill impairment, adjusted operating profit reached EUR 46.0 million, representing a margin of 7.2% compared to 6.1% in the same period of 2023. The operating profit during H1’24 amounted to 23.5 million euros, representing a margin of 1.9%.

Financial leverage at low end of target level

The Group's risk profile remained virtually unchanged during the period. The leverage ratio stood at 2.0x, the same level as the previous quarter despite a significant increase in the Group's CAPEX that reached EUR 47.1 million, an increase of 61.9% quarter on quarter and 38.5% year-on-year. 

The Group's liquidity corresponded to EUR 136.4 million at the end of the quarter. In addition, the Group has liquidity lines and credit facilities amounting to EUR 255.4 million. This level of liquidity, together with additional liquidity lines and credit facilities for EUR 255.4 million, is considered an efficient level according with the Group´s needs.

Momentum for new restaurant openings and renovations

At the end of the second quarter of the year, the number of restaurants managed by AmRest stood at 2,177 units, following the opening of 22 new restaurants and the closure of 14. During this period, the number of restaurants renovated or upgraded has accelerated to 110 units, doubling last year´s figure.

According to Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE, “the results presented today are a testimony of our robust business model, capable of successfully facing challenges and embracing the opportunities in the hospitality industry. We’re fully committed to continue boosting our highly customer-centric culture, offering high-quality innovative products developed by passionate professionals.”

Strong performance in the different business regions

Amongst all major regions where AmRest operates, Central and Eastern Europe stood out for the best performance, with revenues aggregating to EUR 368.8 million during the second quarter, an increase of 10.3% over the previous year. EBITDA generated in the region during the quarter amounted to EUR 73.8 million, representing a margin of 20.0% and 7.7% year-on-year growth. Regarding the first half of the year, total revenues was EUR 704.1 million, an increase of 10.3%, and an EBITDA of EUR 132.6 million, which represents a margin of 18.8% and a growth of 14.0%.

As for Western Europe, quarterly revenues in the region represented EUR 223.8 million, virtually flat compared to 2023 and with a noticeable sales increase in Spain, growing by 7.3%. During the quarter, EBITDA reached 36.7 million euros, representing a margin of 16.4% and growth of 16.3%. Revenues for the first half of the year scored EUR 442.6 million, a growth of 1.2%, with the EBITDA standing at EUR 64.4 million, a margin of 14.6% and a growth of 16.3%.

Concerning China, sales in the region declined by -6.2% in euros to EUR 25.1 million, however, in local currency, the effect was reduced to -4.3%. The decline in business generation was caused by the macroeconomic situation and a global drop in consumption.  Despite the challenges, the commercial management led to a recovery in activity as the year progressed. These efforts resulted in a significant expansion of margins and growth in EBITDA generation at the nominal level, which amounted to EUR 6 million, representing a margin of 23.9% compared to 20.6% in the same period of the previous year. During the first half of the year, sales amounted to EUR 46.7 million, a decline of -9.4%; in constant euros, the decline was -6.1%. EBITDA reached EUR 10.1 million, with a margin of 21.6%.

*Excluding Russia business