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AmRest achieves first-quarter sales of EUR 592.6 million in Q1’24, up 5.2% compared to Q1’23

•    The company reached an all-time high consolidated EBITDA for a first quarter of the year, amounting to EUR 81.1 million, an increase of 14.9% compared to Q1 ‘23*

•    19 new restaurants were opened in the quarter, adding up to a total of 2,197 restaurants currently in the Company’s portfolio

•    In Spain, revenues increased by 13.9%, while EBITDA experienced a 21.1% growth

AmRest Group, a leading European multi-brand restaurant operator, continued to grow strongly by achieving first-quarter sales amounting to EUR 592.6 million in Q1’24, an increase of 5.2% compared to the same period of 2023*. In terms of comparable same-store sales, the index closed the quarter at 102, with transactions aggregated growth of 1.4%.  However, these consolidated figures show a significant disparity between different countries, with a great performance of the Polish market and a notable revenue increase in Spain.

Despite inflationary challenges and a slowdown in January, sales gradually recovered during the quarter. Moreover, the Company observed remarkable progress in digital sales which reached 56% of total sales, 6 points higher than last year. In this scenario, AmRest’s EBITDA generated during Q1’24 reached EUR 81.1 million, which represents a new record high in nominal terms for a first quarter of the year after registering a year-on-year growth of 14.9%*. The EBITDA margin increased by more than one percentage point, standing at 13.7%. The moderation in both supply prices and energy costs are the main reasons behind the improvement in profitability, which also reflects the progress made in terms of efficiency, the positive effects of economies of scale and appropriate pricing.

The higher financial expenses in consequence of the higher rates, alongside the progress made at the commercial level, resulted in a net profit of EUR -2.1 million. In the first quarter of 2023, The Company generated EUR 3.1 million, of which EUR 1.5 million came from continuing operations and EUR 1.6 million from discontinued operations.

Stable debt levels

AmRest's leverage ratio stood at 2.0x. In addition, the Group's gross financial debt remained virtually stable during the quarter at EUR 620.7 million, while net financial debt stood at EUR 454.6 million, an increase of EUR 57.2 million resulting from a decrease of EUR 60 million in the Group's cash, which remained at a healthy level of EUR 167.1 million. This balance sheet variation is the result of the normal seasonality in the cash generation of the business during the first quarter of the year, the payment of the transaction costs related to the new debt agreement and the execution of CAPEX from the high number of restaurant openings carried out during the last month of the financial year 2023. In addition, AmRest has available credit lines of EUR 254.9 million.

Finally, during this period, the Company opened 19 new units, mainly located in Central and Eastern Europe countries, and closed 10, resulting in a portfolio of 2,197 restaurants managed by AmRest at the end of the first quarter of 2024.

According to Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE, “It was another demanding quarter that again proved the solid foundations of our business model. An attractive price-value proposition based on high-quality products, AmRest unique service culture, as well as digital solutions in our restaurants, allowed us to effectively address the challenges we faced in this period.  We remain committed to our strategy, including ongoing expansion of our restaurant network to further broaden our customer base.”

Performance in different markets

Central and Eastern Europe maintained the biggest growth, with revenues amounting to EUR 335.3 million, an increase of 10.2% compared to the same quarter of 2023. EBITDA generated aggregated EUR 58.8 million with a growth of 23.0%, representing an EBITDA margin of 17.5% and an expansion of 1.8 percentage points.

Revenues in Western Europe reached EUR 218.7 million, an increase of 2.9% compared to the first quarter of 2023. EBITDA generated amounted to EUR 27.7 million, representing a year-on-year increase of 16.4%, and an EBITDA margin of 12.7%, 1.5 percentage points higher than in Q1’23. Specifically in Spain, revenues increased by 13.9% and EBITDA by 21.1%, resulting in a significant expansion of margins.

In China, the drop in consumption was significant, especially during the first weeks of the year, but consumer sentiment, and consequently AmRest's sales figures, improved notably as the quarter progressed. Revenues generated Q1’24 came to EUR 21.6 million, a decline of -12.9% compared to the same period of the previous year. In local currency terms, the effect is reduced to -7.4%, due to the depreciation of the Renminbi. EBITDA generated amounted to EUR 4.1 million compared to EUR 5.6 million a year earlier. This represents an EBITDA margin of 18.9% and a decline of 3.7 percentage points in profitability. 

*Represented to exclude discontinued operations in Russia