AmRest achieves highest ever quarterly revenues, reaching 606 million EUR in Q2 2022
- An all-time high consolidated revenues for a quarter, reaching 606 million EUR in Q2, 30.4% growth Y-o-Y, and revenues of 1,113 million EUR for H1 2022, 31.8% higher than in the same period of 2021.
- The Group’s EBITDA reached 100.8 million EUR in Q2 2022, with a 16.6% margin, while H1's EBITDA amounted to 176 million EUR, with a margin of 15.8%.
- A total of 29 new restaurants were opened in the first half of the year.
AmRest Group, a leading European multi-brand restaurant operator, continued a growth trend by posting a new sales record in the second quarter of 2022 with revenues of 605.7 million EUR, an increase of 30.4% year-on-year, surpassing the 600 million EUR mark for the first time in its history. In terms of the comparable same-store sales index the level stood at 123%.
The excellent commercial dynamics continue to be highly correlated with the easing of pandemic restrictions in most of the regions where the Group operates, except for the China business, which remained affected by the Zero Covid policy restrictions. As a result, the Group's consolidated revenues for the first half of 2022 amounted to 1,112.7 million EUR, 31.8% higher than in the same period of 2021.
AmRest's strength in the Quick Service Restaurants sector, together with its proven resilient model adapted to new trends and consumer habits, allowed the EBITDA margin for the second quarter of 2022 to stand at 100.8 million EUR, with a 16.6% margin. This brings the EBITDA generated during the first half of the year to 176.1 million EUR with a margin of 15.8%, exceeding by more than 22 million EUR the levels achieved during H1 2021 (which however included 28 million EUR from the Covid support measures approved by different governments). In this sense, excluding the contribution of these extraordinary support measures, the EBITDA margin in H1 2022 increased by 1 percentage point despite the ongoing high-cost pressures.
The Group's shareholders' equity increased by 3.8% in the quarter and by 15.8% in the last year despite a significant impairment of EUR 52.9 million in the valuation of the KFC Russia business. However, the total impairment figure was partially offset by the reversal of impairments at restaurant level, where, for the first time since the beginning of the pandemic, the number of restaurants reversing impairments, 121, exceeded the number of units requiring additional impairments, 84, resulting in a net reversal of EUR 2.3 million.
Net debt reached EUR 433.7 million, having been reduced by 196 million EUR since the start of the pandemic and by 33.9 million EUR during the year. Finally, cash levels increased by 61.0 million EUR to 240.5 million EUR.
According to Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE, “the figures achieved both in Q2 and H1 2022 continue to demonstrate the resilience of AmRest’s business model. The Group’s strong sales momentum, supported by a gradual lifting of Covid restrictions in most of the regions where we operate, further underlines our ability to adapt to the new consumer trends and the compelling value proposition that our customers find in our brands' offerings. At the same time, we continued to focus on our goal of making our customers' experience more enjoyable and exciting t, while improving our restaurants results. Having leading brands, a global distribution capability, and a motivated and committed team, provides a great competitive advantage that allows us to face the future with optimism despite of the challenges ahead”.
In terms of restaurants units, as already announced, the company's restaurant portfolio has been adjusted due to the transfer of all Pizza Hut restaurants located in Russia to a local operator. Accordingly, the Group operated 2.382 premises at the end of H1 2022. AmRest successfully executed its opening plan as, from an organic perspective, 18 new units were opened during the quarter, bringing the total number of new store openings for the half year to 29. Thus, the Group continues with its goal of optimising its portfolio with a focus on profitability, managing the restaurant footprint, regions or brands adjustments according to the company’s strategic outlook.