AmRest achieves third-quarter sales of EUR 632.8 million in Q3’23, up 11.6% compared to Q3´22
- EBITDA for the third quarter reaching EUR 110.9 million, with a 17.5% margin, the highest in the last two years
- In Q3’23 profit attributable to shareholders of the parent company amounted to EUR 27.1 million
- CAPEX in the quarter increased to EUR 43.5 million, compared to EUR 33.9 million in the same period of 2022
- The number of restaurants in the Company’s portfolio increased by 20 units to the total of 2.143 outlets
AmRest Group, a leading European multi-brand restaurant operator, continued to grow strongly by achieving third-quarter sales amounting to EUR 632.8 million in Q3’23, an increase of 11.6% compared to the same quarter of 2022. In terms of the comparable same-store sales, growth was 8.8%. As in previous quarters, sales growth was driven by further progress in the number of transactions, which increased by 3%, and by active revenue management.
The strong sales during the third quarter of 2023 contributed to generating the profit attributable to shareholders of the parent company amounting to EUR 27.1 million, which brings it to an accumulative figure of EUR 50.7 million compared to a loss of EUR -1.3 million in the same period of 2022.
According to Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE, “The figures we achieved in Q3’23 further demonstrate AmRest's commercial dynamics, confirming the extraordinary strength of the Group’s business model based on service excellence and the attractive value-for-money proposition of its products.”
AmRest’s EBITDA generated during Q3’23 reached EUR 110.9 million, a growth of 16.5% compared to same quarter of 2022. The EBITDA margin increased by 17.5%, the highest level since the global supply issues and inflationary pressures worldwide began to rise. Financial debt has been repaid, which is slightly reduced by EUR 1.6 million, to EUR 379.3 million at the end of the quarter. This situation, together with the Group's higher EBITDA generation, once again led to a reduction in the leverage ratio, which stood at 1.8x compared to 1.9x in the previous quarter. In addition, CAPEX in the quarter increased to EUR 43.5 million, compared to EUR 33.9 million in the same period of 2022.
Regarding performance in the countries and regions where AmRest operates, Central and Eastern Europe achieved the best results, with revenues amounting to EUR 354.1 million in Q3’23, an increase of 17.4% compared to the same period in 2022. Once again, the excellent performance of the commercial dynamics in Hungary stood out, with revenues growth rate above 30%. The EBITDA generated was EUR 78.9 million, after increasing by 26.6% compared to Q3’22, resulting in an EBITDA margin of 22.3%. The improvement in margins is generalized in all the main markets, which now have EBITDA margins above 20%.
Revenues in the Western Europe grew at a rate of 7.7%, resulting in EUR 230.9 million generation in the Q3’23. In the region, Germany performed best with a 20.6% increase in revenues. In terms of profitability, EBITDA stood at EUR 34.2 million, 23.1% higher than in the same quarter of 2022. This figure represents an EBITDA margin of 14.8%, 1.8 percentage points higher than a year ago.
Regarding business in China, revenues in the region stood at EUR 25.6 million, a decline of 4.3% compared to Q3’22, influenced by the depreciation of the Renminbi against the Euro. In local currency, sales recorded a remarkable growth of 9.5% as a result of the increase in transactions. The commercial positioning of AmRest business in China continues to provide an interesting opportunity for growth due to its geographic presence concentrated in the fastest-growing urban centres, and thanks to the attractive value-for-money proposition. EBITDA generated in the region amounted to EUR 5.6 million, representing an EBITDA margin of 22.0%.
“The margin improvement is mainly supported by our logistics and technology capabilities that result in achieving high levels of efficiency. We also continued to grow organically by increasing our total portfolio by 20 restaurants in line with our strategy to build our business in a profitable and sustainable way”, added Eduardo Zamarripa, Chief Financial Officer for AmRest Holdings SE.