Americana Restaurants announces H1 2024 results, reports $1.05 billion in Revenue

 Americana Restaurants International PLC (“Americana Restaurants” or the “Company”) (ADX symbol: AMR/ ISIN: AEE01135A222) (Saudi Stock Exchange symbol: 6015), the largest out-of-home dining and quick service restaurant operator in the Middle East & North Africa (“MENA”) and Kazakhstan, today announced its financial results for the six months ended 30 June 2024.

The Company reported revenues of $1.05 billion, a decrease of 15.2% year-on-year. Revenue growth was impacted by lower like-for-like sales due to the ongoing regional geopolitical situation, despite support from new store openings. 

Net profit (attributable to the shareholders of the Parent Company) for the first half of 2024 was $80.0 million. Net profit was impacted due to lower sales, and incremental depreciation charges on account of new store openings during the period. 

In Q2 2024, compared to Q2 2023, revenue declined 14.2%. However, compared to Q1 2024, the Company observed 13.3% growth in revenue, on account of recovery seen in some of its markets, fewer Ramadan days, further supported by both Eid events falling in the second quarter. Similarly, net profit declined 40.1% compared to Q2 2023, however, net profit increased by 85.3% compared to Q1 2024. 

Business Resilience Amid Market Challenges

Despite implementing value-based promotions as a strategic effort to drive transaction momentum, gross margins improved in Q2 2024 driven by favourable commodity prices and procurement and revenue management initiatives. 

Furthermore, the Company continued to expand its restaurant network by selectively expanding in less impacted markets and opened 81 gross new stores in the first half of 2024, bringing its total restaurant count to 2,477 as of 30 June 2024.

Financial Highlights 

Balance Sheet & Cashflow 

Americana Restaurants maintains a healthy balance sheet and a strong financial position. With an adjusted free cash flow of $44.1 million for the first half of 2024 and a cash conversion ratio of 33.4%, the Company is well-positioned to meet its growth plans together with supporting its dividend policy.

Management Outlook 

Americana Restaurants is strategically positioned for progressive expansion within its operational territories. However, in consideration of the evolving geopolitical environment, the Company has opted for a watchful approach to store expansion plans and expects to add 175 – 185 net new restaurants in 2024. 

Additionally, the Company will continue to focus on revenue recovery initiatives such as smart pricing, targeting, promotion and marketing, with a sharp focus on driving transactions along with increasing marketing investments.

Further, the Company continues to do store-level and G&A platform optimization including enhancing sourcing efficiencies.