Americana retaurants
Americana 9M net slumps 48.2pc to $117.4m, revenue at $1.61bn
RIYADH, October 31, 2024
Americana Restaurants International, the largest dining and quick service restaurant operator in Mena and Kazakhstan, has seen its nine-month (9M) attributable net slump 48.2% to $117.4 million as revenue fell 15.2% to $1.61 billion.
Topline growth continued to be impacted by lower like-for-like sales due to the evolving regional geopolitical situation and slowness in consumer demand observed in some markets, despite support from new store openings, a release said.
The company registered a year-on-year improvement in gross margins, supported by favourable commodity trends and procurement initiatives.
Lower revenue base
Further, the company reported adjusted EBITDA of $350.6 million, resulting in 21.8% margin. The adjusted EBITDA margin for the first nine months of 2024 were impacted by lower revenue base; partially supported by various cost mitigation efforts.
In addition to impact from lower EBITDA, net income declined due to incremental depreciation charges on account of new store openings during the period, as well as the implementation of corporate tax in the UAE.
Americana Restaurants reported $555.0 million in revenues in Q3 2024, which was marginally down by 0.8% compared to Q2 2024, reflecting business resilience amidst continued conflict.
In Q3 2024, the company witnessed a noticeable recovery in average daily transactions as well as average daily sales per store compared to Q2 2024.
Americana Restaurants expanded its regional footprint by adding 113 gross new stores in the first nine months of 2024, bringing its total restaurant count to 2,504 as of September 30, 2024.
Balance sheet & cashflow
For the period ending September 30, 2024, Americana Restaurants continued to maintain a healthy balance sheet with no leverage and strong cash reserves. With an adjusted free cash flow of $56.2 million, the company is adequately positioned to meet its capex requirements.
Management outlook
Americana Restaurants is focused on building transaction momentum through various strategic initiatives such as everyday value offers across markets to increase order frequency, targeted promotional activities aimed at driving engagement, and competitive deals to attract new customers.
In addition, the company is implementing a strategic blend of revenue enhancement initiatives, store expansion programme, cost-saving practices, and technology integration to enhance its operational performance.--TradeArabia News Service
