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 announces its financial results for the six months ended 30 June 2023.
The Company reported revenues of $1.24 billion and adjusted EBITDA of $291.7 million for the first half of 2023, delivering 7.8% and 7.7% growth respectively vs. the same period in 2022. This has been supported by significant restaurant portfolio expansion, increased like-for-like sales and operating efficiencies. It should be noted that last year, in H1 2022 there was a one-off tax payment to settle an indirect legacy tax charge in Egypt of $25.5 million.
Americana Restaurants’ H1 2023 net profit (attributable to shareholders of the Parent Company) increased 19.4% to $144.8 million.In Q2 2023, compared to Q2 2022, the Company delivered 13.5% revenue growth, which was supported by positive impact from fewer number of Ramadan days. Net profit (attributable to shareholders of the Parent Company) for Q2 2023 was $86.6 million, an increase of 16.7% after adjusting for the aforementioned one-off tax payment of $25.5 million to settle an indirect legacy tax charge in Egypt.
Robust Revenue Growth
Americana Restaurants’ robust year-on-year revenue growth was underpinned by a continued commitment to expanding its diverse restaurant store portfolio across its operations in the Middle East, North Africa and Kazakhstan.
The Company successfully opened 108 gross new stores during the first half of 2023, bringing its total Restaurant count to 2,277 stores as at 30 June 2023.Top-line gains were also driven by positive momentum in like-for-like sales, which measures revenue growth for Restaurants that have been operational for 12 months. Like-for-like revenue increased 7.2% vs. H1 2022, enabled by healthy performance of KFC and Pizza Hut, in particular.With first-half adjusted EBITDA of $291.7 million, up 7.7% (vs. H1 2022), the Company maintained a healthy adjusted EBITDA margin of 23.5% despite an increase in carryover inventory costs compared to H1 2022.
For reference, Americana Restaurants strategically increased its inventory levels in 2022 to prevent stock-outs and to counteract global supply chain disruptions. Subsequently, management has successfully phased out the higher cost inventory during H1 2023; this combined with the lowering costs of key commodities will support the margin expansion in future periods.Over the past 12 months, Americana Restaurants added 262 gross new stores to its expanding regional footprint. Given its focus on expansion, a further 84 stores were under construction as at 30 June 2023. These will help us in achieving the Company’s target of opening 250-260 net new stores during 2023