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.
MSCI UAE Index Inclusion
Effective from 1 June 2023, Americana Restaurants has been included in the MSCI UAE Index, widely recognised as an important benchmark for investment decision-making by investors in emerging markets, including regional Middle East markets. As a constituent of the MSCI UAE Index, Americana Restaurants is also a constituent of all regional and composite MSCI equity indices containing the UAE. These include the MSCI Emerging Markets Index, MSCI Emerging Markets Investable Market Index (IMI) and MSCI All Country World Index (ACWI), the provider’s flagship global equity index, designed to represent performance of the full opportunity set of large and mid-cap stocks across 23 developed and 24 emerging markets.
Financial Highlights
| $ millions | H1 2023 | H1 2022 | Change % |
| Revenue | 1,241.5 | 1,151.9 | 7.8% |
| Adjusted EBITDA | 291.7 | 271.0 | 7.7% |
| Adjusted EBITDA Margin (%) | 23.5% | 23.5% | |
| Net Profit (attributable to the shareholders of the Parent Company) | 144.8 | 121.3 | 19.4% |
| Adjusted Free Cash Flow | 110.9 | 140.2 | (20.9%) |
| Earnings per Share ($) | 0.0172 | 0.0144 | 19.4% |
Balance Sheet & Cashflow
The Company maintains a healthy balance sheet and a strong overall financial position. With adjusted free cash flow for H1 2023 of $110.9 million and a cash conversion ratio of 58.4%, Americana Restaurants is well-positioned to meet its future growth and capital expenditure commitments together with supporting its Dividend policy.
Management Outlook
Americana Restaurants is well-equipped to pursue growth across its markets of operation. By the end of the year, the Company expects to have added 250-260 net new restaurants, focusing on growth opportunities across its markets of operations with particular focus on Saudi Arabia. During the second half of the year, Americana Restaurants will continue to phase out existing inventory, which was strategically built up during 2022 to counteract global supply disruptions, supported by cool-off in key commodities as the Company looks to expand profit margins. In Egypt, Americana Restaurants remains focused on optimising operations, enhancing franchisor support and driving further cost efficiencies as it proactively navigates currency-related challenges in the country. The Company is also in a strong position to continue scaling its new brands, including further expansion of Pizza Hut and Peet’s Coffee in Saudi Arabia. The Company remains committed to expanding its digital offering and optimising off-premises revenue channels.
