Financial
Americana Restaurants announces nine months 2024 results, reports $1.61 billion in Revenue
Americana Restaurants International PLC today announced its financial results for the nine-month period ended 30 September 2024.
Year-on-Year Performance
Americana Restaurants reported revenues of $1.61 billion in the first nine months of 2024, a decline of 15.2% compared to the same period in 2023. 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.
The company registered a year-on-year improvement in gross margins, supported by favourable commodity trends and procurement initiatives.
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.
Net profit (attributable to the shareholders of the Parent Company) for the first nine months of 2024 was reported at $117.4 million, a decrease of 48.2% year-on-year. 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 30 September 2024.
Financial Highlights
| $ millions | Q3 2024 | Q3 2023 | Change % | 9M 2024 | 9M 2023 | Change % | |
| Revenue | 555.0 | 655.5 | (15.3%) | 1,607.8 | 1,897.0 | (15.2%) | |
| Adjusted EBITDA | 117.9 | 154.8 | (23.8%) | 350.6 | 446.5 | (21.5%) | |
| Adjusted EBITDA Margin (%) | 21.2% | 23.6% | 21.8% | 23.5% | |||
| Net Profit (attributable to the shareholders of the Parent Company) | 37.4 | 81.9 | (54.3%) | 117.4 | 226.7 | (48.2%) | |
| Adjusted Free Cash Flow | 12.1 | 84.1 | (85.6%) | 56.2 | 195.0 | (71.2%) | |
| Earnings per Share ($) | 0.0044 | 0.0097 | (54.3%) | 0.0139 | 0.0269 | (48.2%) | |
Balance Sheet & Cashflow
For the period ending 30 September 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 program, cost-saving practices, and technology integration to enhance its operational performance.
Americana Restaurants remains committed to consistently monitoring its operations across various markets to adapt and navigate through current challenges efficiently. The Company remains flexible and strategic in response to the evolving market conditions.