Americana Restaurants announces Q1 2024 Financial Performance, reports $493.5 million in Revenue
- Revenue of $493.5 million in Q1 24, resulting in Adjusted EBITDA margin of 20.9%
- Continued restaurant portfolio growth with the opening of 37 new stores in Q1 2024 and 37 new restaurants under construction
- Persistent focus on optimizing costs and driving revenue opportunities
Abu Dhabi and Riyadh, 07 May 2024: 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 three-month period ended 31 March 2024, generating revenues of $493.5 million and adjusted EBITDA of $103.3 million.
Business Performance Impacted by Macro-environment and Ramadan Seasonality
In the first quarter of 2024, Americana Restaurants reported $493.5 million in revenues, a decrease of 16.3% year-on-year. Decline in revenues were primarily driven by lower like-for-like sales due to ongoing geopolitical tensions in the region, as well as the seasonal effect of Ramadan period.
During Q1 2024, Americana Restaurants reported lower cost of inventory vs Q1 2023, as a result of optimized use of raw materials and strategic procurement.
Americana Restaurants reported adjusted EBITDA of $103.3 million, maintaining a healthy margin of 20.9% vs 21.5% year-on-year. The Company benefited from lower cost of inventory and reduced marketing expense.
Net Income for the quarter, attributable to the shareholders of the Parent Company, stood at $28.0 million, impacted due to lower sales as a result of the geopolitical situation and onset of Ramadan, as well as higher depreciation charges and rent expenses on account of new store openings during the period.
Furthermore, the Company continued to exhibit financial resilience with a solid cash position of $159.9 million, indicating sustained financial health of the business.
Americana Restaurants continued to enhance its footprint with the opening of 37 gross new stores in the first quarter of 2024. As at 31 March 2024, Americana Restaurants’ portfolio stood at 2,456 restaurants, with 37 new restaurants under construction.
On 24 April 2024, Americana Restaurants held its Annual General Meeting, where shareholders approved distribution of total dividends amounting to $179.4 million (equivalent to $0.0213 per share), split between ordinary dividend of $129.7 million (equivalent to $0.0154 per share) and an additional one-time special dividend of $49.7 million (equivalent to $0.0059 per share).
Management Outlook
Americana Restaurants is committed to navigating the current economic adversities while continuing its expansion strategy. In 2024, the Company will continue expanding its restaurants portfolio by opening stores in markets which are less impacted by the current regional macro-environment. Management expects to open 200-225 net new stores in 2024.
Additionally, the Company will continue to focus on revenue recovery initiatives such as smart pricing, targeting, promotion and marketing, with sharp focus on driving transactions through value, crave and familiarity.
The Company expects to achieve improvements in gross profit margins for 2024; when compared with 2023. Looking forward to Q2 2024, management anticipates a lesser impact of Ramadan on sales compared to Q2 2023, when the majority of the Holy Month fell within the current period.
Financial Highlights
| $ millions | Q1 2024 | Q1 2023 | Change % |
| Revenue | 493.5 | 589.4 | (16.3%) |
| Adjusted EBITDA | 103.3 | 126.9 | (18.6%) |
| Adjusted EBITDA Margin (%) | 20.9% | 21.5% | |
| Net Profit (attributable to the shareholders of the Parent Company) | 28.0 | 58.1 | (51.8%) |
| Adjusted Free Cash Flow | (26.5) | 16.9 | NM |
| Earnings per Share ($) | 0.0033 | 0.0069 | (51.8%) |
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