Americana Restaurants International, owners of out-of-home dining and quick service restaurants such as KFC and Pizza Hut in the Middle East & North Africa and Kazakhstan, posted a 1.5 percent increase in revenue to $2.41 billion, a growth of 1.5 percent year-on-year.
In its 12-month financial results, Americana Restaurants opened a record 300 gross new stores at a cost of $167.9 million, equivalent to 7 percent of revenues, which helped it overcome the evolving market dynamics and position itself for continued growth.
Despite an impact of $106 million because of unfavourable foreign exchange movements, especially in Egypt, and the impact on business during the fourth quarter due to recent regional geopolitical tensions, adjusted EBITDA increased to $550.8 million, reflecting a 2.8 percent growth year-on-year with an adjusted EBITDA margin of 22.8 percent.
Net profit for 2023 increased marginally by 0.1 percent, with a net profit margin of 10.8 percent. This was achieved despite higher depreciation charges of $32.8 million, compared to 2022, due to new store openings, and the lower revenue impact on Q4 earnings.
The expansion with 300 gross new restaurants brought the total store count to 2,435 as at the end of 2023. The company also launched Peet’s Coffee in the region, with stores in the UAE and Saudi Arabia, catering to the growing demand for premium coffee.
The board announced 2023 ordinary dividend of $130 million (equivalent to $0.0154 per share) in line with its previous guidance, and an additional one-time special dividend of $50 million (equivalent to $0.0059 per share).
Americana Restaurants’ cash flow from operations increased by 18.9 percent to reach $539.8 million in 2023. The company had an adjusted free cash flow of $182.8 million and a cash conversion ratio of 52.1 percent.
KFC, which celebrated its 50th year in the region, opened its 1,000th store and contributed approximately 61.3 percent of the company’s revenues, amounting to $1,479.4 million. Hardee’s generated revenues of $395.5 million, approximately 16.4 percent of total revenues. Pizza Hut contributed 11.7 percent of Americana Restaurants’ revenues, totalling $281.3 million.
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