Americana Restaurants: Revenue climbs 15.9% to $ 2.38 billion, net income of $259.2 million up 27.1%

Americana Restaurants International PLC and its subsidiaries (“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 twelve-months ended 31 December 2022.

Mr. Mohamed Ali Rashed Alabbar, Chairman of Americana Restaurants, said:

“As a pioneer with over 50 years of heritage across the Middle East and North Africa, 2022 was a landmark year. Americana Restaurants elevated its global presence as a publicly listed company, in readiness for its next chapter as one of the most profitable, growth-oriented and diversified F&B operators. The MENA region remains uniquely attractive for out-of-home dining, with strong macroeconomic tailwinds, a growing youth population and soaring urbanisation. These dynamics, coupled with the cultural internationalism of our target markets, provides our business with a springboard for growth across MENA and Kazakhstan.

 Americana Restaurants’ near-term focus will be to leverage the strength of its platform to increase the penetration of existing brands, enter new categories and expand geographically both organically and inorganically by entering new markets. The Company will also continue to invest in restaurant redesigns and organisational efficiency to minimise capital recovery periods and maintain cost discipline.”

Robust Full-Year Growth in First Earnings Since Historic IPO

In its first announcement of financial results since its historic concurrent dual listing on the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange (Tadawul), Americana Restaurants maintained strong growth momentum in 2022 with annual revenue of $2.38 billion increasing by 15.9% year-on-year. Top-line growth was driven by robust like-for-like sales growth of 13.6%, and 220 gross new store openings. The Company generated Adjusted EBITDA of $536 million, increasing by 15.4% vs. 2021, and a healthy EBITDA margin of 22.5%. Net income (attributable to shareholders of the Parent Company) grew to $259.2 million in 2022, up 27.1%, resulting in a net income margin of 10.9%.

Americana Restaurants closed 2022 with 2,183 operating restaurants, including 186 gross openings for its “Power Brands” KFC, Pizza Hut, Hardee’s and Krispy Kreme. With its omnichannel platform continuing to grow in strength and scale, Home Delivery contributed 39% of total revenue, followed by Takeaway (24%), Dine-in (21%), Drive-thru (10%) and Others (6%).

Dividend Outlook

Americana Restaurants Board announced H2 2022 dividends at $103.5 million or the equivalent of $0.0123 per share in line with its previous guidance. The dividend will be subject to shareholders approval at their Annual General Meeting (date to be announced).

Management Discussion & Analysis

Financial Highlights

Revenues by Brand

KFC

KFC contributed approximately 61% of the Company’s revenues in FY2022 ($1.5 billion), crossing a record 100 million transactions for the first time. The brand delivered strong like-for-like sales growth of 17.9%, cementing KFC’s position as the #1 brand in the chicken segment. In 2022, KFC opened 54 gross new units, with expansion primarily focused on Saudi Arabia, Morocco and the UAE.

Hardee’s

FY2022 was a transformational year for Hardee’s and the brand generated revenues of $403 million, contributing approximately 17% of the Company’s revenues. These results were driven by solid performance in all key markets, particularly Saudi Arabia, Kuwait and UAE. Hardee’s added 18 gross new stores in 2022, reaching a total of 391 stores across 10 operating markets.

Pizza Hut

Pizza Hut accounted for approximately 11% of Americana Restaurants’ revenues ($264 million) in FY2022. The brand had a consistent year maintaining its leadership position across core markets by delivering total revenue growth of 12%. Americana Restaurants relaunched Pizza Hut in Saudi Arabia in June 2022, acquiring country-wide franchise rights (excluding Jeddah). The revamped value proposition of Pizza Hut drives brand relevance for the Saudi consumer through superior quality, pizza innovation, value for money and omni-channel experiences. The brand footprint has grown successfully in the Kingdom, with 30 stores opening in the second half of 2022.

Krispy Kreme

Krispy Kreme contributed approximately 4% of annual revenues, generating $90 million in sales, supported by its opening in Jordan and accelerating growth in Egypt. During 2022, Krispy Kreme enhanced product innovation by collaborating with major confectionary brands such as KitKat and Lotus. It opened 68 gross new units, with off-premise focused footprint expansion primarily in Saudi Arabia.

Balance Sheet & Cashflow

Americana Restaurants maintains a very healthy balance sheet and strong overall financial position. With adjusted Free Cash Flow for the period of $179 million and a cash conversion ratio of 49.3%, the Company is well positioned to meet its growth and capital expenditure commitments and support its dividend policy.

Management Outlook

Looking ahead, Americana Restaurants is ready to capitalise on opportunities to improve profitability by maintaining a sharp focus on revenue growth and margin expansion. Management will continue to execute and refine the Company’s long-term strategy across the Middle East, North Africa and Kazakhstan in pursuit of industry-leading shareholder value creation.