Americana profits shrink to SAR 218 mln during 1Q by 19%

The net profit of Americana Restaurants International PLC, after zakat and tax, decreased to SAR 218 million during the first quarter, compared to SAR 270 million in the same quarter of last year, at a rate of 19%. This came after an announcement on Thursday of the interim financial results for the period ending on 31.03.2023 (3 Months).

The operating total profit amounts to SAR 248 million in the first quarter, compared to SAR 308 million in the same quarter of the previous year, a decrease of 20%.

As for the total profit, amounts to SAR 1.12 billion in the first quarter, compared to SAR 1.15 billion in the same quarter of the previous year, a decrease of 3%.

Profit per share in the current period is SAR 0.03 riyals, compared to SAR 0.03 in the same period last year.

The company stated that following its strong performance over FY 2022, Americana Restaurants has continued to build on the momentum in 2023, reporting $589.4 million in revenues for the first quarter, up 2.1% year-on-year. Despite the partial seasonal shift of the Holy Month of Ramadan from Q2 2022 to Q1 2023, along with currency devaluation in Egypt and Lebanon, the Company achieved healthy year-on-year revenue growth.

Net income (attributable to shareholders of the Parent Company) was $58.1 million in Q1 23, down 19.2% from $72.0 million, impacted by commodity-driven inflationary headwinds and lower sale volumes in March due to Ramadan.

On a comparative basis, performance was robust given the occurrence of Ramadan, which generally sees families and friends gather together to enjoy home-cooked food, rather than eat out or order in. Meanwhile, commodity-driven inflationary headwinds are expected to ease in the second half of 2023.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is attributable to the decrease in revenues by 3.0%, from $607.5 million in Q4 2022.

Net income (attributable to shareholders of the Parent Company) was $58.1 million in Q1 23, down 8.3% from $63.4 million due to the seasonality impact of Ramadan.

In Q1 2023, the Company added 49 gross new restaurants. As of 31 March 2023, Americana Restaurants’ restaurant portfolio stood at 2,228 restaurants, with 63 new restaurants under construction

On 28 March 2023, Americana Restaurants held its first Annual General Meeting, where shareholders approved a $0.0123 dividend per share for the second half of 2022. Total dividends distributed for the second half of 2022 amounted to $103.5 million.