AmRest, the owner of restaurant operators, among them Noodle, earned an income of $606.7 million in the second quarter of 2023, an increase of 16.6% over the previous year. The Group’s consolidated profit for the first half of 2023 was €1,169.9 million, 18.9% more than in the same period of 2022.
The positive business development, together with the gradual recovery of margins, made it possible The net profit in the second quarter of 2023 is 23.8 million euros, with a contribution of 5.0 million euros from discontinued operations after the deconsolidation of the business in Russia. In the second quarter of 2023, the group sold its remaining businesses in Russia, completely ceasing its business presence in this market.
AmRest’s profitability has increased thanks to cost control, efficiency gains, and increased value creation in operations. The successful execution of these initiatives allows the Group to limit the impact of costs on customers and continue to maintain an attractive price-performance ratio consistent with margin recovery. In addition, in the second quarter of 2023, a slight decrease in the cost pressure of the last few quarters can be seen. This made it possible to increase EBITDA in Q2 2023 to €101.4 million, representing growth of 25.3%* and a margin of 16.7%. The EBITDA for the first half of the year is thus 172.0 million euros, 15.4% more than in the same period of 2022.
The group’s net assets amounted to 383.2 million euros at the end of the first half, after increasing by 52.0 million euros in the first six months, a growth of 15.7%. In addition, net debt stands at 380.9 million after being reduced by 44.5 million this year. This situation allows AmRest to easily meet its financial obligations.
Finally, the company has opened 29 units during this period, and it is expected that most of the planned openings and necessary investments will be concentrated in the second half of the year.
All of the major regions where AmRest operates continued to see an uptrend. Central and Eastern Europe featured the best results, with sales of €334.4 million in the second quarter of 2023, a 19.7% year-on-year growth. The generated Ebitda was 68.5 million euros, 13.7 million more than in the same period of 2022, with an Ebitda margin of 20.5%. In Western Europe, sales for the second quarter were €224.9 million, up 9.8% on the same period in 2022. Ebitda achieved was €31.6 million, against a growth of 14.9% corresponding to the previous year.
The reopening of the economy and the increase in mobility in China have enabled AmRest to resume the growth path of its operations in the country. Thus, sales in the second quarter amounted to EUR 26.7 million, which corresponds to an increase of 88.0% compared to the same period of the previous year. Based on EBITDA, 5.5 million euros were generated in the second quarter, which corresponds to a margin of 20.6%.
Eduardo Zamarripa, CFO of AmRest Holdings SE, assures that one of the keys to success lies in the company’s cost control efforts. “Efficiency is a key competitive advantage,” he said. “For this reason, the group regularly carries out a comprehensive study of possible value-added initiatives and channels the best practices between the different markets and brands. This allows us to offer our customers attractive value for money along with a unique and enjoyable offering while remaining on the path of profitable and sustainable growth.
