In This Article:
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EBITDA Growth: 7% increase in EBITDA, driven by Frango Assado and Airport businesses.
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Corporate G&A Reduction: Decreased by 6.5%.
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Store Count: 571 stores, with a net addition of 48 stores compared to Q3 2023.
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KFC Turnover Growth: 21% increase in turnover.
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Same-Store Sales: Flat overall; 3% growth in Brazil, 12% decline in the USA.
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Digital Sales: Grew almost 60% year-on-year, accounting for 57% of sales in key brands.
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Net Revenue: Flat year-on-year; 5% growth in Brazil, 6% decline in the USA.
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Operating Cash Flow: BRL99.2 million, a 27.7% increase year-on-year.
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Free Cash Flow: BRL62.9 million, a 32.5% increase compared to Q3 2023.
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Net Debt: BRL351 million, with a leverage ratio of 2.3x net debt/EBITDA.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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International Meal Co Alimentacao SA (BSP:MEAL3) achieved a 7% growth in EBITDA despite a flat revenue scenario.
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The company successfully reduced corporate G&A expenses by 6.5%, contributing to improved profitability.
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Digital sales grew by almost 60% year-on-year, accounting for 57% of sales for KFC, Frango Assado, and others, showcasing successful digital transformation efforts.
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Frango Assado's profitability improved due to cost control and operational efficiency, with self-checkout transactions accounting for 75% of total transactions.
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Operating cash flow increased by 27.7% compared to the same period last year, driven by efficient cost management and working capital management.
Negative Points
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Revenue remained flat year-on-year, impacted by the closure of 13 stores and underperformance in the United States.
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Same-store sales growth was flat, with KFC and U.S. operations underperforming, particularly due to a 12% decline in the U.S.
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The closure of high-revenue stores, including three Frango Assado and two U.S. stores, negatively impacted overall revenue.
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The U.S. operations faced challenges with longer-than-expected maturation curves for new stores and a tough market environment.
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Leverage remains a concern, with net debt increasing by 2% to BRL351 million, and the company maintaining a leverage ratio of 2.3x net debt/EBITDA.
Q & A Highlights
Q: Can you provide more details on the investments currently underway? A: Alexandre de Jesus Santoro, CEO: IMC is a multi-brand platform, and part of our strategy involves periodically assessing our portfolio. We've invested in regions like Central America, Panama, Colombia, Brazil, and the USA. We continue to explore opportunities that align with our vision and add value to the company.