The company said in a statement to the Securities Market Commission (CMVM) that it recorded consolidated profits of 9.5 million euros in the first nine months of this year, a growth of 29.6%.
Ebersol presented its accounts for the third quarter, and announced a net result from continuing operations of 9.5 million euros, which represents an increase of 2.2 million euros compared to the same period in 2022. That is, recurring profits increased by 29.6%.
Following the sale of the Burger King operation in Portugal and Spain at the end of November 2022, the activity of all Burger King restaurants in 2022 and restaurants not yet sold in 2023 was reported as a “discontinued operation” in terms of reporting financial information.
Total EBITDA from continuing operations amounts to €55.7 million, implying growth of 37.9% compared to the same period in 2022.
Regarding sales, Ebersol says that “in the third quarter of 2023, despite the demanding economic context, namely the pressure on purchasing power resulting from high levels of inflation in parallel with the deterioration of interest rates in the markets in which we operate, the group recorded a growth of 11% compared to The same period last year.
The restaurant group explains that “the monthly evolution of the performance in the different geographies highlights the comparability since April with more demanding and unrestricted periods in 2022 and the impact of expansion, with the opening of new restaurants in Portugal and Spain, recording a gradual increase in the slowdown in the pace of growth, with The incidence is greater in the summer months, which traditionally see greater increases in sales.
“Despite the slowdown in the growth rate of the restaurant market in the geographies in which we operate, the Group recorded increases in all three business segments, focusing on counters, concessions and catering with relative performances exceeding 25% and 28%, respectively compared to the same period,” Ebersol reveals.
In Angola, despite the good performance of the local currency, activity is characterized by a sharp devaluation of the exchange rate (more than 50% of the kwanza against the euro), with its effect since June, causing a decline in activity in euros, he adds.
The restaurant group also says that the evolution of demand “requires an effort to absorb the impacts in terms of margins, in order to maintain volumes with occasional price increases.”
The combined turnover of continuing operations amounted to 310.1 million euros. This translates to a growth of 21.9% compared to the same period in 2022.
“Investments in opening new restaurants also contributed to ensuring the growth of ongoing operations by approximately 22% in the first nine months of the year, recording total sales until September 2023 of 310.1 million euros compared to 254.4 million euros in the same period.” period last year,” he reveals.
The group, which has restaurants under the Pans, Pizza Hut and KFC brands, among others, reported net debt rose by €119 million to €39.8 million in one year.
“At the end of the third quarter, net debt (including lease liabilities) amounted to €39.8 million, representing an increase of €119.1 million compared to the amount of negative debt at the end of 2022 (-€79 million), of which €101.5 million.” US$1 million corresponds to lease commitments for new contracts at the airports.
Therefore, there is a gearing ratio of 10% (-26% in 2022).”
The group, which operates several restaurant brands and airport concessions, had 494 units at the end of September. At the end of 2022, Ebersol owned 487 units.
According to Ebersol, “The increase in payroll costs and the start-up of new franchises with lower productivity due to operating in temporary formats, led to an increase in staff costs by 23.5%, with the weight of this item now representing 30.2% of the turnover.” “.
External supplies and services costs rose by 10.8% in this period, “and now represent 29.3% of turnover, which translates into a decrease in the weight of this component by 2.9 percentage points.” [pontos percentuais] Compared to the same period in 2022.”
The company explained that the total investments completed amounted to 14.3 million euros, of which about 11 million euros were equivalent to “the investments incurred in implementing the expansion plan and the rest in redesigning and modernizing a group of restaurants.”
In its outlook for the future, the company stated that “as expected, there has been a slowdown in growth resulting from the effects of inflation and the increase in interest rates that occurred over the past year to stem the rise in inflation.”
“In the context of the fragility of household disposable income, in parallel with the escalation of tension in the Middle East and the continuation of the conflict in Ukraine, a decline in the level of consumer confidence and the resulting impact on private consumption is expected.” Shown.
He stressed that this context “imposes increasing demands on our teams and our brand portfolio, in order to ensure that volumes and market shares are maintained, in addition to efforts to minimize the impact resulting from the start of the conversion of new franchise restaurants at Lanzarote, Madrid and Tenerife airports.”
This process “will put increasing pressure on profitability, until all restaurants are fully converted into final shapes and concepts,” Ebersol said.
On the other hand, the group intends to “continue expansion plans for the Pizza Hut, KFC and Taco Bell brands, with the opening of more than ten new restaurants by the end of the year, as well as the start of operations at Pret A Manger in three airports in Spain.”
Ibersol shares rose 0.90% on the stock exchange today to €6.70.
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