Restaurant Brands New Zealand (RBD) H1 2024 earnings summary

Executive summary

• Group sales reached a record $687.2m–$687.2 million in 1H 24, up 7%–7.3% year-over-year, driven by product innovation, digital channels, and strong performance in New Zealand and Hawaii.

• Net Profit After Tax (NPAT) increased to $12.6m from $2.2m in 1H 23.

• Group store EBITDA rose 20.8% to $94.6m, with margin recovery initiatives and cost control contributing.

• Store network expanded to 506 stores, with 13 net new stores added since 1H 2023.

• Strategic focus on cost control, operational efficiencies, and digital innovation to offset rising costs and consumer pressures.

Financial highlights

• Total operating revenue reached $724.9m, up 7.7% from 1H 2023.

• Store EBITDA margin improved to 13.8% from 12.2% in 1H 2023.

• Operating cash flows (adjusted) increased to $45m from $35m; free cash flow rose to $13m from $2m.

• Net borrowings reduced to $252m, with Net Debt:EBITDA improving to 1.9x from 2.4x.

• Net tangible assets per share rose to $0.40 from $0.03 in the prior period.

Outlook and guidance

• Margin recovery initiatives from 2H 2023 are expected to deliver steady improvements over the next 18 months.

• Focus remains on margin and profit recovery, network expansion, and digital-first brand strategies.

• Value for money and innovation remain priorities to address ongoing consumer cost-of-living pressures.

• Targeting $2 billion in Group store sales in the medium term.