Restaurant Brands New Zealand (RBD) H2 2024 earnings summary

Executive summary

• Group store sales reached NZ$1,393.6m in FY24, up 5.4% year-over-year, with total operating revenue at NZ$1,474.7m, and net profit after tax increasing 62.6% to NZ$26.5m.

• Growth was driven by higher store sales across all regions, despite cost pressures and impairment charges, particularly in California and Australia.

• Margin recovery programs and business improvement initiatives contributed to improved store EBITDA and operational resilience.

• The Group maintained compliance with all banking covenants and reported no material impact from climate-related risks or new tax legislation in 2024.

• Auditor issued an unqualified opinion, highlighting key audit matters: goodwill impairment (California), store asset impairment, and revenue recognition.

Financial highlights

• Store EBITDA rose 8.9% to NZ$194.3m, and operating profit increased to NZ$94m from NZ$78m in FY23.

• Net profit after tax was NZ$26.5m, up from NZ$16.3m; basic EPS increased to 21.26 cents.

• Free cash flow improved to NZ$50m from NZ$13m; net cash from operating activities was NZ$132.6m.

• Store impairment and closure costs totaled NZ$8.6m, partly offset by NZ$0.9m in insurance recoveries.

• Special dividend of 18 cents per share paid in December 2024.

Outlook and guidance

• New Zealand expected to continue growth with new store builds; Hawaii to maintain strong performance.

• Australia anticipated to recover in the second half of FY25 as inflationary pressures ease.

• California expected to recover through innovation, digital channel growth, and margin initiatives.

• No final dividend declared for FY24 to retain cash for growth and maintain funding flexibility.

• No profit guidance provided due to ongoing economic volatility; OECD Pillar Two tax rules expected to have no material effect.