TH International (THCH) Q4 23/24 earnings summary

Executive summary

• Achieved 76 net new store openings in Q4 2024, reaching 1,022 system-wide stores at year-end, with a focus on sub-franchise development.

• Registered loyalty club members grew 29.7% year-over-year to 24.0 million by year-end 2024.

• Marked significant operational improvements, including a 3.9 percentage point increase in company owned and operated store contribution margin in Q4.

• Celebrated the opening of the 1,000th Tims China shop and introduced new product offerings and marketing campaigns.

Financial highlights

• Q4 2024 total revenues were RMB332.6 million, down 12.0% year-over-year; full-year revenues were RMB1,391.2 million, down 10.8%.

• System sales in Q4 were RMB345.7 million, a 7.9% decrease year-over-year.

• Company owned and operated store contribution was RMB13.0 million in Q4, up 353.1% year-over-year; margin improved to 4.8%.

• Adjusted corporate EBITDA loss in Q4 was RMB49.4 million, an improvement from RMB56.7 million loss in Q4 2023; margin improved to -14.9%.

• Net loss for Q4 was RMB132.4 million, significantly reduced from RMB311.2 million in Q4 2023; adjusted net loss was RMB98.0 million.

• Basic and diluted net loss per share was RMB4.05 in Q4, improved from RMB9.71 year-over-year; adjusted net loss per share was RMB2.99.

Outlook and guidance

• Management targets full-year corporate EBITDA breakeven, focusing on profitable growth, supply chain enhancements, and sub-franchise expansion.

• Plans to further optimize store unit economics and accelerate sub-franchising.