Americana reports double-digit drop in Q1 profits  

MENA – Americana, the leading quick-service restaurant operator in the Mena region, has disclosed a significant decline in its first-quarter net profit and revenue, attributing the downturn to ongoing geopolitical tensions and a seasonal sales slump linked to the Ramadan period. 

According to the company’s financial statement, net income attributable to the parent company’s shareholders plummeted by 51.8 percent annually to US$28 million. The decline in profits was further exacerbated by higher depreciation charges and rent expenses due to new store openings from January to March. 

Revenue also experienced a sharp downturn at US$493.5 million, down 16.3 percent year-on-year in the last quarter. Americana cited lower like-for-like sales driven by geopolitical tensions in the region and the seasonal effect of Ramadan as primary factors contributing to the revenue decline. 

Nevertheless, the company remains steadfast in its commitment to navigating the current economic challenges while pursuing its expansion strategy. Americana aims to open 200 to 225 new stores this year, focusing on markets less impacted by the current regional macro-environment. 

“We anticipate a lesser impact of Ramadan on sales compared to the second quarter of last year,” Americana stated, indicating its proactive measures to mitigate the effects of seasonal fluctuations on revenue. 

To drive revenue recovery, Americana plans to implement initiatives such as smart pricing, targeting, promotion, and marketing, focusing on enhancing value, craving, and familiarity among consumers. 

Americana, operating in 12 countries across the region, North Africa, and Kazakhstan, boasts a diverse portfolio of renowned international food and beverage brands, including KFC, Pizza Hut, Hardee’s, Krispy Kreme, and Costa Coffee. 

Having raised US$1.8 billion from its initial public offering in November 2022, Americana made history as the first company to be dually listed on Saudi Arabia’s Tadawul stock exchange and the UAE’s Abu Dhabi Securities Exchange, the Arab world’s two largest stock markets. 

Despite the challenging economic climate, Americana reported optimized use of raw materials and strategic procurement, resulting in lower inventory costs during the first three months of the year. 

With 37 new stores opened in the March quarter, Americana’s portfolio now stands at 2,456 restaurants, with additional establishments under construction as of March 31. 

Last month, the company approved the distribution of total dividends of US$179.4 million, comprising an ordinary dividend of US$129.7 million and an additional one-time special dividend of US$49.7 million to its shareholders. 

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