Food & Drink

KFC Mena franchisee’s H1 profit rises 19% to $145m

By Pramod Kumar

August 3, 2023, 6:00 AM

Americana announced a dividend of $130m and an additional one-time special dividend of $50m, subject to shareholders' approval

The Middle East and North Africa (Mena) franchisee of fast-food restaurants KFC and Pizza Hut, has reported net profit of $144.8 million for the first half of 2023.

Americana Restaurants International Plc said this represented a yearly increase of 19.4 percent.

Revenue increased 7.8 percent to $1.24 billion in the first six months, compared to $1.15 billion a year ago. Adjusted Ebitda gained 7.7 percent year on year to $291.7 million.

Net profit for Q2 2023 reached $86.6 million, an increase of 16.7 percent. This was after adjusting for the one-off tax payment of $25.5 million to settle an indirect legacy tax charge in Egypt.

Second quarter revenue rose 13.5 percent year on year in Q2 2023, supported by the positive impact from fewer number of Ramadan days.

Americana’s year-on-year revenue growth was underpinned by a continued expansion across its operations in Mena and Kazakhstan.

The company, which is listed on the Abu Dhabi and Saudi stock exchanges, reported significant restaurant portfolio expansion, and increased like-for-like sales and operating efficiencies.

It opened 108 new stores during the first half of 2023, bringing its total count to 2,277 as of June 30, 2023.

Americana, which increased its inventory levels in 2022 to counteract global supply chain disruptions, successfully phased out the higher-cost inventory during H1 2023. The lower costs of key commodities will support the margin expansion in future periods.

Over the past 12 months, Americana added 262 new stores to its expanding regional footprint. A further 84 stores were under construction as of June 30, 2023, which will help the company reach its target of opening 250-260 new stores in 2023.

In Egypt, the company remains focused on optimising operations, enhancing franchisor support and driving further cost efficiencies as it navigates currency-related challenges.

The company is in a strong position to continue scaling its new brands, including further expansion of Pizza Hut and Peet’s Coffee in Saudi Arabia.