INTERNATIONAL MEAL COMPANY ALIMENTAÇÃO S.A. International Meal
Company
Alimentação S.A.
Individual and consolidated interim financial information in
March 31, 2022 with independent auditor's report
KPDS 1045434
International Meal Company Alimentação S.A. Individual and consolidated interim financial information in March 31, 2022
Contents
Message from Manage | 3 |
Report on review of quarterly financial information - ITR | 19 |
Balance sheets | 21 |
Statements of profit or loss | 23 |
Statements of comprehensive income (loss) | 24 |
Statements of changes in equity | 25 |
Statements of cash flows | 26 |
Statements of value added | 27 |
Notes to the interim financial information | 28 |
2
1Q22 RESULTS
IMC records revenue growth above 50% and continues to
advance in its transformation agenda
São Paulo, May, 12, 2022 - São Paulo -International Meal Company Alimentação S.A. ("IMC") -B3: MEAL3, one of the largest multi-brand companies in the Latin American food retail industry, announces its results for the first quarter of 2022 (1Q22). Unless otherwise indicated, the information herein is presented in a consolidated manner, in millions of Brazilian reais (R$). Additionally, said information was prepared in accordance with the accounting principles adopted in CPC 21 (R1) and the International Financial Reporting Standards (IAS 34).
Quarterly Highlights
- Total system Sales1 of R$ 674.1 MM in 1Q22, 48.0% higher than 1Q21 and 24.2% over 1Q20
- Net Revenue of R$487.3 MM, up by 51.4% over 1Q21, and by 32.9% over 1Q20
- Consolidated Same-StoreSales² (SSS) of 38.6% over 1Q21, and 16.2% higher than in 1Q20
- Total of 561 stores, a net addition of 62 units vs. 1Q21, focused on strategic brands and long-term view
- Adjusted EBITDA of R$38.8 MM, up by 291% over 1Q21, with a margin of 8.0%
- Net Debt of R$289.9 MM and net debt-to-LTM EBITDA ratio of 2.4x, below required covenants (3.0x)
PORTUGUESE CONFERENCE CALL WITH SIMULTANEOUS
TRANSLATION
05/13/2022 12:00 pm (US EDT)/ 01:00h pm (BRT)
Webcast: click here
Phone: US: +1 844 204 8942 BR: +55 (11) 4090 1621
INVESTORS RELATIONS:
Alexandre Santoro - CEO
Rafael Bossolani - CFO and DRI
Gustavo Fornazieri - Investors Relations
E-mail: ri@internationalmealcompany.com
Site:http://ri.internationalmealcompany.com
MEDIA RELATIONS | FSB Comunicação
Isabel Kopschitz and Letícia Volponi
1- Own store sales including franchise sales | 2- in reais | 3 |
MESSAGE FROM MANAGEMENT
After a year of many lessons learned, in which we made important progress in our operations, organized our portfolio, mapped synergies, and created a technology platform with more solid data for the business, we are thrilled and confident about 2022, certain that we have already built the foundations for our growth.
The first quarter results already reflect a much more positive trajectory for our brands and operations, with recovery in all segments in Brazil and consistent evolution in the results of international operations. We ended the quarter with an Adjusted EBITDA of R$39 million, an expansion of 291% in relation to the same period of the previous year, growth in Net Revenue of 51% and a with 561 stores in our system.
We keep our transformation agenda with clear priorities and ambitious goals for our business, seeking to modernize the company, elevate the experience of our consumers and leverage profitability for all our stakeholders.
Digital sales continued on the growth path even with the resumption of flow in our physical stores. Delivery sales reached R$72 million vs. R$86 million in 4Q21, with emphasis on the Pizza Hut and KFC brands in which the share of sales passing through these was approximately 30% of billing. We ended the quarter with 1 million customers registered in our CRM and growth of more than 80% in the number of sales identified against 4Q21.
In our operational efficiency pillar, we have been working to extract synergies between brands and improvement in the profitability of operations. We have seen the profitability of our stores increase in all marks. Our 4‐Wall¹ Margin expanded 2.7 p.p. vs. the same period of the previous year. The Central Kitchen recorded during the quarter a production 32% above 2021 and our satisfaction indicators (NPS) remained at the same levels as in 4Q21.
We opened 11 new units this quarter, continuing our expansion plan sustainable, valuing the balance between growth and profitability. Still in line with our strategy to optimize value, we closed 15 low‐performing units in the quarter. Additionally we increased the share of owned stores in our portfolio to 55%.
Regarding Financial Discipline, the generation of operational cash was R$66 million, with financial leverage of 2.4x, a safe margin compared to the 3.0x defined by the covenants. We closed the quarter with a cash position of R$412 million and net debt of R$299 million. The balance sheet accounts also improved, with inventory and accounts receivable moving up by R$13 million. Discounting the supplier line, cash increased by R$4 million.
We remain focused on the progress of our strategic agenda and the profitability of our operation. It is worth mentioning that in April our brands registered SSS above 50% in the compared to April 2021. Additionally, in agreement with KFC International, we suspended arbitration in search of a solution to the conflict in question.
We are aware of our challenge and that we have a long way to go, but we remain confident that we will get there with the strength of the brands in our portfolio, with a focused team and a culture of ownership and result‐ oriented.
Management
1- Excludes administrative and indirect expenses
4
CONSOLIDATED HIGHLIGHTS
(in R$ million) | 1Q22 | 1Q21 | YoY |
Stores | 561 | 499 | 62 |
SSS 1year basis | 38.6% | ‐9.3% | +4794bps |
System Total Sales | 674.1 | 455.3 | 48.0% |
Net Revenues | 487.3 | 321.9 | 51.4% |
Same Store Sales | 51.4% | 32.9% | +1848bps |
Gross Profit | 128.4 | 74.5 | 72.3% |
Gross Profit | 26.4% | 23.2% | +320bps |
Adjusted EBITDA | 38.8 | 9.9 | 291.3% |
Adjusted EBITDA Margin | 8.0% | 3.1% | +489bps |
Operating Cash Flow | 23.2 | 9.7 | 139.3% |
Net Debt/EBITDA¹ | 2.4X | ‐ | ‐ |
¹ Ex‐IFRS | Covenant Methodology
SALES HIGHLIGHTS
(in R$ million) | 1Q22 | 1Q21 | YoY |
Net Revenues | 487.3 | 321.9 | 51.4% |
Brazil | 304.0 | 201.0 | 51.2% |
Frango Assado | 163.0 | 119.0 | 36.9% |
Airports | 29.9 | 18.3 | 63.5% |
PH, KFC and Others | 111.1 | 63.7 | 74.5% |
USA | 134.0 | 91.5 | 46.4% |
Caribbean | 49.2 | 29.3 | 68.0% |
OPERATING RESULTS ‐EBITDA
(in R$ million) | 1Q22 | 1Q21 | YoY |
Adjusted EBITDA | 38.8 | 9.9 | 291.3% |
Brazil | 4.8 | (7.2) | na |
Frango Assado | 14.1 | 8.3 | 69.9% |
Airports | 3.7 | 2.8 | 32.9% |
PH, KFC and Others | 1.7 | (0.7) | na |
G&A | (20.0) | (19.2) | 4.2% |
Others | 5.3 | 1.7 | 222.8% |
USA | 16.8 | 10.2 | 64.2% |
Caribbean | 17.3 | 6.9 | 149.8% |
5
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IMC - International Meal Company Alimentação SA published this content on 13 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 June 2022 14:52:02 UTC.
