Q2 2026 Amrest Holdings SE Earnings Call Transcript
Key Points
- Amrest Holdings SE (FRA:1QT) reported a significant improvement in free cash flow, turning positive at EUR25.6 million in H1 2026 from negative EUR26.2 million in H1 2025, a year-on-year improvement of almost EUR52 million.
- The company successfully renegotiated its syndicated financial agreement, increasing its revolving credit facility to EUR100 million, extending maturity to 2031, and reducing interest margins, which materially enhances financial flexibility.
- Amrest Holdings SE (FRA:1QT) is strategically expanding its brand portfolio by launching Taco Bell in Poland, its largest market, leveraging existing infrastructure to drive future growth with a disciplined, return-focused approach.
- Excluding the underperforming Czechia market and divestments, the company's core platforms remain healthy, with revenue increasing approximately 2% and EBITDA margin improving by 0.4 percentage points to 14.9% in H1 2026.
- The company is successfully reducing investment intensity, with CapEx as a percentage of sales declining from almost 10% to 5.3%, while maintaining a stable trajectory of new restaurant openings, indicating a shift towards more efficient capital allocation.
- Amrest Holdings SE (FRA:1QT) revised its 2026 outlook downward, now expecting only slightly positive revenue and profitability growth instead of the previously anticipated single-digit growth, due to a slower recovery in consumer traffic.
- The company's overall profitability declined, with EBITDA margin falling to 14.4% in H1 2026 from 15% in the prior year, driven by weaker operating leverage in key markets.
- Czechia remains a significant problem area, with sales down 16% in Q2 2026 due to ongoing negative publicity, and management could not provide a clear timeline for recovery.
- Same-store sales remained below last year, with the index at 98 in Q2 2026, indicating that consumer demand is still cautious and traffic is under pressure across several markets.
- The company's performance in China is weakening, with EBITDA margin declining from 22.8% to 19.8% in Q2 2026 due to a challenging consumer environment and subdued demand, despite revenue remaining broadly stable.
Hello, and welcome to today's AmRest first half 2026 results call. My name is Seb, and I'll be the operator for your call today. (Operator Instructions)
I will now hand you over to Lukasz Wachelko from Wood and Co to begin. Please go ahead when you are ready.
Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. I'm presenting Wood & Company. And I have, again, the pleasure of moderating the quarterly call with AmRest. The company is represented by CFO, Mr. Eduardo Zamarripa; and IR and Strategic Planning Director; Mr. Santiago Camarero Aguilera. With no further ado, Eduardo, the mic is yours.
Thank you, Lukasz. Good afternoon, everyone, and thank you for joining. We appreciate your time and your continued interest in AmRest. I'm Eduardo Zamarripa, and I'm joined today by Santiago Camarero, our Head of Strategy and Investor Relations.
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