Q4 2024 MTY Food Group Inc Earnings Call Transcript
Key Points
- MTY Food Group Inc (MTYFF) achieved a net positive location growth for the first time in 10 years, with a net addition of 13 restaurants in the fourth quarter.
- The company returned a record amount to shareholders through share buybacks and dividend payments totaling over $68.6 million.
- MTY Food Group Inc (MTYFF) paid back over $79.5 million of its long-term debt, strengthening its balance sheet.
- Digital sales grew by 9% year-over-year, reaching $1.1 billion, and now represent 20% of total sales, indicating a significant growth opportunity.
- The franchising segment showed strong performance with margins increasing from 47% to 51%, contributing to a 7.9% increase in normalized adjusted EBITDA year-over-year.
- Normalized adjusted EBITDA decreased by 1.6% in the fourth quarter compared to the previous year.
- The corporate restaurant segment faced challenges, with a 39% decrease in EBITDA due to margin pressures and sales declines in certain concepts.
- A non-cash impairment charge of $64.6 million was recorded due to underperformance of certain recently acquired corporate locations and intangible assets.
- The company reported a net loss attributable to owners of $55.3 million in the fourth quarter, primarily due to impairment charges and foreign exchange variations.
- Retail distribution and manufacturing segments struggled, with a 12% decrease in normalized adjusted EBITDA compared to the prior year, as customers shifted to discount brands.
Good day, and welcome to the MTY Food Group fiscal 2024 fourth quarter results. (Operator Instructions) Please note this event is being recorded.
I would like to turn the conference over to Eric Lefebvre, CEO of MTY Food Group. Please go ahead.
Thank you. Good morning, everyone. Thank you for joining us for MTY's fourth quarter conference call for fiscal 2024. The press release and the MD&A with complete financial statements and related notes were issued earlier this morning and are available on our website as well as on SEDAR.
During the call, we will be referring to forward-looking statements and to certain numbers that are non-IFRS measures. You can refer to our MD&A for more details. I also remind you that all figures presented on today's call are in Canadian dollars, unless otherwise stated.
MTY delivered a remarkable financial performance once again in fiscal 2024. Despite a more challenging macroeconomic environment, our free cash flows net of rent
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