AmRest Holdings SE ((PL:EAT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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AmRest Holdings SE’s recent earnings call painted a picture of both stability and challenges. The company reported a stable financial performance with growth in key regions like Central and Eastern Europe, supported by strong digital engagement. However, there were significant concerns regarding challenges in Western Europe, particularly in France, and a decline in China sales. Additionally, delayed restaurant openings added to the uncertainties.
Revenue Growth and Stable EBITDA
In the first half of 2025, AmRest achieved revenues of EUR 1,262 million, marking a 2.5% increase year-over-year, or 3.9% excluding the deconsolidation impact from asset sales. Adjusted EBITDA remained stable at over EUR 196 million, indicating a solid financial foundation despite market challenges.
Improved EBIT Margin
AmRest reported an EBIT of EUR 47.5 million, which improved the EBIT margin to 3.8% from 1.9% in the first half of 2024. This improvement highlights the company’s effective cost management and operational efficiency.
Strong Performance in Central and Eastern Europe
Sales in Central and Eastern Europe grew by 8%, with a notable 10% increase in Poland. The region’s EBITDA was EUR 79 million with a margin of almost 20%, showcasing robust growth and profitability in these markets.
Digital Order Growth
Digital sales comprised 62% of total orders in the first half of the year, reflecting significant growth in digital engagement and customer convenience. This shift towards digital channels is a key driver of AmRest’s business strategy.
Challenges in Western Europe
Sales in Western Europe declined by almost 2% in the second quarter, with France experiencing a steep decline of 14%. EBITDA in the region decreased by 8%, highlighting the difficulties faced in these markets.
Struggles in China
Sales in China decreased by more than 9% in euro terms during the second quarter. The macroeconomic environment and global consumption decline contributed to this downturn, posing a challenge for AmRest in the Chinese market.
Delayed Restaurant Openings
Restaurant openings were behind schedule, with some planned for the fourth quarter potentially moving to the first half of 2026. This delay adds to the uncertainties surrounding the company’s expansion plans.
Forward-Looking Guidance
Looking forward, AmRest plans to protect value and convenience across its brands, scale digital engagement, maintain cost control, and prioritize high-return investments. The company aims to continue serving over 30 million guests monthly across its 2,103 restaurants in 22 countries, supported by a workforce of more than 45,000 colleagues. Strategic changes, such as internalizing supply chain management, are expected to simplify operations and capture efficiencies.
In summary, AmRest Holdings SE’s earnings call reflected a mix of stability and challenges. While the company showed strong performance in Central and Eastern Europe and digital engagement, it faced significant hurdles in Western Europe and China. The delayed restaurant openings further added to the uncertainties. Moving forward, AmRest’s strategic focus on digital engagement and operational efficiencies will be crucial in navigating these challenges.