Th International Limited ( (THCH) ) has released its Q2 earnings. Here is a breakdown of the information Th International Limited presented to its investors.
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TH International Limited, operating under the brand Tims China, is the exclusive franchisee of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company is known for its focus on local relevance, innovation, and convenience in the food and beverage industry.
In the second quarter of 2025, Tims China reported a slight increase in system sales by 1.4% year-over-year, reaching RMB409.5 million. However, total revenues saw a decline of 4.9% compared to the same period in 2024. Despite the revenue drop, the company achieved a positive adjusted corporate EBITDA of RMB2.2 million.
Key financial metrics highlighted include a 22.4% growth in registered loyalty club members, reaching 26.2 million, and an 8.6% increase in food revenue. The company also reported a decrease in company-owned and operated store contribution margin to 9.6% from 10.1% the previous year. The number of franchised stores increased significantly, contributing to a 50.7% rise in other revenues.
Despite the challenges, Tims China managed to reduce its adjusted net loss by 16.2% year-over-year. The company continued to optimize costs, with decreases in food and packaging costs, payroll, and other operating expenses. However, the net loss from continuing operations stood at RMB75.9 million.
Looking ahead, Tims China remains committed to its ‘Coffee + Freshly Prepared Food’ strategy, focusing on top-line growth and improving store unit economics. The management aims to sustain long-term profitable growth through strategic initiatives and operational efficiencies.