What:
Americana clarified that geopolitical tensions in the Middle East affected its operations in Q4.
Meanwhile, the company’s net profit attributable to shareholders increased during the previous fiscal year. This amounted to a 0.1% increase YoY, reaching USD 259.5 million.
So What:
Americana, the regional franchisee of several famous brands such as “KFC,” “Pizza Hut,” and “Hardee’s” in the Middle East, North Africa, and Kazakhstan, suffered from increased losses due to “excessive inflation” last year.
This amounted to a 190% increase, reaching USD 4.4 million. And, fluctuations in foreign currency exchange rates, especially in Egypt, cost the company USD 106 million.
The company anticipated the impact of its operations due to recent geopolitical developments in November, which comes amid escalating calls for boycotting American products in the region due to the Israeli war in Gaza that erupted in October of last year.
Some Context:
Americana recorded revenues of around USD 2.4 billion last year, growing by 1.5% YoY.
This was attributed to the opening of 300 new restaurants during that period.
The company allocated USD 167.9 million (equivalent to 0.7% of revenues) for total capital expenditures to open new restaurants.
This expansion raised the total number of its restaurants to 2,435 by the end of 2023.
Now What:
The board of directors announced dividends for 2023, totaling USD 130 million (USD 0.0154 per share), and special dividends to be distributed once, totaling USD 50 million (USD 0.0059 per share).
