Alsea reports a 41.7% increase in net sales and 53.5% in EBITDA during full year 2015
- Growth of 65.5% in net income in the fourth quarter, resulting in earnings per share of 1.17 pesos
- 2,954 total units in the portfolio, which includes 170 additional units compared with the prior year
Mexico, D.F., February 11, 2015— Alsea, S.A.B. de C.V. (BMV: ALSEA*), the leading Quick Service Restaurant (QSR), Coffee Shop, Casual Dining and Family Restaurant operator in Latin America and Spain, released its results for the fourth quarter and full year 2015. This information is presented in nominal terms pursuant to International Financial Reporting Standards (IFRS).
Alberto Torrado, Chief Executive Officer of Alsea, said:“For Alsea, 2015 was a positive year in which we continued consolidating our presence in the markets where we operate, improving the performance of our businesses, and enjoying a favorable consumer environment, which helped us improve the Company’s performance, exceeding even our own expectations.
Our innovative DNA drives us to continue developing different projects so that we will be in the vanguard, not only in terms of technology, but also in our offer of products and services. A clear example of this is the launch of mobile applications for Domino’s Pizza and Burger King, as is our multi-brand “Wow Rewards” loyalty program, with which we strive to be closer to our clients and to establish a new communication strategy.”
He added: “Looking towards next year, we will keep working to continue increasing our profitability, and we will focus our efforts on meeting the challenge to continue our pace of growth so that we will achieve the five-year goals that we presented last November during Alsea’s first Investors and Analysts Day.”
CONSOLIDATED RESULTS FOR FULL YEAR 2015
The following table shows a condensed Income Statement in millions of pesos (except EPS). The margin for each item represents net sales, as well as the percentage change for the year ended December 31, 2015, in comparison with the same period of 2014:
| 2015 | % Margin | 2014 | % Margin | % Change | |
| Net Sales | $32,288 | 100.0% | $22,787 | 100.0% | 41.7% |
| EBITDA(1) | 4,302 | 13.3% | 2,802 | 12.3% | 53.5% |
| Net Income | $1,033 | 3.2% | $624 | 2.7% | 65.5% |
| EPS(2) | 1.171 | N.A. | 0.847 | N.A. | 38.2% |
(1) EBITDA is defined as operating income before depreciation and amortization.
(2) EPS is earnings per share for the last 12 months.
SALES
Net sales increased 41.7% to 32,288 million pesos in 2015, compared to 22,787 million pesos during the prior year. This increase was mainly due to the growth of 10.4% in same-store sales, revenues from the distribution and production segment, and to the increase of 122 corporate units, for a total of 2,283 corporate stores at the end of December 2015, which is growth of 5.6% over the same period of the prior year. This increase in sales was partially offset by the negative effect of inclusion of one additional week of operations in the prior year.
EBITDA
As a result of the 42.7% growth in gross income and the 40.3% increase in operating expenses (excluding depreciation and amortization), EBITDA rose 53.5% to 4,302 million pesos at the close of 2015, compared to 2,802 million pesos in the same period of the prior year. The 1.5-billion peso increase in EBITDA is mainly attributable to same-store sales growth, operating efficiencies, and the increase in the number of units and the positive contribution from incorporating the brands in Grupo Zena in Spain into our portfolio, as well as the Vips and El Portón brands in Mexico.
NET INCOME
Net income in the year increased 409 million pesos over the same period in the prior year, closing at 1,033 million pesos, compared with 624 million pesos in the prior year, mainly due to the 885-million peso increase in operating income. This variation was partially offset by the increase of 365 million pesos in the all-in cost of financing, as a consequence of the negative variation attributable to the exchange-rate result for the period.
Earnings per share (“EPS”)(2)for the 12 months ended December 31, 2015, increased to 1.171 pesos, compared with 0.847 pesos for the 12 months ended December 31, 2014.
CONSOLIDATED RESULTS FOR THE FOURTH QUARTER OF 2015
- Increase of 10.4% in Same-Store Sales in the fourth quarter
- Increase of 30.8% in EBITDA in the fourth quarter, reaching a 15.3% margin
- Growth of 74.3% in net income in the fourth quarter, resulting in earnings per share of 1.17 pesos
The following table shows a condensed Income Statement in millions of pesos (except EPS). The margin for each item represents net sales and the percentage change for the quarter ended December 31, 2015, in comparison with the same period of 2014:
| 4Q 15 | % Margin | 4Q 14 | % Margin | % Change | |
| Net Sales | $8,958 | 100.0% | $7,904 | 100.0% | 13.3% |
| EBITDA(1) | 1,367 | 15.3% | 1,045 | 13.2% | 30.8% |
| Net Income | $497 | 5.5% | $285 | 3.6% | 74.3% |
| EPS(2) | 1.171 | N.A. | 0.847 | N.A. | 38.2% |
(1) EBITDA is defined as operating income before depreciation and amortization.
(2) EPS is earnings per share for the last 12 months.
SALES
Net sales increased 13.3% to 8,958 million pesos in the fourth quarter of 2015, in comparison with 7,904 million pesos in the prior year. This increase was due mainly to the 10.4% increase in same-store sales, revenues from the distribution and production segment, and the addition of 122 corporate units, for a total of 2,283 corporate units at the end of December 2015, which is growth of 5.6% over the same period of the prior year. The increase in sales was partially offset by the negative effect of including an additional week of operations in the prior year.
EBITDA
As a result of the 13.4% growth in gross income and the 9.3% increase in operating expenses (excluding depreciation and amortization), EBITDA rose 30.8% to 1,367 million pesos at the close of the fourth quarter of 2015, compared with the 1,045 million pesos in the same period of the prior year. The increase in EBITDA of 322 million pesos is mainly attributable to the growth in same-store sales and to an increase in the number of units. This increase was partially offset by the impact on results arising from depreciation of the Mexican peso against the dollar, the negative effect from inclusion of an additional week of operations in the previous year, and to a lesser degree to the devaluation of some currencies in Latin America. EBITDA margin increased 210 basis points as a percentage of sales, rising from 13.2% in the fourth quarter of 2014, to 15.3% in the same period of 2015.
NET INCOME
Net income in the quarter increased 212 million pesos over the same period in the prior year, closing at 497 million pesos, compared with 285 million pesos in the fourth quarter of 2014, mainly due to the 170-million peso increase in operating income, as well as to the 76-million pesos decrease in taxes on earnings. This variation was partially offset by the increase of 41 million pesos in the all-in result of financing, mainly as a result of the increase in net interest paid, and due to the negative variation attributable to the exchange rate result from the period, which was mainly generated by revaluation of the liability related to the call and put options of the remaining 28.24% of Grupo Zena, due to depreciation of the Mexican peso against the euro.
Earnings per share (“EPS”)(2) for the 12 months ended December 31, 2015, increased to 1.171 pesos, compared with 0.847 pesos for the 12 months ended December 31, 2014.