Ibersol SGPS S A : Consolidated Report & Accounts 3rd Half 2022 – not audited (view report)

IBERSOL - SGPS, SA

Publicly Listed Company

Registered office: Praça do Bom Sucesso, 105/159, 9th floor, Porto

Share Capital Euros 46.000.000

Commercial Registry: Oporto under number 501669477

Fiscal number: 501669477

Consolidated Report & Accounts

9M 2022

(not audited)

• Consolidated Turnover of 398.6 million Euros

Increase of 65% over 9M of 2021

• Consolidated EBITDA reached 68.5 million Euros

Ebitda increased 27% over 9M of 2021

• Consolidated net profit of 14.6 million Euros

Increase of 172% when compared to the 9M of 2021

Consolidated Management Report

Activity

To allow comparison with other companies in the sector and previous financial periods, the Group uses operational performance indicators, as mentioned throughout this section, the definition and explanation of which can be consulted in the glossary.

After the beginning of the year, still marked by the Ómicron variant, which slowed down the pace of recovery from the effects of the Covid-19 pandemic, the outbreak of the military conflict in Ukraine and the worsening of global geopolitical tensions have challenged again the group portfolio brands.

This context of uncertainty and instability led to a disruption in supply chains, to the acceleration of the escalation of inflation in food products, energy and transport, with a consequent impact on Ibersol cost structure and a fall in consumer confidence.

Despite this demanding context, the group's portfolio once again showed a high capacity for resilience, recording a solid growth of 64.9% when compared to the same period in 2021, affected by the period of lockdown and restrictions on mobility, with a consolidated turnover in the first nine months of 2022 of EUR 398.6 million, which compares with EUR 241.7 million in the same period of the previous year.

The sales evolution compared to 2019 shows, in this third quarter, the maintenance of the good performance seen since the Easter period, to which the recovery of tourism with a sharp growth, greater mobility and increased private consumption, traditionally stronger in holiday seasons, contributed decisively.

In Portugal, after an early summer with a slight slowdown in the pace of growth, in the third quarter we achieved the best post-pandemic performance, largely surpassing the 2019 figures.

In Spain, there was a greater resistance in the pace of recovery of losses to levels identical to the same period in 2019, directly related to the evolution of traffic at the airports where we operate restaurants which, at the end of the quarter, were still around 12% below of verified to the same period in 2019.

Sales of restaurants located in Angola reflect the evolution in local currency, which does not include the gains arising from the appreciation against the EUR and USD.

In this context, the monthly sales evolution by segment, illustrates the different impacts of the restrictions that have been in the last two years, the respective comparative with the same period of 2019 and the pace of recovery achieved by business area.

The concessions and catering segment recorded the best performance since the beginning of the recovery from the impacts of the pandemic, in the aviation sector and in events in particular, having surpassed, in June and September, the sales recorded in the same period of 2019, as a result of the increase in traffic passengers at airports in parallel with the growth in consumption per client, and the upturn in hosting corporative and private events.

In Spain, where the group operates restaurants at six airports, passenger traffic has registered a gradual recovery since February, with losses in the 3rd quarter of 12%, when compared to 2019, with urban airports showing a slower pace of recovery. In Portugal, losses were just 1%, which reflects a faster recovery pace than in Spain, which is not unrelated to the lower dependence on passengers from markets still affected by restrictions caused by Covid-19, namely the Asian ones. It should also be noted that since the beginning of the second quarter, some of the airports located on the islands have had higher monthly traffic than in the same period in 2019, benefiting from recognition as safe and unrestricted destinations by tourists from the domestic market, as well as by northern European countries.

Likewise, the restaurants with dine-in service, traditionally associated with leisure moments, reached pre-pandemic sales levels in the summer months, registering a slight slowdown at the end of the summer season.

The counter segment once again showed a good performance, with strong growth compared to the same period of 2021, (a growth of 48%), as well as a high pace of recovery compared to 2019 of 36%, to which contributed three factors:

1. the impact of the expansion which occurred in 2020 and 2021, namely with the Burger King, KFC and Taco Bell brands;
2. the generalized extension to a significant number of restaurants with delivery and take- away services;
3. the positive performance of restaurants with drive-thru services (operated by Burger King and KFC brands) which helped overcome the losses registered in the eat-in services.

Delivery sales, which partially offset the impact of the operation's limitations in the restaurant and counter segments in the lockdown period, with the gradual return to normality tends to reduce its weight to identical pre-pandemic levels, representing 20% of sales in the third quarter - excluding sales in the concessions and catering segment - compared to 18.7% in the first quarter of 2020, the previously period to the impact of the pandemic.

With the gradual resumption of normality in consumer habits, there is a reduction in the relative weight of sales in the drive and delivery channels, as opposed to an increase in the weight of sales in restaurants, namely those located in shopping centers, which returned in the quarter to a similar pre-pandemic weight.