Restaurant Brands New Zealand (ASX:RBD) has released its half-year results for the period ending 30 June 2024. The company reported record sales driven by product and menu innovation, digital channels, strategic pricing, and enhanced marketing. Despite adverse consumer pressures in California and Australia, the Group's strategic initiatives continue to drive strong performance, particularly in Hawaii and New Zealand. EBITDA improved on strong sales and cost control initiatives, while Group NPAT increased on the flow-through of EBITDA increase. The company's balance sheet remains healthy with Net debt:EBITDA reducing to 1.9x.
The strategic initiatives for margin improvement implemented in the second half of 2023 are providing gradual margin recovery across the Group. Despite inflationary pressures and staff shortages, the company has continued to deliver value for money, which remains key to maintaining customer loyalty and supporting brand health. The Group's sales growth continues, with gradual margin recovery at the Group level. The company also highlighted the impact of inflationary pressures on consumer spending, particularly in Australia and California, and indicated that margin recovery initiatives implemented in 2H 2023 will continue to deliver steady improvements over the next 18 months.
Restaurant Brands New Zealand (ASX:RBD) has reported record sales and margin improvement in the first half of 2024, driven by strategic initiatives and strong performance in Hawaii and New Zealand. Despite adverse consumer pressures in California and Australia, the company's focus on product and menu innovation, digital channels, strategic pricing, and enhanced marketing has contributed to the record sales. The company's balance sheet remains healthy with Net debt:EBITDA reducing to 1.9x. Looking ahead, the company indicated that there are indications of inflationary headwinds lessening, but near-term costs such as labour, fuel, electricity, and interest rates remain elevated. The company will continue its margin recovery initiatives to deliver steady improvements over the next 18 months, while innovating to meet changing market needs amidst ongoing cost-of-living pressures for consumers across all markets.