Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zamp SA (BSP:ZAMP3, Financial) achieved a record net operational revenue of BRL1.12 billion, marking an 18% growth compared to the same period last year.
- The company reported significant same-store sales growth of 16% for Burger King and 12% for Popeyes, contributing to a consolidated growth of 16% for the quarter.
- Digital sales accounted for 52% of total revenue, with a 38% increase from the previous year, highlighting the company's successful digital transformation.
- Zamp SA expanded its market presence by integrating iconic brands like Starbucks and Subway, increasing its market size by 2.6 times.
- The company successfully raised BRL450 million in capital, strengthening its financial position and investor confidence.
Negative Points
- The cost of merchandise sales increased slightly, representing 34.7% of the quarter, due to investments in commercial strategy.
- Labor expenses grew, impacting operational leverage despite a reduction in fixed costs.
- The company closed two Burger King franchise operations, indicating challenges in optimizing its portfolio.
- There was an increase in SG&A expenses due to one-off costs related to recent acquisitions.
- Despite the positive growth, the company is still in the early stages of integrating new brands, which may pose operational challenges.
Q & A Highlights
Q: Can you provide more details on the performance and profitability of the new brands, Starbucks and Subway, and discuss the traffic and pricing dynamics?
A: Paulo Sergio de Camargo, CEO, explained that the new brands have significant potential, with Subway having 1,600 franchise stores generating BRL1.7 billion in revenue in 2023. Starbucks, with 490 stores, had a top-line performance of approximately BRL450 million. Traffic was a major growth driver for Burger King, contributing 75% to same-store sales, while Popeyes saw growth through average ticket increases. The company is leveraging digital channels and loyalty programs to enhance customer engagement and sales.
Q: What are the strategic priorities for capital allocation and growth, considering recent acquisitions and market opportunities?
A: Paulo Sergio de Camargo, CEO, stated that the focus is on integrating new brands and optimizing existing operations. While growth through new store openings, particularly for Burger King, is planned, the company is still evaluating capital allocation strategies. Mergers and acquisitions are not a short-term priority, as the current focus is on maximizing opportunities within Brazil's extensive market.
Q: How does Zamp plan to maintain operational excellence and customer experience across its brands?
A: The company is committed to enhancing customer interactions through modernized stores, improved training programs, and robust operational processes. The integration of new brands will preserve their unique identities while leveraging Zamp's synergies and operational efficiencies to deliver consistent brand promises.
Q: What are the expected synergies from the integration of Starbucks and Subway into Zamp's portfolio?
A: Gabriel Magalhaes da Rocha Guimaraes, CFO, highlighted that the integration aims to capitalize on economies of scale and operational synergies. The focus is on building a strong organizational structure to support consistent execution and leveraging Zamp's expertise to enhance brand performance and growth potential.
Q: What is the outlook for digital sales and the role of technology in Zamp's growth strategy?
A: Digital sales represented 52% of total revenue, with a 38% growth year-over-year. The company is investing in digital channels like delivery and self-service kiosks to improve customer experience and operational efficiency. The loyalty program, with 19 million registered users, is a key component in driving personalized marketing and increasing customer engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
