• Total Revenue Growth: 21% increase, reaching BRL1.3 billion.
• Annual Revenue: BRL4.6 billion, a 19% growth compared to 2023.
• Same-Store Sales Growth: Burger King at 13.1%, Popeyes at 12.8%.
• New Acquisitions: Subway and Starbucks, adding over 1,600 operations.
• Subway Same-Store Sales: 10.4% growth.
• Starbucks Same-Store Sales: Improved by 20 percentage points post-acquisition.
• Digital Sales: Over 50% of total sales, a 30% increase from 2023.
• EBITDA (excluding IFRS): 15% growth compared to last year.
• Store Expansion: 29 new Burger King locations, 2 new Popeyes franchises.
• Total Store Count: Increased to 2,708 units, up from 1,039 in 2023.
• Net Revenue: BRL4.6 billion, with a net revenue increase to BRL3.8 billion in 2023.
• Operational Cash Flow: Reduced by 24.5% in 2024.
• CapEx: 9% decrease compared to 2023.
• Leverage: Net EBITDA ratio and leverage remain controlled.

• Warning! GuruFocus has detected 4 Warning Signs with BSP:ZAMP3.

Release Date: March 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Zamp SA (BSP:ZAMP3) reported a strong commercial performance with a 21% growth in total revenue, driven by Burger King and Popeyes.
• The company achieved a significant milestone by acquiring operations of Subway and Starbucks, adding over 1,600 new operations to its system.
• Digital sales, including totems, apps, and delivery, now represent over 50% of the company's sales, showing a growth of over 30% compared to 2023.
• Zamp SA's loyalty program has reached 19 million registered Brazilians, enhancing customer engagement and sales.
• The company has a well-structured debt profile, providing comfort for future growth and leveraging opportunities.

Negative Points

• Zamp SA experienced a 34% decline in EBITDA, primarily due to a one-off effect and increased COGS.
• The company faced challenges with protein costs, impacting gross margins and requiring continuous adjustments.
• Starbucks operations showed a negative same-store sales performance of minus 4.5% from October to December.
• The company had to make provisions for nearly 3% of its assets, mainly due to underperforming Burger King operations.
• Operational cash flow reduced by 24.5% due to increased working capital needs and acquisitions.

Q & A Highlights

Q: Can you elaborate on the same-store sales and gross margin, particularly regarding the impact of protein costs and market elasticity? A: Gabriel da Rocha Guimaraes, CFO and Investor Relations VP, explained that same-store sales were primarily driven by traffic, with 90% of the effect coming from it. The protein costs, particularly beef, have seen significant volatility, impacting margins. The company is working on recalibrating its menu to accommodate these costs while leveraging data from its loyalty program to optimize discounts and promotions. The focus for 2025 is to find a balance between cost evolution and operational efficiency.

Q: Could you provide details on the write-off and impairment mentioned in the report? A: Gabriel clarified that the write-off provisions are mainly related to 20-25 Burger King operations that are part of an optimization plan. These stores were affected by changes in consumer behavior and the pandemic, making them less viable. The provisions also include some technology and maintenance-related items.

Q: How is Zamp managing the integration of new brands like Subway and Starbucks? A: Gabriel highlighted that the integration process is ongoing, with a focus on operational stability and synergy realization. The company aims to improve organizational design to enhance speed and flexibility in execution. Each brand has a dedicated president to ensure focused management.

Q: What are the strategic priorities for Zamp in 2025? A: The priorities include improving gross margins, enhancing customer experience through digital and physical channels, and completing the integration of Subway and Starbucks. The company is also focused on expanding its brand presence across Brazil, leveraging its diverse portfolio to capture growth opportunities.

Q: How is Zamp addressing the challenges in the coffee and poultry markets for Starbucks and Subway? A: Gabriel noted that while coffee presents challenges for Starbucks, the company is implementing strategies to improve margins. For Subway, the poultry market is more favorable, and the company is leveraging this to enhance its cost structure. The diversification of brands within Zamp helps balance these market challenges.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.