AmRest Holdings SE

Good afternoon everyone and welcome to the AMREST Q3 2025 results call. My name is Brika and I will be coordinating your call today. During the presentation you can register to ask a question by pressing star followed by the number one on your telephone keypad. If you change your mind please press star followed by two. And for those of you who have joined online you can register a written question in the Q&A box I would now like to hand you over to your host, Lucas Wachalko, to begin. So, please go ahead, Lucas.

Good afternoon, ladies and gentlemen. My name is Lukasz Wachalko. I am representing Wooden Company. And I have, again, the pleasure of moderating the call with management of Amres to present you the results of the third quarter of this year. The company is being represented by CFO, Mr. Eduardo Zamarripa, and IRN Strategy Director, Mr. Santiago Camarero Aguilera. Guys, the mic is yours.

Thank you, Lucas. Good afternoon, and thank you for joining us in today's third quarter 2025 AMBRIS result presentation. It is my pleasure to share with you an update of AMBRIS situation at the end of the quarter. During the third quarter of the year, despite ongoing trade tensions and geopolitical uncertainty, Both global and European economies showed resilience, though Europe's lacked the global average. Across Western Europe, activity stayed mute. Growth was modest, held by public investment and easier financial conditions, but weighted down by weak exports and cautious consumers' spending. Inflation moved closer to the ECB 2% target, allowing monetary policy to stabilize after an earlier rate cut. However, disposable income growth remain limited due to past fiscal tightening and high living costs, keeping consumers confident fragile. In Eastern Europe, growth slowed sharply versus the previous quarter. Fiscal consolidation, like BIT hikes and subsidy costs, hit household consumption, while inflation stayed above target in many countries, eroding real incomes. In the case of China, its economy held steady about 4.5% year-on-year growth rate, supported by a manufacturing rebound and targeted fiscal stimulus. Household spending improved slightly thanks to tax rebates and easier credit, but confidence remained soft. With that context, we'll now review our third quarter results, financial performance. an outlook before opening the floor for your questions. Please note that today's remarks may include forward-looking statements subject to risks and uncertainties. But let's start with today's presentation. If we go to slide two, please. As a reminder, Ambrose is a leading multi-brand restaurant operator in Europe. with 2,110 restaurants across 22 countries in Europe, the Middle East, and China. We are proud to operate some of the world's most iconic and reputable restaurant brands. Our portfolio combines global franchise brands, KFC, Starbucks, Pizza Hut, and Burger King, with proprietary concepts such as La Tagliatella, Sushi Shop, Blue Frog, and Bacoa. positioning our businesses across quick service, coffee, fast and casual dining. Every month, our restaurants welcome over 30 million guests, served by more than 44,000 AMRIS colleagues, scales that allow us to deliver consistent value and service across formats and geographies. If we move now to slide three, I'm going to try to summarize the most relevant financial KPIs and events for this quarter. First, we hit historic sales record of $660.5 million for a third quarter, with a 3.5% increase when excluding the impact of the asset disposed during the year. In this case, let me remind that we sold our equity stake in SEM business at the end of the first quarter. And as a consequence, we deconsolidated all the assets and liabilities associated to the business since then. The idea behind this transaction has been to internalize and optimize the value generated in the chain management and product quality assurance services. Second, Evita reached 111.2 million, which a solid margin of 16.8%. The operative profit reached 42.3 million euros with a 6.4% margin, while the net profit achieved at 15.8 million euros. Leverage stood at 2.1 times and the low end of our integral target range. Finally, during the quarter, we opened 16 new restaurants and renovated 46 units, continuing our commitment to growth and modernization. In the following slides, we will go into more depth and detail of these points, but let's start first with what we are doing in our different brands on slide four. The commercial position of our brands plays a crucial role in the value generation of Ambrose. Let me start with the KFC, La Tagliatella, and coffee brand in this slide four. At KFC, we continue to deliver bold, locally relevant experiences through dynamic campaigns and seasonal innovations. The California summer campaign brought vibrant offerings, complemented by a strong value proposition. We amplified engagement through the high-impact promotions, and for instance, our largest partnership of the year with the Eurobasket during the summer months. In addition, regional highlights included the Street Food Festival in Czechia and Hungary, introducing global flavors like Greek Sobolak and Korean Kaizinger These initiatives strengthened brand image, boosted basket value, and reinforced customer loyalty. At La Tagatella, we continue to push culinary boundaries, partnering with Michelin-starred chef Carlos Maldonado to elevate brand perception and attract new audiences. These bold collaborations fuse Italian tradition with Maldonado's advanced creativity, resulting in four exclusive dishes. The initiative delivered double-digit growth within our historical editions category, positioning Lata Glatelas as an innovative leader in the restaurant sector. At Starbucks, we continue to strengthen our coffee leadership while embracing evolving consumer trends. Core coffee growth accelerated with espresso based beverages reinforced by our back to Starbucks strategy centered on quality and tradition. Seasonal beverage launches continue to drive customer engagement while growing interest in wellness and personalization is reflections in the strong appeal of matcha beige offerings. Now, Let's continue with our brand in slide five. At Sushi Shop, following the strong momentum for our Ubix Cube collaboration during third quarter, we launched our annual summer receipts edition. The result resonated strongly with consumers, prompting us to extend the offer into the September to maximize engagement. At Blue Frog, we strengthened our bar identity and local relevance through three key initiatives. Refreshed drink menu, where we introduced higher quality creative options to elevate the all-day bar experience. Chinese Valentine's Day with a premium YU set and themed cocktails created a festive, romantic atmosphere. And third, our city-limited series, locally inspired dishes and cocktails, showcase authenticity and deepen the connection with regional audiences. At Pizza Hut, we strengthened innovation leadership through bold, consumer-focused initiatives. Globally, Pizza Hut introduced the Pizza Cheeseburger Ranch, a mash-up concept blending classic cheeseburger flavors with Pizza Hut signature pizza formats. This range targeted Gen Z and value-seeking consumers, supported by gaming and delivery partnership. These campaigns strengthened Pizza Hut's reputation for bold flavor innovation, resonating strongly with consumers. And finally, in third quarter, Burger King brought anime culture to life in Poland, Czechia, and Romania with a special Naruto theme activation. Restaurants offer exclusive meals paired with the collectible toys, turning BK into a destination for anime fans and driving engagement, brand affinity, and incremental sales. If we now move to slide six, please, core revenues and comparable basis grew by 3.5% year-on-year, underscoring the strength of our portfolio. In addition, we continue to see steady progress in the 12-month trading average sales per equity store, driven by an optimized channel mix, disciplined pricing strategies, and positive impact in recent renovations. These combinations of per-store products productivity and selective expansion reinforces our ability to consistently improve unit economics across the network. As a result, AMBRIS delivers resilient store-level performance that supports sustainable growth despite the temporary challenges faced in several markets. Moving to slide seven, please. In the third quarter of the year, digital orders reach 62% of total transactions, a clear testament of accelerating adoption and shifting consumer preferences. This transformation is powered by our omni-channel ecosystem, which integrates proprietary kiosks, mobile apps, web ordering, and third-party aggregators. By leveraging these platforms, we deliver personalized promotions, unmatched convenience, and a seamless experience across every touchpoint. Digital remains a core pillar of our growing strategy, driving both customers' engagement and operational efficiency. In summary, our robust digital adoption underscores two things, challenging consumers' behaviors and our commitment to innovation. That speed of service improves consistency and drives ticket growth. In short, digital continues to be a strategic lever for sustainable value creation. Now moving to slide eight. As we have covered in previous calls, our underlying restaurant growth is complemented by strategic adjustments to non-performing businesses made since 2022. which have led to the end of certain commercial agreements or disposable of some businesses during this period. These decisive moves are aimed to sharpening our capital allocation and focusing the portfolio on the most resilient and profitable formats, ensuring that our footprint is configured for sustainable long-term returns. Ambrose operates directly or via franchisees a portfolio of 2,110 restaurants across 22 countries and eight brands, following the opening of 16 new restaurants and the closure of 14 during the quarter. With this, Santi, if you can cover the main financial highlights, please.