July 28, 2021 | 5:04 pm
Alsea is about to turn the page on the pandemic. The owner of Starbucks and Domino’s Pizza more than doubled its sales by growing 140% to 12,477 million pesos in the second quarter of the year, compared to the 5,198 million obtained in the same period of 2020.
Regarding its operating cash flow (EBITDA, for its acronym in English), it returned to positive territory and ended the period at 2,848 million pesos, compared to the negative cash flow of 903 million pesos a year ago.
We report positive results driven mainly by the gradual elimination of sanitary restrictions and social distancing, as well as the success of various business strategies in both the restaurant experience and home delivery.
Alberto Torrado, CEO of Alsea said in his quarterly report.
The restaurant operator’s net profit closed the three months ended in June at 57 million pesos, compared to a loss of 2.982 million reported in the second quarter of 2020.
The increase was due to higher operating income as a percentage of net sales and lower operating expenses.
Of its portfolio of restaurants, the leading brands in sales were: Domino’s Pizza, Starbucks and Burger King, for having a focus on fast food and take-out, as well as home delivery.
In Mexico alone, sales of café de la sirena grew 14.1% in the quarter.
“Food delivery at home is consolidated as a relevant sales channel (…) during the second quarter we achieved a 34% growth in sales through delivery compared to the same period in 2020,” according to its latest status financial.
A financial reason to highlight is its leverage, which closed June at 4.9 times its net debt / EBITDA, compared to 6.3 times a year ago. The indicator is essential because it measures the capacity to generate cash flow against its net debt.
Alsea expects to return to healthier leverage in 2022
It should be remembered that Alsea achieved an extension of its business agreements in 2020 – the highest point of the pandemic – to temporarily change the conditions of credit agreements with banks until June 2022 and thus have a better financial position in the most important crisis in its history.