AmRest Q1 profit below expectations

WSE-listed restaurant operator AmRest posted a PLN 20.6 million attributable net profit in Q1, way below consensus expectations for PLN 40.6 million, mostly due to increased costs. Revenues amounted to PLN 1.14 billion, in line with expectations and 33.7 percent y/y increase, in line with preliminary figures. Q1 sales were boosted by taking over Starbucks (May 2016) and KFC (March 2017) outlets in Germany, excluding these chains, revenues were up by 18.2 percent,” AmRest said. For the CEE region, sales were up by 16.1 percent y/y to PLN 562 million. Russian operations amounted to PLN 138 million revenue, up by 55.3 percent, while the Western Europe division revenue grew by 71.7 percent to PLN 351 million. Chinese market brought in PLN 60 million in revenue, up by 17.4 percent y/y. EBITDA for Q1 amounted to PLN 132 million, 13.7 percent y/y growth.