The following is a summary of the MTY Food Group Inc. (MTYFF) Q2 2024 Earnings Call Transcript:
Financial Performance:
System sales for the quarter were CAD1.459 billion, a 1% decrease primarily due to a CAD13.8 million decline in Canada, offset by a CAD3.5 million improvement in the US.
Normalized adjusted EBITDA increased by 1% reaching CAD52.6 million for the quarter.
Total revenues slightly decreased from CAD305.2 million in Q2 2023 to CAD303.7 million in the current year.
Free cash flow per share for the quarter was CAD1.01, totaling CAD5.21 per share over the last 12 months.
Business Progress:
Digital sales for the quarter increased by 8%, rising from CAD266.8 million to CAD287.7 million, making up 20% of total sales.
MTY continued to focus on brand performance improvements, particularly in the US where snack category brands like Cold Stone and Wetzel's Pretzels posted strong gains.
The company closed 90 locations and opened 85, netting a decrease of 5 locations, ending the quarter with 7,107 locations.
Opportunities:
Positive system sales growth in the US, particularly in the snack category which includes Cold Stone, Wetzel's Pretzels, and others which performed exceptionally well during the quarter.
Risks:
Operational disruptions remain a concern, particularly from the ongoing ERP implementation which has been moving forward with increased intensity.
Economic factors such as minimum wage increases and intensified promotional activities in the competitive food sector could affect profitability.
More details: MTY FOOD GROUP INC IR
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