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百胜中国(09987) - 2024 - 年度业绩
09987YUM CHINA(09987)2025-02-27 22:10

Financial Performance - Total revenue grew by 3% to 11.3billion,markinganewhighsincethespin−off;excludingforeigncurrencyeffects,revenuewouldhaveincreasedby511.3 billion, marking a new high since the spin-off; excluding foreign currency effects, revenue would have increased by 5%[6] - Total revenue for 2024 reached 11,303 million, a 3% increase from 10,978millionin2023[28]−Thecompanyreportedatotalrevenueof10,978 million in 2023[28] - The company reported a total revenue of 900 million, representing a 10% increase year-over-year[34] - Total revenue for the company reached 11,911millionfortheyearendingDecember31,2024,withKFCandPizzaHutcontributing11,911 million for the year ending December 31, 2024, with KFC and Pizza Hut contributing 8,509 million and 2,260million,respectively[110]−Totalrevenuefor2023was2,260 million, respectively[110] - Total revenue for 2023 was 10,978 million, an increase of 9% compared to 9,569millionin2022[112]−Companyrestaurantrevenuereached9,569 million in 2022[112] - Company restaurant revenue reached 10,391 million in 2023, up from 9,110millionin2022,reflectingagrowthof149,110 million in 2022, reflecting a growth of 14%[112] Profitability - Operating profit increased by 5% to 1.2 billion, with core operating profit up by 12%[6] - Net profit for 2024 was 911million,up10911 million, up 10% from 827 million in 2023[28] - The company reported a net income of 150million,a12150 million, a 12% increase compared to the last quarter[34] - Net profit for 2023 was 911 million, compared to 827millionin2022,representingayear−over−yearincreaseof10827 million in 2022, representing a year-over-year increase of 10%[116] - Basic earnings per diluted share grew by 18% to 2.33, a new annual high, or 22% excluding foreign currency effects[6] - Basic earnings per share (EPS) for 2023 was 2.34,upfrom2.34, up from 1.99 in 2022, indicating a growth of 18%[116] Store Expansion - System sales increased by 5% year-over-year, driven by a 7% contribution from net new stores, with same-store sales reaching 97% of last year's level[6] - Total store count increased by 12%, with a net addition of 1,751 stores, of which 512 were franchised, accounting for approximately 29% of net new stores[6] - As of December 31, 2024, Yum China operates 11,648 KFC stores in China, holding controlling interests of 58% to 92% in various regions[38] - As of December 31, 2024, there are 3,724 Pizza Hut restaurants in China, marking significant growth since its first opening in 1990[39] Digital and Delivery Growth - Delivery sales rose by 14%, maintaining a decade-long trend of double-digit annual growth, representing 39% of KFC and Pizza Hut restaurant revenue[6] - Digital order revenue reached 9.6billion,accountingforapproximately909.6 billion, accounting for approximately 90% of restaurant revenue[6] - KFC and Pizza Hut membership exceeded 525 million, an 11% increase year-over-year, with member sales accounting for 65% of total system sales[6] Shareholder Returns - Yum China plans to return 1.5 billion to shareholders in 2024, including 248millionincashdividendsand248 million in cash dividends and 1.24 billion in stock buybacks, equivalent to about 8% of shares outstanding as of December 31, 2023[6] - Total cash dividends paid to shareholders in 2024, 2023, and 2022 were 248million,248 million, 216 million, and 202millionrespectively[171]TaxandAuditMatters−ThecompanyiscurrentlyundergoingatransferpricingauditbytheStateTaxationAdministrationofChina,withalikelihoodofover50202 million respectively[171] Tax and Audit Matters - The company is currently undergoing a transfer pricing audit by the State Taxation Administration of China, with a likelihood of over 50% that the tax status will be maintained[15] - The audit focuses on related party transactions from 2006 to 2015, assessing the effectiveness of internal controls related to uncertain tax positions[15] - The company has engaged tax professionals to assist in interpreting applicable tax laws and regulations, which is crucial given the complexity of tax laws[15] - The company is responsible for preparing consolidated financial statements that are free from material misstatement due to fraud or error, as per US GAAP and Hong Kong Companies Ordinance[18] Assets and Liabilities - Total assets decreased from 12,031 million in 2023 to 11,121millionin2024,adeclineofapproximately7.611,121 million in 2024, a decline of approximately 7.6%[33] - Total liabilities decreased from 4,912 million in 2023 to 4,694millionin2024,areductionofabout4.44,694 million in 2024, a reduction of about 4.4%[33] - Shareholders' equity decreased from 7,106 million in 2023 to 6,414millionin2024,adeclineofapproximately9.76,414 million in 2024, a decline of approximately 9.7%[33] Capital Expenditures - Capital expenditures for 2024 totaled 705 million, slightly down from 710millionin2023[32]−Capitalexpendituresfor2024were710 million in 2023[32] - Capital expenditures for 2024 were 383 million for KFC and 111millionforPizzaHut,showinganincreasefrom111 million for Pizza Hut, showing an increase from 358 million and 113millionrespectivelyin2023[196]ImpairmentandAssetManagement−Thecompanyrecordedimpairmentchargesof113 million respectively in 2023[196] Impairment and Asset Management - The company recorded impairment charges of 18 million for restaurant-level assets as of December 31, 2024, reflecting a fair value of 51millionforthoseassets[145]−Thecompanyconductsimpairmenttestingforeachrestaurantasanindependentcash−generatingunit,reviewinglong−termassetseverysixmonthsorwhenindicatorssuggestrecoverabilityissues[61]MarketStrategyandFutureOutlook−Thecompanyplanstocontinueexpandingitsmarketpresenceandinvestinginnewproductdevelopmenttodrivefuturegrowth[28]−MarketexpansionplansincludeenteringthreenewinternationalmarketsbyQ32024[34]−Thecompanyisconsideringstrategicacquisitionstoenhanceitsproductportfolio,withabudgetof51 million for those assets[145] - The company conducts impairment testing for each restaurant as an independent cash-generating unit, reviewing long-term assets every six months or when indicators suggest recoverability issues[61] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[28] - Market expansion plans include entering three new international markets by Q3 2024[34] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 100 million allocated for this purpose[34] Membership and Loyalty Programs - The paid membership program offers various benefits, including free delivery and product discounts, with income recognized proportionally over the membership period[52] - The membership program allows registered members to earn points redeemable for discounts or free products, with estimated point values reducing revenue and recognized as deferred income[57] Financial Instruments and Fair Value - The fair value of financial instruments is determined based on market quotes or discounted cash flow models, incorporating various risk factors[71][74] - The company measures financial instruments at fair value and recognizes changes in fair value in the consolidated income statement[91] Retirement and Employee Benefits - The company provides retirement benefits through a defined contribution plan, with contributions ranging from 5% to 10% of base salary, and participants receive a lump sum upon leaving based on a percentage of the company's contributions[148] - The company has reserved 45 million shares for its long-term incentive plan initiated on October 31, 2016, with stock options and stock appreciation rights having an exercise price equal to or above the market fair value on the grant date[150]