Tims China Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, reported its unaudited financial results for Q4 and full year 2024, highlighting significant operational improvements and strategic growth initiatives [1][4][5]. Financial Performance - Total revenues for Q4 2024 were RMB332.6 million (USD45.6 million), a decrease of 12.0% from RMB377.9 million in Q4 2023 [6][8]. - Full-year total revenues were RMB1,391.2 million (USD190.6 million), representing a 10.8% decrease from 2023 [6]. - Company owned and operated store contribution margin improved by 3.9 percentage points to 4.8% in Q4 2024 compared to the same quarter of 2023 [5][6]. Operational Highlights - The company opened 76 new stores in Q4 2024, bringing the total to 1,022 system-wide stores by year-end [1][6]. - Registered loyalty club members reached 24.0 million, reflecting a year-over-year growth of 29.7% [1][6]. - The company achieved a significant increase in company owned and operated store contribution, which rose by 353.1% to RMB13.0 million (USD1.8 million) in Q4 2024 [6][8]. Cost Management - The company reported a decrease in food and packaging costs by 26.5% in Q4 2024, benefiting from supply chain efficiencies [9][12]. - Payroll and employee benefits expenses decreased by 26.7% in Q4 2024, attributed to optimized staffing arrangements [9][12]. - Marketing expenses were reduced by 35.0% in Q4 2024, reflecting cost optimization measures [12][13]. Strategic Initiatives - The CEO emphasized the company's strategic positioning in "Coffee + Freshly Prepared Food" and the completion of renovations in nearly all company-owned stores [4][5]. - The company received over 6,200 sub-franchisee applications by year-end, indicating strong interest in its franchise model [4]. - Tims China launched new product offerings and marketing campaigns to enhance customer engagement and brand presence [24][27]. Future Outlook - The CFO expressed confidence in achieving full-year corporate EBITDA breakeven, focusing on improving store unit economics and operational efficiencies [7][5]. - The company aims to further enhance its supply chain capabilities and accelerate sub-franchising expansion [7].