TH International's Q2 2024: Resilient EBITDA Gains Amid Revenue Decline

TH International (NASDAQ: THCH) has released its financial report for the second quarter of the 2024 fiscal year. For the cumulative first half of 2024, the company reported a total revenue of RMB 699 million, marking a year-over-year decrease of 6.58%. The company also posted a net loss of RMB 189 million, a significant reduction of 52.94% compared to the same period last year. Basic earnings per share for the accumulated period stood at -1.18 RMB, an improvement from the -1.5 RMB of the previous year.

In the second quarter alone, the company achieved system-wide sales of RMB 403.8 million, reflecting a modest year-over-year growth of 1.6%. Adjusted EBITDA at the self-operated store level was RMB 33.15 million for the quarter, an impressive increase of 81.7% and marking the eighth consecutive quarter of positive adjusted EBITDA. The store-level adjusted EBITDA margin reached 10.3%, setting a historical quarterly high. Additionally, for the first time, the company reported a profitable adjusted EBITDA at the corporate level this quarter.

The strong financial performance in certain metrics reflects positively on the company's operational strategies, despite an overall decline in cumulative revenue and net loss. The significant improvement in adjusted EBITDA and EBITDA margin at the self-operated store level suggests more efficient cost management and an enhanced operating model. Market analysts consider these results a notable achievement, especially during challenging economic periods. The company's focus on achieving profitability at the corporate level demonstrates its commitment to improving financial health and shareholder value.