SHANGHAI and NEW YORK, USA – TH International Limited, the exclusive operator of Tim Hortons coffee shops in China (“Tims China” or the “Company”), today announced its unaudited financial results for the second quarter 2024.
Mr. Yongchen Lu, CEO & Director of Tims China, commented, “Tims has achieved a critical milestone in the second quarter, as we achieved adjusted corporate EBITDA profitability for the first time in our corporate history.
This result was driven by an intense focus on our core strengths of delivering guests great value for money and a differentiated fresh food offering, coupled with continuous improvements in operational efficiency. This important milestone comes as we deliver eight consecutive quarters of adjusted store EBITDA profitability, with our highest ever adjusted store EBITDA margin of 10.3%.
Our focus on profitable growth has included greater emphasis on building our franchise network, collaborating closely with our sub-franchisees to provide them with compelling unit economics while delivering our guests a consistent experience and driving our bottom-line profit.
Our efforts are paying off not just in our improving profitability but in the strength of our sub-franchisees pipeline, which stands at over 3,600 applications as of the end of June.”
Tims China: Second Quarter 2024 Highlights
- Total revenues of RMB366.8 million (USD50.5 million), representing a 10.9% decrease from the same quarter of 2023.
- System sales2 of RMB403.8 million (USD55.6 million), representing a 1.6% increase from the same quarter of 2023.
- Net new store openings for franchised stores totaled 31 for the quarter (one systemwide net new store opening, as certain company-owned underperforming stores were closed and we focused on sub-franchise development).
- Adjusted store EBITDA3 was RMB33.2 million (USD4.6 million), representing a 81.7% increase from the same quarter of 2023.
- Adjusted store EBITDA margin4 was 10.3%, representing a 5.3 percentage points improvement over the same quarter of 2023.
- Achieved first-ever positive adjusted corporate EBITDA1 of RMB4.1 million (USD0.6 million), compared to a loss of RMB40.8 million in the same quarter of 2023.
- Registered loyalty club members totaled 21.4 million members as of June 30, 2024, representing a 45.4% increase from the same quarter of 2023.
