Quarterly Report • Nov 30, 2022
Quarterly Report
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IBERSOL – SGPS, SA
Publicly Listed Company
Registered office: Praça do Bom Sucesso, 105/159, 9th floor, Porto Share Capital Euros 46.000.000 Commercial Registry: Oporto under number 501669477 Fiscal number: 501669477
(not audited)
To allow comparison with other companies in the sector and previous financial periods, the Group uses operational performance indicators, as mentioned throughout this section, the definition and explanation of which can be consulted in the glossary.
After the beginning of the year, still marked by the Ómicron variant, which slowed down the pace of recovery from the effects of the Covid-19 pandemic, the outbreak of the military conflict in Ukraine and the worsening of global geopolitical tensions have challenged again the group portfolio brands.
This context of uncertainty and instability led to a disruption in supply chains, to the acceleration of the escalation of inflation in food products, energy and transport, with a consequent impact on Ibersol cost structure and a fall in consumer confidence.
Despite this demanding context, the group's portfolio once again showed a high capacity for resilience, recording a solid growth of 64.9% when compared to the same period in 2021, affected by the period of lockdown and restrictions on mobility, with a consolidated turnover in the first nine months of 2022 of EUR 398.6 million, which compares with EUR 241.7 million in the same period of the previous year.
| Turnover (euro million) | 9M 2022 | 9M 2021 | Var. 22/21 | 9M 2019 | Var 22/19 |
|---|---|---|---|---|---|
| Sales of Restaurants | 390.1 | 235.5 | 65.6% | 343,1 | 13.7% |
| Sales of Merchandise | 7.0 | 5.0 | 39.8% | 10.4 | $-32.3%$ |
| Services Rendered | 1.5 | 11 | 33.5% | 2.7 | $-43.6%$ |
| Turnover | 398.6 | 241.7 | 64.9% | 356.2 | 11.9% |
The sales evolution compared to 2019 shows, in this third quarter, the maintenance of the good performance seen since the Easter period, to which the recovery of tourism with a sharp growth, greater mobility and increased private consumption, traditionally stronger in holiday seasons, contributed decisively.
In Portugal, after an early summer with a slight slowdown in the pace of growth, in the third quarter we achieved the best post-pandemic performance, largely surpassing the 2019 figures.
In Spain, there was a greater resistance in the pace of recovery of losses to levels identical to the same period in 2019, directly related to the evolution of traffic at the airports where we operate restaurants which, at the end of the quarter, were still around 12% below of verified to the same period in 2019.
Sales of restaurants located in Angola reflect the evolution in local currency, which does not include the gains arising from the appreciation against the EUR and USD.
In this context, the monthly sales evolution by segment, illustrates the different impacts of the restrictions that have been in the last two years, the respective comparative with the same period of 2019 and the pace of recovery achieved by business area.
The concessions and catering segment recorded the best performance since the beginning of the recovery from the impacts of the pandemic, in the aviation sector and in events in particular, having surpassed, in June and September, the sales recorded in the same period of 2019, as a result of the increase in traffic passengers at airports in parallel with the growth in consumption per client, and the upturn in hosting corporative and private events.
In Spain, where the group operates restaurants at six airports, passenger traffic has registered a gradual recovery since February, with losses in the 3 rd quarter of 12%, when compared to 2019, with urban airports showing a slower pace of recovery. In Portugal, losses were just 1%, which reflects a faster recovery pace than in Spain, which is not unrelated to the lower dependence on passengers from markets still affected by restrictions caused by Covid-19, namely the Asian ones. It should also be noted that since the beginning of the second quarter, some of the airports located on the islands have had higher monthly traffic than in the same period in 2019, benefiting from recognition as safe and unrestricted destinations by tourists from the domestic market, as well as by northern European countries.
| SALES IN RESTAURANTS (euro million) |
9M 2022 | 9M 2021 | Var. 22/21 | 9M 2019 | Var 22/19 |
|---|---|---|---|---|---|
| Restaurants | 71.6 | 49.3 | 45.3% | 77.3 | $-7.4%$ |
| Counters | 224,9 | 152.1 | 47.9% | 164,8 | 36.4% |
| Concessions&Catering | 93.6 | 34.2 | 173,7% | 101,0 | $-7,3%$ |
| Total Sales | 390.1 | 235.5 | 65.6% | 343.1 | 13.7% |
Likewise, the restaurants with dine-in service, traditionally associated with leisure moments, reached pre-pandemic sales levels in the summer months, registering a slight slowdown at the end of the summer season.
The counter segment once again showed a good performance, with strong growth compared to the same period of 2021, (a growth of 48%), as well as a high pace of recovery compared to 2019 of 36%, to which contributed three factors:
Delivery sales, which partially offset the impact of the operation's limitations in the restaurant and counter segments in the lockdown period, with the gradual return to normality tends to reduce its weight to identical pre-pandemic levels, representing 20% of sales in the third quarter - excluding sales in the concessions and catering segment – compared to 18.7% in the first quarter of 2020, the previously period to the impact of the pandemic.
With the gradual resumption of normality in consumer habits, there is a reduction in the relative weight of sales in the drive and delivery channels, as opposed to an increase in the weight of sales in restaurants, namely those located in shopping centers, which returned in the quarter to a similar pre-pandemic weight.
During the first nine months, 13 restaurants were definitively closed, 8 of which were franchised. In addition to the nine openings in the first half, four new restaurants were opened in the third quarter: two Pizza Hut restaurants, one KFC and one new concession at Barcelona airport.
The closure of the 5 equity restaurants, three of which in Spain, resulted from the option of not renewing the lease contracts.
At the end of september, the total number of restaurants was 621 (552 equity and 69 franchises), as shown below:
| Nº of Restaurants | 31.12.2021 | Q1 | Q 2 | Q 3 | Closures 2022 | 30.09.2022 |
|---|---|---|---|---|---|---|
| PORTUGAL | 383 | 3 | 4 | 3 | 2 | 391 |
| Equity Restaurants | 382 | 3 | 4 | 3 | $\overline{\mathbf{2}}$ | 390 |
| Pizza Hut | 100 | $\overline{2}$ | 102 | |||
| MIIT+Ribs | 4 | 1 | 3 | |||
| Pans | 40 | 40 | ||||
| Burger King | 119 | 2 | 121 | |||
| KFC | 41 | 3 | 1 | 1 | 46 | |
| Pasta Caffé | $\overline{2}$ | 1 | 1 | |||
| Quiosques | 8 | 8 | ||||
| Taco Bell | 11 | 1 | 12 | |||
| Coffee Shops | 25 | 25 | ||||
| Catering | 9 | 9 | ||||
| Concessions & Other | 23 | 23 | ||||
| Franchise Restaurants | 1 | 1 | ||||
| SPAIN | 225 | 1 | 1 | 1 | 10 | 218 |
| Equity Restaurants | 152 | 1 | 1 | 1 | 3 | 152 |
| Pizza Móvil | 14 | $\overline{2}$ | 12 | |||
| Pizza Hut | 3 | 3 | ||||
| Burger King | 38 | 1 | 37 | |||
| Pans | 28 | 1 | 1 | 30 | ||
| Ribs | 13 | 13 | ||||
| FrescCo | $\overline{2}$ | $\overline{2}$ | ||||
| KFC | $\overline{2}$ | $\overline{a}$ | ||||
| Concessions | 52 | 1 | 53 | |||
| Franchise Restaurants | 73 | 0 | 0 | 0 | 7 | 66 |
| Pizza Móvil | 5 | 1 | 4 | |||
| Pans | 42 | 3 | 39 | |||
| Ribs | 17 | 1 | 16 | |||
| FrescCo | 4 | 1 | 3 | |||
| SantaMaria | 5 | 1 | 4 | |||
| ANGOLA | 10 | $\overline{0}$ | $\bf{0}$ | $\mathbf{0}$ | 10 | |
| KFC | 9 | 9 | ||||
| Pizza Hut | 1 | 1 | ||||
| Other Locations - Franchise | $\overline{3}$ | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | 1 | $\overline{2}$ |
| Pans | 3 | 1 | $\overline{2}$ | |||
| Total Equity Restaurants | 544 | 4 | 5 | 4 | 5 | 552 |
| Total Franchise Restaurants | 77 | $\bf{0}$ | 0 | $\bf{0}$ | 8 | 69 |
| TOTAL | 621 | 4 | 5 | 4 | 13 | 621 |
Compared to the first half of 2019, it should be noted that the number of own restaurants increased by 24 units.
As a result of the application of Ley 13/2021, since October 1st 2021, rents at airports in Spain are no longer relevant for the purposes of applying IFRS16 until passenger traffic per airport returns to 2019 levels.
For this purpose, and in order to allow a correct comparability of results in the first nine months of 2022, the comparison with the results of the same period of 2019 is highlighted, simulating a scenario in which the contracts with AENA were not equally relevant for the purposes of IFRS16. In this way, external supplies and services now reflect the entirety of the rents for the semester, and the depreciation for the period is also corrected due to the derecognition of the depreciation of the rights of use associated with the contracts with AENA.
The consolidated operating income at the end of the first nine months amounted to 27.3 million Euros, which compares with the same period of 2019 corrected, in the amount of 29.5 million Euros.
| (million euros) | 9M 2022 | 9M 2021 corrected |
9M 2019 corrected |
var. 22 vs 19 |
|||
|---|---|---|---|---|---|---|---|
| Turnover | 398,6 | 241,7 | 356,2 | 11,9% | |||
| Cost of sales | 105,3 | 26,4% | 60,2 | 24,9% | 87,0 | 24,4% | 21,0% |
| gross margin % | 73,6% | 75,1% | 75,6% | $-2,0$ p.p. | |||
| External supplies and services | 114,8 | 28,8% | 66,3 | 27,4% | 97,5 | 27,4% | 17,7% |
| Personnel costs | 115,8 | 29,1% | 79,4 | 32,9% | 109,8 | 30,8% | 5,5% |
| Amortisation, depreciation and impairment losses of TFA, Rights of Use, Goodwill and IA |
41,2 | 10,3% | 40.6 | 16,8% | 36,5 | 10,3% | 12,9% |
| Other income/operating costs | $-5,9$ | $-1,5%$ | $-8,9$ | $-3,7%$ | $-4,3$ | $-1,2%$ | 37,3% |
| Operating Income | 27,3 | 6,8% | 4,0 | 1,7% | 29,5 | 8,3% | $-7,5%$ |
| margin | 6,8% | 1,7% | 8,3% | $-1,4p.p.$ | |||
| Ebitda | 68,5 | 17,2% | 44,6 | 18,5% | 66,0 | 18,5% | 3,8% |
| margin | 17,2% | 18,5% | 18,5% | $-1,3p.p.$ |
Turnover amounted to 398.6 million Euros, 11.9% higher than the 356.2 million Euros in the same period of 2019, with more 4.5% directly operated restaurants.
Gross margin was 73.6% of turnover, 2.0p.p. lower than in the first nine months of 2019 (9M19: 75.6%), evidencing the inflationary pressure that led to the increase in raw material prices not directly reflected in sales price.
Staff costs increased 5.5%, with the weight of this cost reducing 1.8 p.p., representing 29.1% of the turnover (9M 19: 30.8%).
External Supplies and services costs increased 17.7%, representing 28.8% of turnover, which represents an increase of 1.4 p.p. compared to the same period of 2019 corrected (9M 2019 corrected: 27.4%).
The commissions paid to aggregators contributed to this increase with the expansion of this channel to all brands and the consequent increase in the weight of delivery sales, as well as the increase in energy costs in Spain.
Other operating income and costs in the total amount of 5.9 million Euros, represent an increase of 1.6 million Euros compared to the same period of 2019, a difference that mainly results from a compensation of 2.0 million Euros, received under the claim of amounts associated with the purchase of Eat Out Group.
Amortisation, depreciation and impairment losses of TFA, Rights of Use, Goodwill and IA in the first nine months, amounted to 41.2 million Euros, which compares with 36.5 million euros of the same period of 2019 corrected by the application of Ley 13/2021, of which 16.7 million correspond to amortization of rights of use.
Therefore EBITDA in the first nine months amounted to 68.5 million Euros, an increase of 3.8% compared to the same period of 2019 corrected with Ley 13/2021.
Consolidated EBITDA margin stood at 17.2% of turnover, which compares with 18.5% in the same period in 2019, if Ley 13/2021 had been in force.
Consolidated Financial Results in the first nine months of the year were negative by 8.3 million Euros, similar to same period of 2019 corrected.
| (million euros) | 9M 2022 | 9M 2021 corrected |
9M 2019 corrected |
var. 22 vs 19 |
|||
|---|---|---|---|---|---|---|---|
| Financial Results | 8,3 | 2.1% | 8.1 | 3.3% | 8,3 | 2.3% | 0.1% |
| Financial expenses and losses | 9.2 | 2.3% | 8.5 | 3.5% | 8.5 | 2.4% | 8.2% |
| Financial income and gains | 0,8 | 0.2% | 0.4 | 0.2% | 0.2 | $0.0\%$ | 455.0% |
Financial expenses and losses totalled 9.2 million Euros, which represents an increase of 0.7 million Euros compared to the corrected nine months of 2019. A part of these expenses and losses corresponds to interest with leases in the amount of 5.9 million Euros (5.7 million Euros in the first nine months of 2019 corrected).
Net interest supported and commissions related to financing reached a total of 2.3 million Euros, which equals an average debt cost of 2.2%.
Total Assets amounted to 629.8 million Euros and Equity stood at 241.7 million Euros, representing 38.4% of total assets.
CAPEX in tangible fixed and intangible assets amounted to 23.0 million Euros. 15.8 million Euros incurred in the implementation of the expansion program and the remaining was incurred in the remodelling and modernization of restaurants.
| (million euros) | 30/09/2022 | 2021 | var. |
|---|---|---|---|
| Fixed assets additions | 20,2 | 29,7 | -9.6 |
| Intangible assets additions | 2.9 | 3.6 | $-0.7$ |
| Capex | 23.0 | 33.3 | -10.3 |
Current liabilities amount to 160.7 million Euros, of which 23.1 million correspond to liabilities for leases and 30.1 million Euros to current loans. Regarding to current loans, the Group has 56 million Euros related to commercial paper and unused contracted credit lines.
Consolidated liabilities reached 387.5 million Euros at September 30, 2022, which represents a reduction of 16.1million Euros compared to the final result in 2021.
At 30th September 2022, Equity stood at 241.7 million Euros, approximately 13 million Euros higher to the amount at the end of 2021.
| Consolidated Financial Position (million euros) |
30/09/2022 | 31/12/2021 | Var. |
|---|---|---|---|
| Total Assets | 629,2 | 632,4 | $-3,1$ |
| Total Equity | 241,7 | 228,7 | 13,0 |
| Loans | 127,8 | 167,0 | $-39,2$ |
| Liability for leases | 147,1 | 143,1 | 4,0 |
| Other liabilities | 112,6 | 93,6 | 19,0 |
| Total Equity and Liabilities | 629,2 | 632,4 | $-3,1$ |
At the end of the first nine months of 2022, net debt amounted to 186.8 million Euros, 24 million Euros less than the amount outstanding at the end of 2021 (211.0 million Euros), with a "Gearing" of 44%.
| (million euros) | 30/09/2022 | 31/12/2021 | var. |
|---|---|---|---|
| Total loans | 127,8 | 167,0 | $-39.2$ |
| Cash and bank deposits | $-85,3$ | $-97,0$ | $-11,7$ |
| Other current and non-current liabilities | $-2,8$ | $-2,2$ | 0.6 |
| Net Bank Debt | 39,7 | 67,9 | $-28,2$ |
| Liability for leases | 147,1 | 143,1 | 4,0 |
| Net Debt | 186,8 | 211,0 | $-24,1$ |
| Equity | 241,7 | 228,7 | 13.0 |
| Gearing (Net Debt/Net Debt + Equity) | 44% | 48% |
At 30 September 2022, the total Net Bank Debt amounted to 39.7 million Euros.
Following the announcement of 2 August, regarding the signing of the purchase and sale agreement of Burger King activity, Ibersol Group will now report the activity of the subsidiaries Iberking, Restauração S.A. and Lurca S.A.U, as "Discontinued operation" in terms of reporting financial statements.
Therefore, the impact on the Group's Income Statement, for the first 9 months of 2022, results in a reduction of 144.2 million Euros in turnover, 28.1 million Euros in terms of Ebitda and 7.3 million Euros of consolidated net profit.
| (million euros) | 9M 2022 Discontinued operations |
9M 2021 Discontinued operations |
|---|---|---|
| Turnover | 144,2 | 108,8 |
| Ebitda | 28,1 | 27,1 |
| margem | 19,5% | 24,9% |
| Net profit | 7,3 | 8,5 |
The total value of discontinued assets amounts to 201.5 million Euros and the liabilities directly associated with the group of discontinued assets amounts to 91.9 million Euros.
| Turnover | Sales + Services Rendered |
|---|---|
| Sales | Sales of Restaurants + Sales of Merchandise |
| Sales of Restaurants | Sales of directly operated restaurants |
| Retail Sales | Sales of restaurants - Concessions and Catering Sales |
| Sales of Merchandise | Sales of goods to third parties and franchisees |
| Gross Margin | Sales + Services Rendered - Cost of Sales |
| EBIT Margin | EBIT / Turnover |
| EBITDA Margin | EBITDA / Turnover |
| EBIT (Earnings before Interest and Taxes) | Operacional Results |
| EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) |
Operating results plus amortisation, depreciation and impairment losses of fixed assets, Rights of Use, Goodwill and Intangible Assets |
| Financial Position | |
| Capex | Tangible and intangible assets additions |
| Interest Coverage | EBITDA / Net Financing Costs |
| Net Bank Debt | Bonds + bank loans + other loans + financial leases - cash, bank deposits, current investments, and other long-term financial applications |
| Net Debt | Net Bank Debt + Liability for Leases |
| Gearing | Net Debt / (Net debt + Equity Capital) |
Recent IMF forecasts for 2022 point to a 6.2% growth of GDP in Portugal and 4.3% in Spain, with inflation rates of around 8% that have led to the consequent increase in interest rates in an attempt to stop rising inflation.
At today's data, despite the positive signs from some sectors, namely those exposed to tourism, the economies reinforce the signs of cooling down, which indicate a less positive macroeconomic framework for the end of the year, with residual growth in the Iberian Peninsula and looking forward to a potential recession in some of the most important countries of the Eurozone.
This environment will translate into an inability to fully reflect the increase in the price of raw materials and energy, with a consequent impact on the margin, which means that another challenging period is approaching for our teams and portfolio brands.
In addition to the openings carried out to date, we will continue with plans to expand Pizza Hut, KFC and Taco Bell brands. In addition to the openings already completed, we will also open 16 restaurants until the end of the year.
Following the signing, on August 2, the share purchase and sale agreement regarding the sale of shares representing the entire share capital of Iber King Restauração, S.A. and Lurca S.A.U., companies that operate Burger King restaurants in Portugal and Spain, the precedent conditions were verified or waived on November 16, 2022.
Subject to the terms and conditions set out in the purchase and sale agreement, the completion of the operation is scheduled for the date of publication of these results on November 30, 2022.
The suit against AENA, in which Pansfood asked to rebalance the leases since the beginning of the pandemic was upheld by decision of the appellate court that decided to apply the provisions of Ley 13/2021, which became final. As a result, rents payable at establishments located at each airport will be adjusted according to the variation in traffic verified annually compared to 2019 until each airport recovers the traffic of 2019.
Thus, the values contained in the financial statements of previous years are stabilized.
Porto, 29th November 2022
António Alberto Guerra Leal Teixeira
António Carlos Vaz Pinto de Sousa
_____________________________________ Maria do Carmo Guedes Antunes de Oliveira
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Juan Carlos Vázquez-Dodero de Bonifaz
Maria Deolinda Fidalgo do Couto
30 September 2022
| ASSETS | Notes | 30/09/2022 | 31/12/2021 |
|---|---|---|---|
| Non-current | |||
| Property, plant and equipment | 7 | 127 980 603 | 214 373 712 |
| Rights of use | 6 | 77 491 436 | 138 871 151 |
| Goodwill | 8 | 54 391 775 | 79 032 821 |
| Intangible assets | 8 | 25 962 831 | 35 870 696 |
| Financial investments - joint controlled subsidiaries and associated | 2 958 330 | 2 940 318 | |
| Non-current financial assets | 1 257 761 | 978 965 | |
| Other financial assets | 9 | 1 403 128 | 841 165 |
| Other non-current assets | 1 0 |
6 969 534 | 7 524 331 |
| Deferred tax | 1 6 |
5 332 127 | 11 088 442 |
| Total non-current assets | 5 | 303 747 524 | 491 521 600 |
| Current Inventories |
16 054 325 | 15 717 458 | |
| Income tax receivable | 1 6 |
30 325 | 110 222 |
| Other financial assets | 9 | 1 373 492 | 1 338 791 |
| Other current assets | 1 2 |
21 228 234 | 26 698 358 |
| Cash and cash equivalents | 1 1 |
85 307 262 | 96 968 003 |
| Total current assets | 123 993 638 | 140 832 831 | |
| Assets held for sale | 4 | 201 468 040 | |
| Total Assets | 629 209 202 | 632 354 431 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Capital and reserves attributable to shareholders | |||
| Share capital | 46 000 000 | 46 000 000 | |
| Own shares | -11 180 516 | -11 180 516 | |
| Share premium | 29 900 789 | 29 900 789 | |
| Legal reserves | 1 976 081 | 1 751 081 | |
| Translation reserve Other Reserves & Retained Earnings |
-7 111 992 167 592 359 |
-11 331 432 142 053 271 |
|
| Net profit for the period | 14 563 149 | 31 379 907 | |
| 241 739 870 | 228 573 100 | ||
| Non-controlling interests | -79 855 | 90 482 | |
| Total Equity | 241 660 015 | 228 663 582 | |
| LIABILITIES | |||
| Non-current | |||
| Loans | 1 3 |
97 694 343 | 140 439 066 |
| Lease liabilities | 1 3 |
58 691 735 | 121 422 685 |
| Deferred tax | 1 6 |
3 325 930 | 3 376 658 |
| Provisions | 2 310 634 | 2 428 023 | |
| Derivative financial instrument Other non-current liabilities |
5 896 3 704 |
18 976 4 176 |
|
| Total non-current liabilities | 162 032 242 | 267 689 584 | |
| Current | |||
| Loans | 1 3 |
30 117 135 | 26 593 284 |
| Lease liabilities | 1 3 |
20 626 726 | 21 645 649 |
| Accounts payable to suppliers and accrued costs | 1 4 |
65 201 253 | 72 507 391 |
| Income tax payable | 1 6 |
1 441 266 | 456 400 |
| Other current liabilities | 1 5 |
16 206 920 | 14 798 541 |
| Total current liabilities | 133 593 299 | 136 001 265 | |
| Liabilities directly as s ociated with the as s ets held for s ale |
4 | 91 923 647 | |
| Total Liabilities | 387 549 188 | 403 690 849 | |
| Total Equity and Liabilities | 629 209 202 | 632 354 431 |
(values in euros)
| Notes | 9 months ended 30/09/2022 |
9 months ended 30/09/2021 |
|
|---|---|---|---|
| Sales | 5 | 252 939 330 | 131 898 822 |
| Rendered services | 5 | 1 495 621 | 1 008 189 |
| Cost of sales | -61 705 776 | -30 511 704 | |
| External supplies and services | -82 049 287 | -33 163 399 | |
| Personnel costs | -75 723 867 | -48 901 588 | |
| Amortisation, depreciation and impairment losses of TFA, Rights | |||
| of Use, Goodwill and IA | 6, 7 e 8 | -25 867 638 | -49 277 128 |
| Other operating gains (losses) | 1 7 |
5 428 222 | 6 512 046 |
| Operating Income for continuing operations | 14 516 605 | -22 434 762 | |
| Financial expenses and losses | 1 8 |
-5 739 581 | -11 658 711 |
| Financial income and gains | 1 8 |
844 590 | 441 429 |
| Gains (losses) in subsidiary, associated and joint controlled subsidiaries | 18 012 | -38 249 | |
| Profit before tax for continuing operations | 9 639 626 | -33 690 293 | |
| Income tax | 1 9 |
-2 343 439 | 5 021 492 |
| Net profit for continuing operations | 7 296 187 | -28 668 801 | |
| Discontinued operations: | 4 | ||
| Profit (loss) from discontinued operations, net of tax | 7 266 870 | 8 484 683 | |
| Net profit | 14 563 057 | -20 184 118 | |
| Change in currency conversion reserve (net of tax and that can be recycled for results) |
4 219 440 | 859 704 | |
| TOTAL COMPREHENSIVE INCOME | 18 782 497 | -19 324 414 | |
| Net profit attributable to: | |||
| Owners of the parent | |||
| Continuing operations | 7 296 279 | -28 621 442 | |
| Discontinued operations | 7 266 870 | 8 484 683 | |
| Non-controlling interest | |||
| Continuing operations | -92 | -47 359 | |
| Discontinued operations | - | - | |
| Total comprehensive income attributable to: | 14 563 057 | -20 184 118 | |
| Owners of the parent | |||
| Continuing operations | 11 515 719 | -27 761 738 | |
| Discontinued operations | 7 266 870 | 8 484 683 | |
| Non-controlling interest | |||
| Continuing operations | -92 | -47 359 | |
| Discontinued operations | - | - | |
| Earnings per share: | 2 0 |
18 782 497 | -19 324 414 |
| From continuing operations | |||
| Basic | 0,17 | -0,88 | |
| Diluted | 0,17 | -0,88 | |
| From discontinued operations | |||
| Basic | 0,17 | 0,26 | |
| Diluted | 0,17 | 0,26 | |
| Assigned to shareholders | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share Capital | Own Shares |
Share Premium |
Legal Reserves |
Translation Reserve |
Other Reserves & Retained Earnings |
Net Profit |
Total parent equity |
Non controlling interests |
Total Equity |
|
| Balance on 1 January 2021 Changes in the period: Application of the consolidated profit from 2020: |
36 000 000 | -11 180 516 | 469 937 | 1 629 598 | -12 821 109 | 197 372 003 | -55 197 249 | 156 272 664 | 133 241 | 156 405 905 | |
| Transfer to reserves and retained results Conversion reserves - Angola Net consolidated income for the nine months ended on 30 September, 2021 |
121 483 | 859 704 | -55 318 732 | 55 197 249 -20 136 759 |
- 859 704 -20 136 759 |
-47 359 | - 859 704 -20 184 118 |
||||
| Total changes in the period Net profit Total comprehensive income Transactions with capital owners in the period Application of the consolidated profit from 2020: Paid dividends |
- | - | - | 121 483 | 859 704 | -55 318 732 | 35 060 490 -20 136 759 |
-19 277 055 -20 136 759 -19 277 055 - |
-47 359 -47 359 -47 359 |
-19 324 414 -20 184 118 -19 324 414 - |
|
| Balance on 30 September 2021 | - 36 000 000 |
- -11 180 515 |
- 469 937 |
- 1 751 081 |
- -11 961 405 |
- 142 053 271 |
- -20 136 759 |
- 136 995 609 |
- 85 882 |
- 137 081 491 |
|
| Balance on 1 January 2022 Changes in the period: Application of the consolidated profit from 2021: |
46 000 000 | -11 180 516 | 29 900 789 | 1 751 081 | -11 331 432 | 142 053 271 | 31 379 907 | 228 573 100 | 90 482 | 228 663 582 | |
| Transfer to reserves and retained results Liquidation of subsiduary Cortsfood Conversion reserves - Angola Net consolidated income for the nine months ended on 30 September, 2022 |
225 000 | 4 219 440 | 31 154 907 108 183 |
-31 379 907 14 563 149 |
- 108 183 4 219 440 14 563 149 |
-170 245 -92 |
- -62 062 4 219 440 14 563 057 |
||||
| Total changes in the period Net profit Total comprehensive income Transactions with capital owners in the period |
- | - | - | 225 000 | 4 219 440 | 31 263 090 | -16 816 758 14 563 149 |
18 890 772 14 563 149 18 782 589 |
-170 337 -92 -92 |
18 720 435 14 563 057 18 782 497 |
|
| Application of the consolidated profit from 2021: Paid dividends |
- | - | - | - | - | -5 724 002 -5 724 002 |
- | -5 724 002 -5 724 002 |
- | -5 724 002 -5 724 002 |
|
| Balance on 30 September 2022 | 46 000 000 | -11 180 516 | 29 900 789 | 1 976 081 | -7 111 992 | 167 592 359 | 14 563 149 | 241 739 870 | -79 855 | 241 660 015 |
| Note | 9 months ended 30/09/2022 |
9 months ended 30/09/2021 |
|
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Receipts from clients | 398 112 871 | 240 579 543 | |
| Payments to supliers | 191 535 570 | 100 126 447 | |
| Staff payments | 109 362 672 | 60 764 516 | |
| Flows generated by operations | 97 214 629 | 79 688 579 | |
| Payments/receipt of income tax | 1 699 261 | -61 002 | |
| Other paym./receipts related with operating activities | -6 023 499 | -19 932 515 | |
| Flows from operating activities (1) | 89 491 868 | 59 817 067 | |
| Cash Flows from Investment Activities Receipts from: |
|||
| Financial investments | 305 940 | 76 164 | |
| Tangible fixed assets | 737 | ||
| Intangible assets | |||
| Interest received | 1 420 933 | 391 413 | |
| Dividends received | |||
| Other financial assets | 454 619 | 1 832 868 | |
| Payments for: | |||
| Financial Investments | 147 620 | 747 132 | |
| Other financial assets | 717 901 | 1 038 312 | |
| Tangible fixed assets | 28 200 757 | 17 330 873 | |
| Intangible assests | 3 006 464 | 1 772 240 | |
| Other investments | |||
| Flows from investment activities (2) | -29 891 250 | -18 587 376 | |
| Cash flows from financing activities | |||
| Receipts from: | |||
| Loans obtained | 3 304 795 | 24 135 784 | |
| Payments for: | |||
| Loans obtained | |||
| Leases agreements | 42 750 491 | 13 930 341 | |
| Interest and similar costs | 17 293 280 | 21 766 776 | |
| Interest on lease agreements | 4 079 972 | 3 225 410 | |
| Capital reductions and supplementary entries | 5 991 278 | 5 040 566 | |
| Dividends paid | 5 724 002 | - | |
| Flows from financing activities (3) | -72 534 228 | -19 827 310 | |
| Change in cash & cash equivalents (4)=(1)+(2)+(3) | -12 933 610 | 21 402 381 | |
| Effects of exchange rate differences | 1 272 869 | -85 589 | |
| Cash & cash equivalents at the start of the period | 96 968 003 | 50 549 377 | |
| Cash & cash equivalents at end of the period | 1 1 |
85 307 262 | 71 866 169 |
(Values in euros)
IBERSOL, SGPS, SA (Group or Ibersol) with head office at Praça do Bom Sucesso, Edifício Península n.º 105 a 159 – 9º, 4150-146 Porto, Portugal. Ibersol's subsidiaries (jointly called "the Group"), operate a network of 621 units in the restaurant segment through the brands Pizza Hut, Pasta Caffé, Pans & Company, Ribs, FresCo, SantaMaria, Kentucky Fried Chicken, Burger King, O' Kilo, Quiosques, Pizza Móvil, Miit, Taco Bell, Sol, Silva Carvalho Catering e Palace Catering, coffe counters and other concessions. The group has 552 units which it operates and 69 units under a franchise contract. Of this universe, 391 are based in Portugal, of which 390 are owned and 1 franchised, and 218 are based in Spain, spread over 152 own establishments and 66 franchisees, and 10 in Angola and 2 in other locations.
Ibersol is a public limited company listed on the Euronext of Lisbon.
Ibersol SGPS parent company and ultimate parent entity is ATPS - SGPS, S.A..
In Spain, on October 2, 2021 Law 13/2021 of October 1 was published, which determined that the guaranteed minimum annual income provided for in these contracts for the period between March 15, 2020 and June 20, both included, be eliminated and as of June 21, 2020 and until the annual traffic of each Airport reaches the values recorded in 2019, the minimum guaranteed annual rents of existing contracts are reduced in direct proportion to the variation in passenger traffic compared to those verified in 2019. So, in accordance with the disposed of paragraph 39 of IFRS 16, the entire lease liability referring to the contracts with AENA was derecognised against the Right of Use, with reference to the date of entry into force of the refer law.
As a result and given that the traffic accumulated in 2022 has not yet reached those registered in 2019, the contributions, the leasing contributions associated with the contracts with AENA in the first 9 months of 2022 are recognized as rent and rental expenses, which must be taken into account in the comparison of the financial information with the same period of 2021 in terms of operating costs, amortization and financial expenses.
As per the announcement of August 2, regarding the signing of the purchase and sale agreement for the Burger King restaurants, in this financial information the Group classifies the activity of the subsidiaries Iberking, Restauração S.A. and Lurca S.A.U, as "Discontinued Operation" as per note 4.
The financial statements are presented in euros and the exchange rate used in the financial statements for converting transactions and balances expressed in Kwanzas, was respectively:
| Rate on September, | Average rate at 30 |
|---|---|
| 30 2022 | September 2022 |
| 410,341 | 446,828 |
| Average rate year | |
| 31 2021 | 2021 |
| 705,219 | |
| Rate on December, 635,728 |
The main accounting policies adopted in the preparation of these consolidated financial statements are described below. These policies have been applied consistently in comparative periods.
These consolidated interim financial statements were prepared according to the international standard nº. 34 – Interim Financial Report, and therefore do not include all the information required by the annual financial statements, and should be read together with the company's financial statements for the period ended 31 December 2021.
The consolidated interim financial statements have been prepared in accordance with the historical cost principle.
The accounting policies adopted on 30 September 2022 are identical to those adopted in the preparation of the financial statements on 30 September and 31 December 2021.
These financial statements were approved by the Board of Directors and authorised for emission on 29 November 2022.
The following standards, interpretations, amendments and revisions have been approved ("endorsed") by the European Union and are mandatory for financial years beginning on or after January 1, 2022:
• Amendments to IFRS 3, IAS 16, IAS 37 and Improvements to International Financial Reporting Standards (2018- 2020 cycle)
These amendments are intended to clarify or correct minor conflicts between the requirements of the Standards. The amendments to IFRS 3 update a reference to the Conceptual Framework for Financial Reporting, without changing the accounting requirements for business combinations. Amendments to IAS 16 prohibit a company from deducting from the cost of property, plant and equipment amounts received from the sale of items produced while the company prepares the asset for its intended use. Instead, a company will recognize sales results and related costs in profit or loss. Amendments to IAS 37 specify what costs a company includes when assessing whether a contract will be harmful. The annual improvements to International Financial Reporting Standards make minor changes to IFRS 1 - First-time Adoption of International Financial Reporting Standards, IFRS 9 - Financial Instruments, IAS 41 - Agriculture and also provide illustrative examples on IFRS 16 leases The adoption of these amendments will not have a significant impact on Ibersol's consolidated financial statements.
The following standards, interpretations, amendments and revisions have been approved (endorsed) by the European Union and are only mandatory for future financial years
• IFRS 17 – Insurance Contracts, including amendments to IFRS 17 (to be applied for periods beginning on or after January 1, 2023)
IFRS 17 replaces IFRS 4 – "Insurance contracts", the standard that has been in effect on an interim basis since 2004. IFRS 17 is applicable to all entities that issue insurance contracts, reinsurance contracts and investment contracts with participation characteristics discretionary. The amendments to IFRS 17 are intended to help companies implement the Standard and facilitate the explanation of their financial performance. The future adoption of these amendments is not expected to have a significant impact on Ibersol's consolidated financial statements.
• Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies (to be applied for financial years beginning on or after 1 January 2023)
These amendments aim to change the requirements of IAS 1 with regard to the disclosure of accounting policies. An entity should disclose material accounting policies, rather than significant accounting policies, whereby examples and explanations of how to identify a material accounting policy are identified. The materi ality concept is described in IFRS Practice Statement 2 through the 4-step materiality concept. The future adoption of these amendments is not expected to have a significant impact on Ibersol's consolidated financial statements.
• Amendments to IAS 8 – Accounting Policies, Changes in Estimates and Errors: Definition of Accounting Estimates (to be applied for financial years beginning on or after 1 January 2023)
These amendments are intended to clarify the definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in the financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require that items in the financial statements be measured in a way that involves measurement uncertainty. A change in estimate resulting from new information or developments is not a correction of an error. In addition, the effects of such a change used to develop an estimate is only considered a change in accounting estimates if it does not result from correcting prior period errors. The future adoption of these amendments is not expected to have a significant impact on Ibersol's consolidated financial statements.
• Amendments to IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction (to be applied for fiscal years beginning on or after January 1, 2023)
These changes essentially included certain specific transactions to the exclusion of the exemption from the initial recognition of deferred taxes, when their initial recognition gives rise to equal amounts of taxable temporary differences and deductible temporary differences. The future adoption of these amendments is not expected to have a significant impact on Ibersol's consolidated financial statements.
Amendments to IFRS 17 - Insurance contracts: Initial application of IFRS 17 and Amendments to IFRS 9 - Comparative information (to be applied for periods beginning on or after 1 January 2023)
The proposed amendments are a transition option related to the comparative information on financial assets presented in the initial application of IFRS 17. These amendments aim to help entities to avoid temporary accounting mismatches between financial assets and liabilities of insurance contracts and, therefore, to improve the usefulness of comparative information for users of financial statements. The future adoption of these amendments is not expected to have a significant impact on Ibersol's consolidated financial statements).
The following standards, interpretations, amendments and revisions, with mandatory application in future financial years, were not, until the date of approval of these financial statements, adopted ("endorsed") by the European Union:
Amendments to IAS 1 - Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current 01-jan-23. This amendment aims to promote consistency in the application of requirements, helping companies to determine whether, in the statement of financial position, debts and other liabilities with an uncertain settlement date should be classified as current (due or potentially due in one year) or non-current and also aims to clarify the debt classification requirements, in which a company can liquidate it by converting it into equity. These changes clarify, do not change, the existing requirements and, therefore, should not significantly affect the companies' financial statements, however, they may result in a reclassification of some liabilities from current to non-current and vice versa.
Amendments to IFRS 16 -Leases: 01-jan-24. The proposed amendments add subsequent measurement requirements for sale-leaseback transactions. These amendments require the seller-lessee to subsequently measure the liabilities arising from a sale-leaseback transaction so that it does not recognize any gain or loss relating to the retained right of use. The effective date of this change is under review and may be changed to 01 jan-2024.
These standards have not yet been adopted ("endorsed") by the European Union and, as such, were not applied by the Group in the nine-month period ended September 30, 2022.
3.1. The following Group companies were included in the consolidation perimeter as at 30 September 2022 and 31 December 2021:
| Company | % Shareholding | |||
|---|---|---|---|---|
| Head Office | Sep/22 | Dec/21 | ||
| Parent company | ||||
| Ibersol SGPS, S.A. | Porto | mãe | mãe | |
| Subsidiary companies | ||||
| Iberusa Hotelaria e Restauração, S.A. | Porto | 100% | 100% | |
| Ibersol Restauração, S.A. | Porto | 100% | 100% | |
| Ibersande Restauração, S.A. | Porto | 100% | 100% | |
| Ibersol Madeira e Açores Restauração, S.A. | Funchal | 100% | 100% | |
| (d) Ibersol - Hotelaria e Turismo, S.A. | Porto | 100% | 100% | |
| (e ) Iberking Restauração, S.A. | Porto | 100% | 100% | |
| Iberaki Restauração, S.A. | Porto | 100% | 100% | |
| Restmon Portugal, Lda | Porto | 61% | 61% | |
| Vidisco, S.L. | Vigo - Espanha | 100% | 100% | |
| Inverpeninsular, S.L. | Vigo - Espanha | 100% | 100% | |
| (d) Asurebi SGPS, S.A. | Porto | 100% | 100% | |
| Firmoven Restauração, S.A. | Porto | 100% | 100% | |
| IBR - Sociedade Imobiliária, S.A. | Porto | 100% | 100% | |
| (d) Eggon SGPS, S.A. | Porto | 100% | 100% | |
| Anatir SGPS, S.A. | Porto | 100% | 100% | |
| (e ) Lurca, SA | Madrid-Espanha | 100% | 100% | |
| Sugestões e Opções-Actividades Turísticas, S.A | Porto | 100% | 100% | |
| José Silva Carvalho Catering, S.A | Porto | 100% | 100% | |
| (a) Iberusa Central de Compras para Restauração ACE | Porto | 100% | 100% | |
| (b) Vidisco, Pasta Café Union Temporal de Empresas | Vigo - Espanha | 100% | 100% | |
| Maestro - Serviços de Gestão Hoteleira, S.A. | Porto | 100% | 100% | |
| SEC - Eventos e Catering, S.A. | Porto | 100% | 100% | |
| IBERSOL - Angola, S.A. | Luanda - Angola | 100% | 100% | |
| HCI - Imobiliária, S.A. | Luanda - Angola | 100% | 100% | |
| Ibergourmet Produtos Alimentares (ex-Gravos 2012, S.A.)Porto | 100% | 100% | ||
| Lusinver Restauracion, S.A. | Vigo - Espanha | 100% | 100% | |
| The Eat Out Group S.L.U. | Barcelona - Espanha | 100% | 100% | |
| Pansfood, S.A.U. | Barcelona - Espanha | 100% | 100% | |
| Foodstation, S.L.U | Barcelona - Espanha | 100% | 100% | |
| Dehesa de Santa Maria Franquicias, S.L. | Barcelona - Espanha | 100% | 100% | |
| (c) Cortsfood, S.L. | Barcelona - Espanha | - | 50% | |
| Volrest Aldaia, S.L | Vigo - Espanha | 100% | 100% | |
| Volrest Alcala, S.L | Vigo - Espanha | 100% | 100% | |
| Volrest Alfafar, S.L. | Vigo - Espanha | 100% | 100% | |
| Volrest Rivas, S.L. | Vigo - Espanha | 100% | 100% | |
| Voesmu Restauracion, SL | Vigo - Espanha | 100% | 100% | |
| Associated companies | ||||
| Ziaicos - Serviços e gestão, Lda | Porto | 40% | 40% | |
| Companies controlled jointly | ||||
| UQ Consult - Serviços de Apoio à Gestão, S.A. | Porto | 50% | 50% |
(a) Company consortium agreement that acts as the Purchasing and Logistics Centre and provides the respective restaurants with raw materials and maintenance services. (b) Union Temporal de Empresas which was founded in 2005 and that during the year functioned as the Purchasing Centre in Spain by providing raw materials to the respective restaurants. (c ) Subsidiary liquidated in January 2022..
(d) Merge of the subsidiaries Ibersol Hotelaria e Turismo, Asurebi and Eggon into the subsidiary Ibersol Restauração, S.A..
(e) Subsidiaries recognized in discontinued operations (Note 4).
The above entities develop their business in the countries where they are based.
The subsidiary companies were included in the consolidation by the full consolidation method. UQ Consult, the jointly controlled entity and the associated Ziaicos, was subject to the equity method according to the group's shareholding in this company.
The shareholding percentages in the indicated companies imply an identical percentage in voting rights.
3.2. Changes to the consolidation perimeter
3.2.1. Acquisition of new companies
In the nine month period ended in 30 September 2022 there were no acquisitions of subsidiaries.
In the nine month period periods ended in 30 September 2022 there were no disposals of subsidiaries.
3.2.3.1. With reference to January 13, 2022, the subsidiary Cortsfood, SL was liquidated.
3.2.3.2. With reference to August 1, 2022, the subsidiaries Ibersol Hotelaria e Turismo, Asurebi and Eggon merged into the subsidiary Ibersol Restauração, S.A..
On 02 August 2022, the Ibersol Group and Restaurant Brands Iberia, S.A. signed a promissory contract for the purchase and sale of the shares of Iberking and Lurca with some suspensive conditions and, having been met, it was agreed that the date of completion of the transaction will occur on 30 November 2022.
In accordance with IFRS 5, as a result of the Burger King restaurants sale agreement, the interim condensed consolidated statement of income and other comprehensive income has been restated, in accordance with IFRS 5, as a result of the Burger King restaurants sale agreement, as a Group of assets classified as held for sale.
Therefore, the impacts on the condensed consolidated income statement for the period ended on 30 September 2021 are related to the reclassification of its transactions to the caption "Profit (loss) from discontinued operation, net of tax".
On 30 September 2021, the impacts on the condensed consolidated income statement are as follows:
| 9 months ended 30/09/2021 |
Discontinued operations |
9 months ended 30/09/2021 (represented) |
|
|---|---|---|---|
| Sales | 240 571 036 | -108 672 214 | 131 898 822 |
| Rendered services | 1 120 522 | -112 333 | 1 008 189 |
| Cost of sales | -60 162 877 | 29 651 173 | -30 511 704 |
| External supplies and services | -56 962 806 | 23 799 407 | -33 163 399 |
| Personnel costs Amortisation, depreciation and impairment losses of TFA, Rights |
-79 438 939 | 30 537 351 | -48 901 588 |
| of Use, Goodwill and IA | -63 739 555 | 14 462 427 | -49 277 128 |
| Other operating gains (losses) | 8 850 072 | -2 338 026 | 6 512 046 |
| Operating Income for continuing operations | -9 762 547 | -12 672 215 | -22 434 762 |
| Financial expenses and losses | -14 782 001 | 3 123 290 | -11 658 711 |
| Financial income and gains | 441 442 | -13 | 441 429 |
| Gains (losses) in subsidiary, associated and joint controlled subsidiaries | -38 249 | - | -38 249 |
| Profit before tax for continuing operations | -24 141 355 | -9 548 938 | -33 690 293 |
| Income tax | 3 957 237 | 1 064 255 | 5 021 492 |
| Net profit for continuing operations | -20 184 118 | -8 484 683 | -28 668 801 |
| Discontinued operations: | |||
| Profit (loss) from discontinued operations, net of tax | - | - | 8 484 683 |
| Net profit | -20 184 118 | -8 484 683 | -20 184 118 |
| Change in currency conversion reserve (net of tax and that can be recycled for results) |
859 704 | - | 859 704 |
| TOTAL COMPREHENSIVE INCOME | -19 324 414 | -8 484 683 | -19 324 414 |
| Net profit attributable to: | |||
| Owners of the parent | |||
| Continuing operations | -20 136 759 | -8 484 683 | -28 621 442 |
| Discontinued operations | - | - | 8 484 683 |
| Non-controlling interest | |||
| Continuing operations | -47 359 | - | -47 359 |
| Discontinued operations | - | - | - |
| Total comprehensive income attributable to: | -20 184 118 | -8 484 683 | -20 184 118 |
| Owners of the parent | |||
| Continuing operations | -19 277 055 | -8 484 683 | -27 761 738 |
| Discontinued operations | - | - | 8 484 683 |
| Non-controlling interest | |||
| Continuing operations | -47 359 | - | -47 359 |
| Discontinued operations | - | - | - |
| -19 324 414 | -8 484 683 | -19 324 414 |
In accordance with IFRS 5, all operations of Burger King restaurants in Portugal and Spain were presented under the caption "Income after tax from discontinued operations" of the consolidated income statement for the ninemonth period ended September 30, 2022, the information relating to the nine-month period ended on 30 September 2021 has been restated.
On 30 September 2022, the results of discontinued operations are as follows:
| 30/09/2022 | |
|---|---|
| Sales | -144 181 234 |
| Rendered services | - |
| Cost of sales | 43 604 465 |
| External supplies and services | 32 770 656 |
| Personnel costs | 40 102 924 |
| Amortisation, depreciation and impairment losses of TFA, Rights | |
| of Use, Goodwill and IA | 15 365 850 |
| Other operating gains (losses) | -436 738 |
| Operating Income for continuing operations | -12 774 077 |
| Financial expenses and losses | 3 447 380 |
| Financial income and gains | -613 |
| Gains (losses) in subsidiary, associated and joint controlled subsidiaries | - |
| Profit before tax for continuing operations | -9 327 310 |
| Income tax | 2 060 440 |
| Net profit for continuing operations | -7 266 870 |
On 30 September 2022, the main assets and liabilities of the discontinued activities are as follows:
| 30/09/2022 | |
|---|---|
| Property, plant and equipment | 87 203 131 |
| Rights of use | 63 999 222 |
| Goodwill | 24 641 046 |
| Intangible assets | 9 950 251 |
| Asset deferred tax | 6 153 548 |
| Lease liabilities | -67 787 881 |
| Other net liabilities | -14 614 923 |
| Total Net Assets | 109 544 393 |
| Assets held for sale | 201 468 040 |
| Liabilities directly associated with the assets held for sale | -91 923 647 |
| Total recognized in the Statement of Financial Position | 109 544 393 |
5.1. Revenue from contracts with clients
Revenue is measured by the amount that the entity expects to be entitled to receive under the contract entered into with the customer.
Revenue from contracts with customers is presented as follows:
| 2022 | 2021 | |
|---|---|---|
| Turnover | 254 434 951 | 132 907 011 |
| Restaurant activity sales | 245 901 852 | 126 863 642 |
| Restaurants sales | 232 361 952 | 122 867 888 |
| Event catering sales | 9 541 659 | 2 584 837 |
| Catering sales in concessions | 3 998 241 | 1 410 916 |
| Merchandise sales | 7 037 478 | 5 035 180 |
| Rendered services | 1 495 621 | 1 008 189 |
| Franchised Royalties | 1 354 465 | 936 307 |
| Others | 141 156 | 71 882 |
Restaurants sales in "Discontinued operations" amount to 144 million euros (109 million euros in 30 September 2021).
In 30 September 2022, sales through Aggregator platforms amounted to 25 million Euros (20 million euros in 30 September 2021).
Ibersol Administration monitors the business based on the following segmentation:
| SEGMENT | BRANDS | ||||||
|---|---|---|---|---|---|---|---|
| Restaurants | Pizza Hut Pasta Caffe | Pizza Movil | FresCo | Ribs | StaMaria | ||
| Counters (*) | KFC | O'Kilo | Miit | Burger King | Pans & C.ª | Coffee Counters Taco Bell | |
| Concessions, Travel | |||||||
| and catering | Sol (SA) | Concessions Catering | Convenience stores | Travel |
(*) BURGER King classified in "Discontinued Operations"
| Restaurants | Counters | Concessions, Travel and Catering |
Other, write off and adjustments |
Total Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Sep/22 | Sep/21 | Sep/22 | Sep/21 | Sep/22 | Sep/21 | Sep/22 | Sep/21 | Sep/22 | Sep/21 | |
| Turnover | 75 900 646 52 490 473 | 84 229 556 | 45 827 403 | 94 069 911 34 417 287 | 234 839 | 171 848 | 254 434 951 132 907 011 | |||
| Operating income net of Amortization, deprec. and impairment losses Amortization, depreciation and impairment losses |
-8 151 450 | 14 591 663 10 633 011 | 13 320 580 -8 927 388 -11 300 939 |
6 246 574 -9 787 910 |
12 568 056 | 9 748 705 -5 258 167 -29 638 627 -1 157 082 |
-96 056 | 214 077 -923 202 |
40 384 243 26 842 366 -25 867 638 -49 277 128 |
|
| Operating income | 6 440 213 | 1 705 622 | 2 019 641 | -3 541 336 | 7 309 889 -19 889 923 -1 253 138 | -709 126 | 14 516 605 -22 434 762 | |||
| Financial gains (losses) | -4 894 991 -11 217 282 | |||||||||
| Financial gains (losses) | 18 012 | -38 249 | ||||||||
| Income tax | -2 343 439 | 5 021 492 | ||||||||
| Net profit | 7 296 187 -28 668 801 |
The total assets and liabilities allocated, by segment, are presented as follows:
| 30 SEPTEMBER 2022 | Restaurants | Counters | Concessions, Travel and Catering |
Other, write off and adjustments |
Group |
|---|---|---|---|---|---|
| Assets | 123 800 312 381 012 029 | 99 486 871 | 12 554 827 | 616 854 039 | |
| Liabilities | 46 896 857 179 449 883 | 27 744 726 | 873 154 | 254 964 619 | |
| Net investment in Intangible Assets and Property, Plant and Equipment (Notes 6 and 7) |
-108 943 | 15 542 572 | - | - | 15 433 629 |
Unallocated assets and liabilities arising from investment, financing and tax activities are presented as follows:
| Sep/22 | Dec/21 | |||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Deferred taxes | 5 332 127 | 3 325 930 | 11 088 442 | 3 376 658 |
| Current taxes | 30 325 | 1 441 266 | 110 222 | 456 400 |
| Current bank loans | - | 30 117 135 | - | 26 593 284 |
| Non current bank loans | - | 97 694 343 | - | 140 439 066 |
| Derivative financial instrument | - | 5 896 | - | 18 976 |
| Non-current financial assets | 1 257 761 | - | 978 965 | - |
| Financial investments - joint controlled subsidiaries | 2 958 330 | - | 2 940 318 | - |
| Other financial assets | 2 776 620 | - | 2 179 955 | - |
| Total | 12 355 163 | 132 584 569 | 17 297 902 | 170 884 384 |
| Sep/22 | Dec/21 | ||||
|---|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | ||
| Allocated by segment | 616 854 039 | 254 964 618 | 615 056 529 | 232 806 465 | |
| Not allocated | 12 355 163 | 132 584 569 | 17 297 902 | 170 884 384 | |
| 629 209 202 | 387 549 188 | 632 354 431 | 403 690 849 |
As at 30 September 2022 and 2021 income and non-current assets by geography is presented as follows:
| 30 SEPTEMBER2022 | Portugal | Angola | Spain | Group |
|---|---|---|---|---|
| Turnover | 141 108 766 | 11 301 104 102 025 081 | 254 434 951 | |
| Property, plant and equipment and intangible assets | 109 229 862 | 16 081 751 | 28 631 821 | 153 943 434 |
| Rights of use | 36 854 685 | 541 587 | 40 095 164 | 77 491 436 |
| Goodwill | 6 604 503 | 130 714 | 47 656 558 | 54 391 775 |
| Deferred tax asset | - | - | 5 332 127 | 5 332 127 |
| Financial investments - joint controlled subsidiaries | 2 958 330 | - | 2 958 330 | |
| Non-current financial assets | 857 761 | - | 400 000 | 1 257 761 |
| Other financial assets | - | 1 403 128 | - | 1 403 128 |
| Other non-current assets | - | - | 6 969 534 | 6 969 534 |
| Total non-current assets | 156 505 141 | 18 157 180 129 085 204 | 303 747 524 |
| 30 SEPTEMBER2021 | Portugal | Angola | Spain | Group |
|---|---|---|---|---|
| Turnover | 77 709 351 | 5 961 879 | 49 235 781 | 132 907 011 |
| 31 DECEMBER 2021 | ||||
| Property, plant and equipment and intangible assets | 183 302 165 | 16 913 672 | 50 028 570 | 250 244 407 |
| Rights of use | 76 171 530 | 514 414 | 62 185 207 | 138 871 151 |
| Goodwill | 7 474 768 | 130 714 | 71 427 339 | 79 032 821 |
| Deferred tax asset | 4 899 059 | - | 6 189 382 | 11 088 442 |
| Financial investments - joint controlled subsidiaries | 2 940 318 | - | 2 940 318 | |
| Non-current financial assets | 578 965 | - | 400 000 | 978 965 |
| Other financial assets | - | 841 165 | - | 841 165 |
| Other non-current assets | - | - | 7 524 331 | 7 524 331 |
| Total non-current assets | 275 366 805 | 18 399 965 197 754 830 | 491 521 600 |
During the nine month period ended on 30 September 2022, rights of use, as well as in the respective accumulated amortizations and impairment losses, were as follows:
| Stores and Commercial |
|||||
|---|---|---|---|---|---|
| Spaces | Buildings | Equipment | Other assets | Total | |
| 1 January 2022 | |||||
| Initial net amount | 128 125 587 | 5 881 809 | 4 496 619 | 367 138 | 138 871 152 |
| Currency conversion | 282 552 | - | - | - | 282 552 |
| Increases | 20 641 709 | 103 224 | 1 017 877 | 62 618 | 21 825 428 |
| Decreases | -214 490 | - | - | - | -214 490 |
| Depreciation in the year | -16 857 837 | -1 403 296 | -955 344 | -57 507 | -19 273 984 |
| Discontinued operations | -62 200 173 | -35 899 | -1 599 616 | -163 534 | -63 999 221 |
| Final net amount | 69 777 348 | 4 545 839 | 2 959 537 | 208 715 | 77 491 436 |
| 30 September 2022 | |||||
| Cost | 118 936 212 | 14 667 646 | 6 277 286 | 345 668 | 140 226 812 |
| Accumulated depreciation | -49 158 866 | -10 121 808 | -3 317 750 | -136 953 | -62 735 377 |
| Net amount | 69 777 348 | 4 545 839 | 2 959 537 | 208 715 | 77 491 436 |
The value of the increases corresponds to 16 new leases (11 of spaces and 5 of equipment), 5 renovations and 27 extensions of space leases and also the effect of remeasurement of contracts by the rent updates by the Consumer Price Index and other changes to expected lease payments (e.g. in cases of lease term reassessment).
The decrease in depreciation is due to the leasing contracts of the Airports in Spain, which in 2021 were being considered as a result of the application of IFRS16.
During the nine month period ended 30 September 2022, property, plant and equipment, as well as in the respective depreciation and accumulated impairment losses, were as follows:
| Other property, plant |
Property, plant and equipment |
|||||
|---|---|---|---|---|---|---|
| Land | Buildings | Equipment | and equipment | in progress | Total | |
| 1 January 2022 | ||||||
| Initial net amount | 19 497 339 | 153 238 101 | 31 204 592 | 9 664 958 | 768 719 | 214 373 711 |
| Currency conversion | 444 409 | 283 292 | -85 726 | -46 529 | 1 524 | 596 970 |
| Charge-off | 1 898 548 | 10 383 675 | 4 675 585 | 2 490 847 | 726 716 | 20 175 372 |
| Decreases | - | -622 406 | -82 240 | -23 084 | 8 979 | -718 750 |
| Transfers | - | 205 409 | 96 406 | 3 649 | -300 468 | 4 996 |
| Depreciation in the year | -39 720 | -10 866 130 | -6 438 442 | -1 904 266 | - | -19 248 558 |
| Discontinued operations | - | -67 363 087 | -13 830 364 | -5 993 522 | -16 158 | -87 203 132 |
| Final net amount | 21 800 576 | 85 258 854 | 15 539 811 | 4 192 053 | 1 189 312 | 127 980 603 |
| 30 September 2022 | ||||||
| Cost | 22 241 394 | 197 845 319 | 102 622 122 | 21 359 506 | 1 189 312 | 345 257 653 |
| Accumulated depreciation | -431 817 -101 793 714 | -86 327 030 | -17 116 097 | - | -205 668 659 | |
| Accumulated impairment | -9 000 | -10 792 751 | -755 280 | -51 359 | - | -11 608 390 |
| Net amount | 21 800 576 | 85 258 854 | 15 539 811 | 4 192 053 | 1 189 312 | 127 980 603 |
The investment incurred in the first nine months of 2022 refers, essentially, to the opening of five KFC, two Burger King, two Pizza Hut, two Pans and one Taco Bell.
Goodwill and intangible assets are broken down as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Goodwill | 54 391 775 | 79 032 821 |
| Intangible assets | 25 962 831 | 35 870 696 |
| 80 354 606 | 114 903 517 |
During the nine month period ended 30 September, intangible assets, amortization and accumulated impairment losses were as follows:
| Goodwill | Brands | Industrial property |
Other intangible Assets |
Intangible Assets in progress |
Total | |
|---|---|---|---|---|---|---|
| 1 January 2022 | ||||||
| Initial net amount | 79 032 821 16 316 667 | 16 912 142 | 1 411 652 | 1 230 241 | 114 903 517 | |
| Currency conversion | - | - | 7 977 | - | 56 851 | 64 828 |
| Charge-off | - | - | 1 054 427 | 897 927 | 898 514 | 2 850 868 |
| Decreases | - | - | -123 386 | - | 86 362 | -37 024 |
| Transfers | - | - | 43 181 | -5 000 | -43 181 | -5 000 |
| Amortization in the year | - | -825 000 | -1 769 364 | -236 920 | - | -2 831 284 |
| Impairment in the year | - | - | - | - | - | - |
| Discontinued operations | -24 641 046 | - | -8 827 114 | -468 308 | -654 832 | -34 591 300 |
| Final net amount | 54 391 775 15 491 667 | 7 297 863 | 1 599 351 | 1 573 955 | 80 354 606 | |
| 30 September 2022 | ||||||
| Cost | 69 343 638 22 000 000 | 39 360 912 | 11 837 603 | 1 573 955 | 144 116 108 | |
| Accumulated amortization | - | -6 508 333 | -27 734 769 | -10 205 956 | - | -44 449 058 |
| Accumulated impairment | -14 951 863 | - | -4 328 280 | -32 296 | - | -19 312 439 |
| Net amount | 54 391 775 15 491 667 | 7 297 863 | 1 599 351 | 1 573 954 | 80 354 606 |
Intangible assets in progress mostly relate to territorial rights to open units still under construction, which are paid in advance to brands at the time when joint agreements are made to open units between Ibersol and the franchisors.
Goodwill is allocated to each of the groups of homogeneous cash-generating units as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Restaurants | 7 147 721 | 7 147 721 |
| Counters | 12 558 945 | 37 199 991 |
| Concessions, Travel and Catering | 34 505 388 | 34 505 388 |
| Other, write off and adjustments | 179 721 | 179 721 |
| 54 391 775 | 79 032 821 |
Regarding the above segments, the following groups of homogeneous cash-generating units were identified:
| Sep/22 | Dec/21 | ||
|---|---|---|---|
| Restaurants | |||
| Ribs | 5 175 479 | 5 175 479 | |
| Pizza Hut | 1 972 242 | 1 972 242 | |
| Sub-total | 7 147 721 | 7 147 721 | |
| Counters | |||
| Pans & C.º | 11 850 160 | 11 850 160 | |
| Burguer King | - | 24 641 046 | |
| KFC | 708 785 | 708 785 | |
| Sub-total | 12 558 945 | 37 199 991 | |
| Concessions, Travel and Catering | |||
| Concessions and Travel (SP) | 30 630 919 | 30 630 919 | |
| Concessions and Travel (PT) | 850 104 | 850 104 | |
| Catering | 3 024 365 | 3 024 365 | |
| Sub-total | 34 505 388 | 34 505 388 | |
| Others | 179 721 | 179 721 | |
| TOTAL | 54 391 775 | 79 032 821 |
The amount of financial assets refers to investments in Angolan State Treasury Bonds. The separation by maturity is as follows:
| Sep/22 | Dec/21 | |||||
|---|---|---|---|---|---|---|
| Non | Non | |||||
| Current | current | Total | Current | current | Total | |
| Treasury bonds | 1 393 418 | 1 423 484 | 2 816 902 | 1 429 154 | 968 215 | 2 397 368 |
| Sub-total | 1 393 418 | 1 423 484 | 2 816 902 | 1 429 154 | 968 215 | 2 397 368 |
| Accumulated impairment losses | 19 926 | 20 356 | 40 282 | 90 363 | 127 050 | 217 413 |
| TOTAL | 1 373 492 | 1 403 128 | 2 776 620 | 1 338 791 | 841 165 | 2 179 955 |
As there was no significant increase in credit risk since the initial recognition of Treasury Bonds, expected losses within a period of 12 months were considered.
Indices used for Probability of Default and Loss Given Default are in accordance with the publication of Moodys and S&P, the probability of default considered was 2.4% and the loss given default considered to be 59%.
Treasury bond securities held by the group on 30 September 2022 with a maturity of more than 12 months are as follows:
| Non-current | |||
|---|---|---|---|
| Issue date | 31/08/2017 | 31/07/2020 | 14/03/2022 |
| Acquisition date | 06/05/2021 | 24/11/2021 | 06/09/2022 |
| Due date | 31/08/2024 | 31/07/2024 | 14/03/2024 |
| BNA exchange rate | 645 | n/a | n/a |
| Amount | 250 | 1 000 | 2 000 |
| Amount as at 30/09/2022 | 399 902 | 205 927 | 497 148 |
| Gross annual return | 7% | 16,50% | 16,50% |
| Non-current | TOTAL | ||
| Issue date | 31/07/2020 | 15/03/2019 | - |
| Acquisition date | 19/09/2022 | 21/09/2022 | - |
| Due date | 31/07/2024 | 15/03/2024 | - |
| BNA exchange rate | n/a | 424 | - |
| Amount | 1 000 | 55 | - |
| Amount as at 30/09/2022 | 247 721 | 72 787 | 1 423 484 |
| Gross annual return | 16,50% | 5,00% | - |
Treasury bond securities held by the group as at 30 September 2022 with a maturity of less than 12 months are presented as follows:
| 26/10/2017 | 16/04/2021 | 28/02/2019 |
|---|---|---|
| 07/04/2021 | 25/05/2021 | 05/05/2021 |
| 26/10/2022 | 16/10/2022 | 28/02/2023 |
| n/a | n/a | n/a |
| 600 | 2 000 | 1 000 |
| 129 346 | 467 904 | 225 398 |
| 12% | 15,75% | 16,5% |
| TOTAL | ||
| 08/07/2020 | 21/04/2021 | - |
| 25/05/2021 | 04/10/2021 | - |
| 08/07/2023 | 21/04/2023 | - |
| n/a | n/a | - |
| 1 350 | 1 200 | - |
| 299 385 | 271 384 | 1 393 418 |
| 16,25% | 16% | - |
Other non-current assets breakdown is presented as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Other non-current assets | 6 969 534 | 7 524 331 |
| 6 969 534 | 7 524 331 |
Balance of other non-current debtors is mainly comprised of deposits and securities in Spain resulting from lease agreements. Trade accounts receivable from other debtors are initially recognized at fair value and, in the case of medium and long-term debt, are subsequently measured at amortized cost using the effective interest method, less impairment.
The Group considers that this asset is not exposed to significant credit risk, since in general these assets are directly associated with rent payment obligations.
These guarantees may be enforced by the beneficiaries in the event of breach of contract by Ibersol, for example in cases where the rent is not paid.
As at 30 September 2022 and 31 December 2021, Cash and cash equivalents were as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Cash | 1 173 232 | 1 029 212 |
| Bank deposits | 84 133 530 | 95 938 291 |
| Treasury applications | 500 | 500 |
| Cash and bank deposits in the balance sheet | 85 307 262 | 96 968 003 |
| Bank overdrafts | - | - |
| Cash and cash equivalents in the cash flow statement | 85 307 262 | 96 968 003 |
As at 30 September 2022 and 31 December 2021, Other current assets were as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Clients | 7 405 736 | 6 369 453 |
| State and other public entities | 2 543 743 | 5 803 060 |
| Other debtors (1) | 7 931 843 | 10 895 308 |
| Advances to suplliers | 363 481 | 202 341 |
| Advances to fixed suppliers | 1 197 893 | 225 008 |
| Accruals and income | 2 834 440 | 4 386 985 |
| Deferred costs | 1 793 458 | 1 698 608 |
| Other current assets | 24 070 594 | 29 580 764 |
| Accumulated impairment losses | -2 842 360 | -2 882 406 |
| 21 228 234 | 26 698 358 |
Clients balance, related to supplies to franchisees and catering contracts, reflects the growth in activity in the second quarter of 2022.
(1) As at 30 September 2022 and 31 December 2021, the balance in Other debtors includes aggregators, other debtor balances from suppliers c/c, debts to suppliers for the recovery of charges for marketing and rappel co-payments, meal vouchers (delivered by customers), short-term bails and various advances, as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Meal card/Aggregators | 1 920 661 | 3 939 484 |
| Deposits and bails | 3 015 295 | 2 611 543 |
| Marketing and rappel | 467 435 | 2 244 102 |
| Suppliers and other debit balances | 1 574 540 | 1 674 746 |
| Advances | 126 598 | 136 857 |
| Personnel expenses | 130 940 | 79 559 |
| Credit sales | 599 444 | 69 143 |
| Insurance | 2 850 | 68 692 |
| IEFP | 3 210 | 43 708 |
| Continente card | 90 868 | 27 475 |
| 7 931 843 | 10 895 308 |
As at 30 September 2022 and 31 December 2021, current and non-current loans were as follows:
| Non-current | Sep/22 | Dec/21 |
|---|---|---|
| Bank loans | 59 144 343 | 75 839 066 |
| Commercial paper programmes | 38 550 000 | 64 600 000 |
| 97 694 343 | 140 439 066 | |
| Current | Sep/22 | Dec/21 |
| Bank overdrafts | - | - |
| Bank loans | 14 980 741 | 13 325 470 |
| Commercial paper programmes | 15 136 394 | 13 267 814 |
| 30 117 135 | 26 593 284 | |
| Total loans | 127 811 478 | 167 032 350 |
Movements in 30 September 2022 and 31 December 2021 in current and non-current loans, except financial leases and bank overdrafts, are as follows:
| set/22 | Dec/21 | |
|---|---|---|
| 1st January | 167 032 350 | 165 068 581 |
| Variations with impact on cash flows: | ||
| Loan receipts obtained | 3 304 795 | 34 298 753 |
| Financial debt payments | -42 750 491 | -32 227 604 |
| Variations without impact on cash flows: | ||
| Variation effect of bank overdrafts | - | -916 |
| Financing assembly costs | -64 899 | -344 259 |
| Capitalized interest and others | 289 723 | 237 793 |
| 127 811 478 | 167 032 350 |
As at 30 September 2022 and 31 December 2021, the company has commitments made to third parties, arising from lease contracts, namely real estate contracts. The breakdown of future payments of lease payments, given their maturity, can be analyzed as follows:
| set/22 | dez/21 | ||||||
|---|---|---|---|---|---|---|---|
| Current | Non-current | Total | Current | Non-current | Total | ||
| Leases | 20 626 726 | 58 691 735 | 79 318 461 | 21 645 649 | 121 422 685 | 143 068 334 | |
| TOTAL | 20 626 726 | 58 691 735 | 79 318 461 | 21 645 649 | 121 422 685 | 143 068 334 |
The movements in the first 9 months 2022 in liabilities with leases are presented as follows:
| set/22 | Dec/21 | |
|---|---|---|
| 1st January | 143 068 334 | 329 014 533 |
| Discontinued operations | -67 515 519 | |
| Variations with impact on cash flows: | ||
| Financial debt payments | -15 811 798 | -34 031 830 |
| Variations without impact on cash flows: | ||
| Update of liabilities with leases | 3 127 835 | 13 361 651 |
| Lease contract increases | 16 515 995 | 35 106 030 |
| Contract terminations / store closings | -49 023 | -276 893 |
| Write-off Liabilities lease contracts AENA (1) | - | -195 183 511 |
| Income concessions resulting from the COVID-19 pandemic | -285 323 | -4 681 174 |
| Others | 267 960 | -240 474 |
| 79 318 461 | 143 068 335 |
(1) Referring to October 1, 2021 the debt of concession contracts at airports in Spain managed by AENA was derecognised, pursuant to the application of Law 13/2021 (introductory note). This diploma determines the reduction of the minimum guaranteed annual rents of the contracts, in direct proportion to the reduction of annual passenger traffic compared to those verified in 2019, until the annual volume of passengers at the airport resumes the traffic of the same year, thus making it impossible for the future responsibilities of these same contracts are determined.
During the first six months of 2022, the Group obtained discounts on rent payments that led to the respective decrease in liabilities without outflow of funds.
As at 30 September 2022 and 31 December 2021, accounts payable to suppliers and accrued costs were broken down as follows:
| Sep/22 | Dec/21 | ||
|---|---|---|---|
| Suppliers c/ a | 32 810 640 | 38 501 025 | |
| Suppliers - invoices pending approval | 6 585 755 | 3 196 603 | |
| Suppliers of fixed assets c/ a | 2 471 704 | 10 063 593 | |
| Total accounts payable to suppliers | 41 868 099 | 51 761 221 |
| Sep/22 | Dec/21 | |
|---|---|---|
| Accrued costs - Payable insurance | 65 860 | 108 056 |
| Accrued costs - Payable remunerations | 8 307 844 | 8 987 232 |
| Accrued costs - Rent and lease (1) | 8 539 369 | 5 583 055 |
| Accrued costs - External services | 5 885 102 | 5 583 485 |
| Accrued costs - Other | 534 978 | 484 342 |
| Total acrrued costs | 23 333 153 | 20 746 170 |
| Total accounts payable to suppl.and accrued costs | 65 201 253 | 72 507 391 |
(1) accrued costs- rent and lease include only the amount related to variable rents that are not included in the lease liability.
As at 30 September 2022 and 31 December 2021, "Other current liabilities" may be broken down as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Other creditors | 7 254 263 | 5 536 323 |
| State and other public entities | 7 146 068 | 8 480 036 |
| Deferred income | 1 806 589 | 782 182 |
| 16 206 920 | 14 798 541 |
As at 30 September 2022, income tax receivable amounts to 30,325 Euros (2021: 110,222 Euros), presented as follows:
| Sep/22 | Dec/21 | ||
|---|---|---|---|
| Inverpeninsular Group (1) | 25 817 | 35 614 | |
| Ibersol Angola | - | 70 100 | |
| Others | 4 508 | 4 508 | |
| 30 325 | 110 222 |
(1) tax amount resulting from the tax group of subsidiaries in Spain.
Income tax payable in the periods ended 30 September 2022 and 31 December 2021 is broken down as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| RETGS (1) | 1 210 343 | 444 395 |
| Ibersol Angola | 230 923 | - |
| Others (2) | - | 12 006 |
| 1 441 266 | 456 400 |
(1) amount of tax resulting from the tax group of subsidiaries in Portugal (RETGS).
(2) excluded from RETGS, income tax to be paid by subsidiary Iberusa ACE.
Changes in deferred taxes in the period are:
| 30.09.2022 | 31.12.2021 | Movement in the year (1) |
|---|---|---|
| 5 332 127 | 11 297 619 | -5 965 492 |
| - | -6 408 005 | 6 408 005 |
| -3 325 930 | -3 376 658 | 50 728 |
| 2 006 197 | 1 512 956 | 493 241 |
(1) tax for the year in the amount of 205,055 euros (note 20) and 288,186 euros of currency exchange conversion recognized in reserves.
Nominal tax rates of the jurisdictions in which the Group is present are as follows:
| Portugal | 21% |
|---|---|
| Spain | 25% |
| Angola | 25% |
As at 30 September 2022 and 31 December 2021 deferred tax assets on, according to jurisdiction and the temporary differences that generate them, are broken down as follows:
| Sep/22 | Dec/21 | |||
|---|---|---|---|---|
| Deferred tax assets | Spain | Portugal | Spain | Total |
| Tax losses carried forward | 6 809 771 | - | 7 005 961 | 7 005 961 |
| Ded. temporary differences (IFRS16) (1) | 619 406 | - | 744 265 | 744 265 |
| Taxable temporary differences | -1 572 089 | -33 859 | -1 572 089 | -1 605 947 |
| Homogenization of property, plant and equipment and intangible assets (2) |
-1 188 793 | -5 065 885 | -677 689 | -5 743 575 |
| Other temporary differences deductible and tax credits |
663 832 | 9 998 803 | 688 934 10 687 737 | |
| 5 332 127 | 4 899 059 | 6 189 382 11 088 442 |
(1) deferred taxes resulting from a temporary difference due to the application of IFRS16 in the Group's consolidated accounts, not applicable in the statutory accounts of subsidiaries in Spain.
(2) deferred taxes that correspond to the difference in the net amount considered in the individual financial statements of the subsidiaries and the net amount to which they contribute in the consolidated financial statements.
As at 30 September 2022 and 31 December 2021, Deferred tax liabilities, according to jurisdiction and the temporary differences that generated them, are broken down as follows:
| Dec/21 | ||||
|---|---|---|---|---|
| Deferred tax liabilities | Portugal | Sep/22 Angola |
Total | Angola |
| Homogenization of property, plant and equipment and intangible | ||||
| assets (1) | 4 029 278 | -893 311 | 3 135 967 | -450 931 |
| Hyperinflationary Economies (IAS 29) | - | 3 818 974 | 3 818 974 | 3 927 202 |
| Deductible temporary differences (IFRS16) | - | -64 944 | -64 944 | -45 259 |
| Other temporary differences (2) | -3 553 997 | -10 071 | -3 564 068 | -54 354 |
| 475 282 | 2 850 647 | 3 325 929 | 3 376 657 |
(1) deferred taxes corresponding to the difference of the net value as in the individual financial statements of the subsidiaries and the net amount that they contribute in the consolidated.
(2) amount referring, essentially to tax benefits. As at 31 December 2021, there are 147,000 euros of tax benefit associated with the capital increase and 3,439,529 euros of tax benefits not deducted, to be used in subsequent years, of which 708,969 euros of RFAI for 2020, 1,741,711 euros of 2021 RFAI, 988,849 euros from CFEI II (661,333 euros deductible until 2025 and 327,516 euros until 2026, inclusive). It should be noted that these credits have a reporting period of 10 tax periods, a period whose count was suspended during 2020 and during the following tax period, according to Law No. 21/2021, of 21 of April
Other operating and income costs in the nine months periods ended 30 September 2022 and 30 September 2021 are broken down as follows:
| Other operating costs | 2022 | 2021 | |
|---|---|---|---|
| Direct/indirect taxes not assigned to operating activities | 518 506 | 473 850 | |
| Losses in fixed assets | 100 050 | 595 441 | |
| Currency exchange differences | 771 045 | 407 805 | |
| Membership fees, donations samples and inventory offers | 83 641 | 54 970 | |
| Impairment adjustments (debts receivable) | 189 116 | 271 536 | |
| Inventories break | 5 842 | - | |
| Other operating costs | 119 583 | 142 691 | |
| 1 787 783 | 1 946 293 | ||
| Other operating income | 2022 | 2021 | |
| Supplementary income (1) | 3 270 728 | 2 224 508 | |
| Operating grants (2) | 53 801 | 5 522 973 | |
| Currency exchange differences | 1 095 653 | 312 542 | |
| Compensation (3) | 2 618 320 | 260 000 | |
| Gains in fixed assets | 19 718 | 10 772 | |
| Provision reduction | 60 700 | - | |
| Investment grants | 24 581 | 21 451 | |
| Other operating gains | 72 504 | 106 093 | |
| 7 216 005 | 8 458 339 | ||
| Other operating income / (costs) | 5 428 222 | 6 512 046 |
(1) arise essentially from revenue from contracts with suppliers and franchisees (Eat Out group);
(2) amount referring, essentially, to government support within the scope of Covid-19;
(3) resulting from the compensation agreement associated with the purchase of the EatOut group in Spain, in the amount of 2 million euros, and compensation for the insurance related to the fire at Alicante airport.
Financial expenses and losses in the nine months periods ended 30 September 2022 and 30 September 2021 are broken down as follows:
| Financial expenses and costs | 2022 | 2021 |
|---|---|---|
| Interest on rentals liabilities (IFRS16) | 3 127 835 | 9 004 333 |
| Interest paid | 1 639 607 | 1 654 200 |
| Other financial expenses and costs | 972 139 | 1 000 178 |
| 5 739 581 | 11 658 711 |
The reduction in interest on lease liabilities is due to the interest related to lease contracts for restaurants and retail establishments located at airports in Spain, which in 2021 were being considered as a result of the application of IFRS16.
Financial income and gains in the nine months periods ended 30 September 2022 and 30 September 2021 are broken down as follows:
| Financial income and gains | 2022 | 2021 |
|---|---|---|
| Interest earned (1) | 542 891 | 357 196 |
| Other financial income and gains | 301 699 | 84 233 |
| 844 590 | 441 429 |
(1) essentially interest on treasury bonds and term deposits.
Income tax recognised in the nine months periods ended on 30 September 2022 and 2021 are broken down as follows:
| set/22 | set/21 | |
|---|---|---|
| Imposto corrente | 2 543 108 | 65 730 |
| Insuficência (excesso) de estimativa de imposto | 5 386 | -224 427 |
| Imposto diferido | -205 055 | -4 862 795 |
| 2 343 439 | -5 021 492 |
The effective tax rate on profits is presented as follows:
| Sep/22 | Sep/21 | ||
|---|---|---|---|
| Profit before tax | 9 639 626 | -33 690 293 | |
| Income tax expense | -2 343 439 | 5 021 492 | |
| Effective tax rate | 24% | -15% | |
Income per share in the nine months periods ended 30 September 2022 and 2021 was calculated as follows:
| 2022 | 2021 | |
|---|---|---|
| Number of shares for purposes of calculating basic and diluted net income | 42 400 019 | 32 400 019 |
| Income from continuing operations for the purpose of calculating earnings per share | 7 296 187 | -28 668 801 |
| Income from discontinued operations for the purpose of calculating earnings per share | 7 266 870 | 8 484 683 |
| Earnings per share: | ||
| From continuing operations | ||
| Basic | 0,17 | -0,88 |
| Diluted | 0,17 | -0,88 |
| From discontinued operations | ||
| Basic | 0,17 | 0,26 |
| Diluted | 0,17 | 0,26 |
Since there are no potential voting rights, the basic earnings per share is equal to earnings diluted per share.
At the Annual General Meeting of 26 May 2022, gross dividends of 0.135 euros per share were attributed, corresponding to a value of 5,724,002 euros for shares in circulation, which payment was made on 22 June 2022.
The Group has contingent liabilities related to its business (related to licensing, advertising fees, hygiene and food safety and employees, the success rate of Ibersol in these processes being historically high). It is not expected that there will be significant liabilities arising from contingent liabilities.
An indemnity proceeding was brought against a subsidiary of the Eat Out Group in Spain for alleged noncompliance with non-compete agreements in the amount of approximately 11.7 million Euros. The Board of Directors, supported by the position of the lawyers who accompany the process, considers that this situation represents a contingent liability. Additionally, it should be noted that the process concerns facts that occurred before the acquisition of this subsidiary by the Ibersol Group, and is therefore, under the liability and guarantees clauses provided for in the share purchase and sale agreement of the Eat Out Group, there is a right of return.
As at 30 September 2022 and 31 December 2021, liabilities not recorded by Ibersol's subsidiaries are mainly made up of bank guarantees provided on their account, as follows:
| Sep/22 | Dec/21 | |
|---|---|---|
| Bank guarantees | 25 198 725 | 24 929 721 |
Bank guarantees by hedge type are as follows:
| Leases and rents |
Other supply contracts |
Other | Other legal claims |
||
|---|---|---|---|---|---|
| 25 082 181 | 20 683 | 67 131 | 8 000 | 20 731 |
The bank guarantees essentially arise from the concessions and rents of the Group's stores and commercial spaces, and can be executed in the event of non-compliance with the lease contracts, namely due to non-payment of rents.
The relevant amount comes from the guarantees required by the owners of spaces concession (ANA Airports and AENA Airports in Spain) or leased (shopping centres and other places) under concessions and rents, which amounts to 20,216,000 Euros with AENA Airports.
Balances and transactions with related parties as at 30 September 2022 and 31 December 2021, can be presented as follows:
| Jointly controlled | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Parent entitie | entitie | Associated entitie | Other entities | ||||||
| 3ºT 2022 | 2021 | 3ºT 2022 | 2021 | 3ºT 2022 | 2021 | 3ºT 2022 | 2021 | ||
| Supplies and services |
750 006 | 1 000 000 | 2 560 076 | 4 174 391 | - | - | - | - | |
| Rental lease | - | - | - | - | - | - | 1 660 148 | 2 200 946 | |
| Accounts Payable |
- | - | 1 497 729 | 1 395 331 | - | - | - | - | |
| Financial investments |
- | - | - | - | 300 000 | 300 000 | - | - | |
| Other financial assets |
- | - | - | - | - | - | 400 000 | 400 000 |
The parent company of Ibersol SGPS S.A. is ATPS - SGPS, SA, holder directly and indirectly of 26.004.023 shares.
Dr. António Carlos Vaz Pinto de Sousa and Dr. António Alberto Guerra Leal Teixeira each hold, respectively, 3,495 and 3,314 shares of Ibersol SGPS, SA The voting rights attributable to ATPS are also attributable to António Carlos Vaz Pinto de Sousa and António Alberto Guerra Leal Teixeira according to paragraph 1.b) Article 20, and paragraph 1 Article 21, both of the Portuguese Securities Market Code, by holding the domain of ATPS, in which they participate indirectly in equal parts by their companies, respectively, the companies CALUM - SERVIÇOS E GESTÃO, S.A. with NIPC 513799486 and DUNBAR - SERVIÇOS E GESTÃO, S.A. with NIPC 513799257, which, jointly, hold the majority of the share capital of ATPS.
The other entities refer to entities controlled by other holders of significant influence in the parent company of Ibersol Group.
Following the signature, on 02 August 2022, of the share purchase and sale agreement regarding the sale to BK Portugal, S.S. and Burger King Spain, S.L.U (companies controlled by Restaurant Brands Iberia, S.A.) of the shares representing the entire share capital, respectively of Iberking, Restauração S.A. and Lurca S.A.U, on 16 November 2022, the suspensive conditions provided for in said contract were verified or waived.
Subject to the terms and conditions set out in the purchase and sale agreement, completion of the transaction is scheduled for 30 November 2022.
As in Note 4, these consolidated interim accounts show the net value of assets to be discontinued.
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