Th International Limited ( (THCH) ) has released its Q3 earnings. Here is a breakdown of the information Th International Limited presented to its investors.
TH International Limited, known as Tims China, is the exclusive operator of Tim Hortons coffee shops in China, focusing on offering coffee and related products through a rapidly expanding franchise network.
In its third-quarter report for 2024, Tims China highlighted a positive shift in its financial performance, achieving its highest-ever company-owned and operated store contribution margin and maintaining positive adjusted corporate EBITDA for the second consecutive quarter, despite a competitive market landscape.
Key financial metrics showed a decline in total revenues by 17.1% year-over-year, primarily due to the closure of underperforming stores and a decrease in same-store sales. However, the company improved its adjusted corporate EBITDA to a gain of RMB2.0 million from a previous loss, and the company-owned store contribution margin increased by 5.8 percentage points to 13.3%. Strategic efforts included expanding its franchise operations and implementing cost-saving measures, which led to a significant reduction in food, labor, and other operating expenses.
Tims China’s management remains focused on refining store economics, enhancing brand value, and expanding its franchise network. The company aims to drive further efficiencies and maintain profitability by optimizing supply chain operations and collaborating closely with sub-franchisees.
Looking forward, Tims China is committed to sustaining profitable growth by leveraging its product differentiation strategy and enhancing customer value offerings, with a continuous focus on operational improvements and market expansion.
