TH International Limited (NASDAQ:THCH) Q2 2024 Earnings Call Transcript August 29, 2024 8:00 AM ET

Company Participants

Gemma Bakx - IR
Yongchen Lu - CEO and Director
Albert Li - CFO

Conference Call Participants

Steve Silver - Argus Research Corporation

Operator

Ladies and gentlemen, welcome to the Tims China's Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode during management's prepared remarks and then will be question-and-answer session to follow. Today's conference is being recorded. At this time, I would like to turn the call over to Gemma Bakx, who heads Tims China's Investor Relations efforts, for prepared remarks and instructions. Please go ahead, Gemma.

Gemma Bakx

Thank you very much, Nadia. Good morning, and good evening, everyone, and thank you for joining us on today's call. My name is Gemma Bakx, Head of Investor Relations at Tims China. And we're announcing second quarter results earlier -- we announced it earlier today. The press release as well as an accompanying presentation, which contains operational and financial highlights are now available on the company's IR website at ir.timschina.com. Today, you will hear from Yongchen Lu, our CEO and Director and Albert Li, our CFO. After the company's prepared remarks, the management team will conduct a question-and-answer session. You can find the webcast of today's earnings call on our IR site.

Now before we get started, I'd like to remind you that our earnings presentation and investor materials contain forward-looking statements, and they are subject to future events and uncertainties. Statements that are not historical facts, including, but not limited to, statements about the company's beliefs and expectations are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties and our actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release with risk factors included in our filings with the SEC.

This presentation also includes certain non-GAAP financial measures, which we believe can be helpful in evaluating our performance. However, those measures should not be considered as substitutes for the comparable GAAP measures. The accompanying reconciliation information related to those non-GAAP and GAAP measures can be found in our earnings press release issued earlier today.

With all that said, I'd like now to turn it over to Yongchen Lu, our CEO and Director. Please go ahead, Yongchen.

Yongchen Lu

Thank you, Gemma. Good morning and good evening, everyone. I'm Yongchen Lu, CEO and Director of Tims China. The second quarter of 2024 represents a significant milestone for our company as we achieved adjusted corporate EBITDA profitable for the first time in our corporate history. This result was driven by an intense focus on our core strength of delivering guests, great value for money products and our differentiated fresh food offering coupled with continuous improvements in operational efficiency. This important milestone comes as we deliver our highest-ever adjusted EBITDA margin of 10.3%.