ANNUAL REPORT 2016
Outlook
The recently approved State Budget points towards an improvement in domestic
demand and, as far as Ibersol concerned, introduced a new tax on the sale of
sugary drinks.
While maintaining positive signs of consumption growth, a slight deceleration
in the sales growth trend, already evident in 2016, is expected, with margins
remaining steady, without considering the effect of the change in the VAT rate
in Portugal, which occurred in the beginning of the second semester of last year.
Regarding funding, the recovery difficulties faced by European economies are
likely to lead to a delay in the normalisation of monetary policy, resulting in the
expected maintenance of interest rates at low levels.
In Angola, the development of the business is closely linked to oil price trends,
which has developed positively. The pressure facing the Angolan currency indica-
tes that the devaluation scenario will continue in 2017, especially after the end
of the electoral period, and that the difficulties of payments abroad will soften.
Regarding expansion, we will continue to look out for opportunities to streng-
then the competitive position of the brands that we operate. We expect Ibersol
to finalize the opening of 18 restaurants and to continue the programme to
remodel around 10 units, in adition to the gradual conversion of Pizza Móvil
into Pizza Hut units.
In Spain, the conversion of Pizza Móvil units to Pizza Hut started last March,
with the opening of 3 units. After completing the evaluation of the change, the
next steps will be decided.
As far as Eat Out Group is concerned, ended on April 10 the deadline for sub-
mitting proposals to the Barcelona contest, whose decision is expected in the
second half. Simultaneously several contests will be opened in different airports,
Madrid, Malaga and the Canary Islands.
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