The MTY Food Group has reported net income attributable to owners of $17.3m for the first quarter of the fiscal year 2024, down 6% compared to $18.4m a year previously.

For the quarter ended 29 February 2024, the company’s revenue declined 3% to $278.6m from $286m a year previously.

The decline resulted from fewer recurring revenue streams that were tightly correlated to reduced system sales.

In the latest quarter, the company’s system sales declined 2% to $1.33bn from $1.36bn in the first quarter (Q1) of the fiscal year 2023.

System sales decreased 2% in Canada and 3% in the US, while International sales remained stable.

Its normalised adjusted earnings before interest, taxation, depreciation and amortisation in the latest quarter decreased by 7% to $59.5m, down from $64m in Q1 of the previous year.

The MTY Food Group noted that it ended the quarter with 7,112 locations compared to 7,116 locations in Q4 of the fiscal year 2023.

MTY Food Group CEO Eric Lefebvre said: “Following two years of strong system sales growth amid a challenging economic environment, first-quarter results were adversely affected by reduced consumer spending and extreme weather, primarily in the first 6 weeks of 2024.

“Despite slightly slower sales, we generated the highest operating cash flows in our history in the first quarter, enhancing our ability to reimburse debt and build a treasure chest for future growth opportunities.”