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Burger King India Q4 net loss narrows to Rs 26 cr

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Capital Market
Last Updated : May 27 2021 | 12:51 PM IST

On a standalone basis, Burger King India's net loss stood at Rs 25.94 crore in Q4 FY21 compared with net loss of Rs 37.41 crore in Q4 FY20.

Net sales rose 2.6% to Rs 196.05 crore in Q4 FY21 over Q4 FY20. Pre-tax loss stood at Rs 25.94 crore in Q4 FY21, lower than pre-tax loss of Rs 37.41 crore in Q4 FY20.

Restaurant EBITDA slipped 1.8% to Rs 14.11 crore in Q4 March 2021 as compared to Rs 14.37 crore in Q4 March 2020. The Restaurant EBITDA was driven by gross margin improvement and operating cost optimisations. Restaurant EBITDA margin was at 7.2% in Q4 FY21 over 8.8% in Q4 FY20. Reported EBITDA grew 2.1% to Rs 24.59 crore in Q4 March 2021 as against Rs 24.09 crore in Q4 March 2020. Reported EBITDA margin stood at 12.5% in Q4 FY21 over 14.8% in Q4 FY20.

During the financial year, Burger King India's standalone net loss stood at Rs 173.91 crore in FY21 compared with net loss of Rs 76.57 crore in FY20. Net sales slumped 41.22% to Rs 494.45 crore in FY21 over FY20.

As of 31 March 2021, Burger King India had 265 stores. In Q4 FY21, the fast-food chain opened 1 and closed 6. While in FY21, the firm made a net addition of 5 stores (opened 16 and closed 11). The stores were closed on account of non-performing stores and relocation. The company is on track to deliver 320 restaurants by FY22 with 38 restaurants under construction/pipeline. The Burger King (BK) app delivery revenue grew 200% Q-o-Q (quarter-on-quarter) in Q4 March 2021 from Q3 December 2020.

The Same Store Sales Growth (SSSG) stood at -4.9% in Q4 FY21 compared with -34.8% in Q3 FY21 and -5.4% in Q4 FY21.

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In its outlook, the fast-food chain plans to have 320 stores by FY 2022 and 470 stores by FY 2024. SSSG is expected to remain flat in FY 2022 over FY20 and it is expected to grow about 5%-7% by FY 2023 and onwards. The gross profit is expected to be 66% by FY 2022 and 68% in FY 2024.

Burger King India set shop in India in November 2014 and has been among the fastest expanding quick service restaurant chains in the country. It is promoted by QSR Asia. The company is the national master franchisee of Burger King in India, with exclusive right and license to develop, establish, operate and franchise Burger King restaurants in India.

Shares of Burger King India dropped 4.16% to Rs 149.85 on BSE. The scrip traded in the range of Rs 145.05 to Rs 152.10 so far.

Shares of Burger King India entered the stock exchanges on 14 December 2020. The stock was listed at Rs 115.35, a premium of 92.25% to the initial public offer (IPO) price of Rs 60. The IPO of Burger King India was subscribed 156.65 times. The issue opened for subscription on 2 December 2020 and it closed on 4 December 2020. The price band for the IPO was set at Rs 59-60 per share. The net proceeds from the fresh issue are proposed to be utilised in funding roll out of new company-owned Burger King restaurants; and general corporate purposes.

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First Published: May 27 2021 | 9:29 AM IST

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