Don’t miss the latest developments in business and finance.

Westlife Foodworld ends sharply higher after Q3 PAT rises 75% YoY

Image
Capital Market
Last Updated : Jan 31 2023 | 6:04 PM IST

Westlife Foodworld jumped 6.08% to Rs 732.60 after the company's net profit increased by 75% to Rs 36.35 crore in Q3 FY23 from Rs 20.82 crore in Q3 FY22.

Total Revenues rose by 28.2% YoY to Rs 611.46 crore during the quarter.

Westlife's gross margin at 66.9% improved by 52 bps YoY and 141 bps sequentially, led by pricing flow through.

Restaurant operating margin (ROM) in the third quarter was Rs 145.70 crore, up by 35.4% from Rs 107.59 crore in the same period last year.

Operating EBITDA improved by 32.2% to Rs 110.29 crore in Q3 FY23 from Rs 83.45 crore in Q3 FY22. Operating EBITDA margin was 18% in Q3 FY23 as against 17.5% in Q3 FY22.

Profit before tax in Q3 FY23 stood at Rs 48 crore, up by 72% from Rs 27.86 crore in Q3 FY22.

More From This Section

Westlife's Average Sales per Store in trailing 12 months stood at Rs 64.7 million as against Rs 47.7 million last year. The company reported 20% YoY Same Store Sales Growth (SSSG) on the back of a significant increase in dine-in guest counts.

The company saw broad-based growth across channels with menu innovations playing a key role in this growth. With the highest-ever sales in October and December, Westlife exceeded Rs 2 billion average monthly sales.

The company's off-premise business continued to clock double-digit growth while maintaining its streak of steady growth in the on-premise business. Its on-premise business witnessed 42% YoY growth and a 23% growth over pre-Covid base, while the off-premise business grew by 12% YoY and 85% over pre-Covid base.

Westlife opened six new restaurants in the third quarter of FY23. The company expects to add 35-40 new restaurants in FY23 and 580-630 new restaurants by 2027.

As of December 2022, Westlife had 341 restaurants in 52 cities, including 67 Drive-Thrus, 288 McCaf, and 205 Experience of the Future (EOTF) restaurants.

Amit Jatia, vice-chairman of Westlife Foodworld, said, We are pleased to witness yet another robust quarter on the back of significant menu innovations and superior execution.

We have stepped up our investments in modernizing our stores to EOTF formats which are more relevant for today's digital-savvy customers. Our digital channels thereby continued to show strong growth, demonstrating healthy customer adoption.

Going forward, we believe that menu innovations, omnichannel presence, and cost leadership will continue to be the key growth drivers for us as we work towards redefining the QSR industry.

Westlife Foodworld focuses on setting up and operating quick service restaurants (QSR) in India through its subsidiary Hardcastle Restaurants (HRPL). The company operates a chain of McDonald's restaurants in West and South India, having a master franchisee relationship with McDonald's Corporation USA, through the latter's Indian subsidiary. Westlife now has a total of 337 restaurants across 52 cities as of June 2022 with 68 drive-thrus, 274 McCaf, and 138 experience of the future (EOTF) restaurants.

Powered by Capital Market - Live News

Also Read

First Published: Jan 31 2023 | 4:03 PM IST

Next Story