Westlife Development rose 1.64% to Rs 428.70 after the company reported a consolidated net profit of Rs 2.09 crore in Q4 FY21 as against a net loss of Rs 16.66 crore in Q4 FY20.
Total revenue increased by 6.3% year-on-year (YoY) to Rs 357.59 crore during the quarter, despite regulatory headwinds, lockdowns, curfews and capacity limitations witnessed across markets. The company also reported a positive same-store sales growth (SSSG) of 10.5%.
Sales were driven by an almost complete recovery in dine-in and an impressive 142% growth across the company's convenience channels. Revenues from McDelivery and Drive Thru saw a YoY growth of 26% and 81% respectively. Even after dine in opened across the market, the company did not see a slowing down in its out of restaurant consumption. The company recorded its highest ever McDelivery Sales in March 2021 and the sales through the on-the-go channel grew over three times in the last three quarters.
This strong sales acceleration was coupled with cost leadership that aided a 91-bps growth in gross margin on a YoY basis and landed at 66.5%.
Fixed cost reduction coupled with a judicious control resulted in a significant improvement in the company's Operating EBITDA.
Operating EBITDA jumped 65.7% to Rs 32.45 crore in Q4 FY21 from Rs 19.58 crore in Q4 FY20. Restaurant operating margin touched a five year high of 16.4% during the quarter, a 527 bps growth.
Westlife Development reported a consolidated net loss of Rs 74.45 crore in the year ended 31 March 2021 as against a net profit of Rs 24.14 crore in the year ended 31 March 2020. Total revenues declined 36.3% to Rs 986.03 crore in FY21 over FY20.
The strong momentum over the last two quarters helped the company wipe away 100% losses of 1st half. The company exited the year with a positive cash flow and a strong net debt position that puts the company in strong stead to navigate uncertainties and challenges that lie ahead.
Amit Jatia, Vice-Chairman of Westlife Development, said, We are pleased to be closing FY21 on a strong note with a robust business recovery. It was a challenging but inspiring year that gave us a chance to consolidate our strengths and create new competitive advantages.
We did some exemplary work on the cost leadership front and strengthened our omni-channel strategy. We believe we are stronger than ever and have all the arms in our arsenal to confidently navigate in this volatile uncertain complex and ambiguous world.
Westlife Development focuses on setting up and operating Quick Service Restaurants (QSR) in India through its subsidiary Hardcastle Restaurants. 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.
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