Conference Call with Westlife Foodworld Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Resturants company Westlife Foodworld announced Q1FY25 results: Sales for Q1FY25 were Rs 6.16 billion, showing a marginal 0.3% increase YoY. Same-store sales growth was (-)6.7% YoY, primarily due to subdued in-store business, while the off-premise segment showed positive same-store sales. Operating EBITDA for the quarter was Rs 800 million. Restaurant operating margins and Operating EBITDA margin decreased by 388 bps YoY and 416 bps YoY respectively, affected by operating deleverage and higher royalty costs. The company aims to achieve an 18-20% Operating EBITDA margin by December 2027. Off-premise business grew 6% YoY, contributing 42% to total sales. Digital sales grew 8% YoY, accounting for 69% of the business. Gross margins were 70.8%, improving by 62 bps sequentially and 21 bps YoY, driven by cost optimization and lower input costs, partially offset by product mix changes. System-level pricing remained stable throughout the quarter. Amit Jatia, Chairperson, Westlife Foodworld said, “While the quarter's results reflect the ongoing challenges in the operating environment, we remain focused on driving guest count and spearheading innovation to fuel our recovery. We are optimistic by the gradual improvement in the overall eatingout trend which bolsters our confidence in our ability to deliver sustained, profitable growth going forward. Our relentless focus on innovation, digital transformation, and operational excellence will be the key strategic levers as we work to deliver long-term, sustainable growth and value creation for our stakeholders.” Notably, this quarter's openings helped Westlife Foodworld reach a significant milestone, crossing 400 restaurants across West and South India. The company added 6 new locations in Q1 and is targeting 45-50 new stores in FY25, with a focus on South India, smaller towns, and drive-thru formats. As part of its Vision 2027 strategy, the company aims to grow its restaurant footprint to 580-630 locations. During the quarter, Westlife Foodworld launched a new entry-level Chicken Surprise burger and expanded its McCafé offerings by rolling out new range of cakes and bakes. The company is aiming for a 15-18% contribution of McCafé to its business by 2027. It also roped in celebrity Chef Sanjeev Kapoor for its Real Food Real Good Initiative, and embraced the anime-fandom among Gen Z with the launch of 'WcDonald's'. Result PDF
Conference Call with Westlife Foodworld Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.