Westlife Foodworld Profit Drops 88.7% in June Quarter
Jul 25, 2024 17:57
Westlife Foodworld, operator of McDonald's in West and South India, reported an 88.72% decline in net profit for the June 2024 quarter due to subdued in-store business and higher royalty costs. Revenue remained flat, but same-store sales declined 6.7% YoY.
New Delhi, Jul 25 (PTI) Westlife Foodworld, operator of McDonald's restaurants in West and South India, on Thursday reported an 88.72 per cent decline in its consolidated net profit to Rs 3.25 crore for the June 2024 quarter on account of subdued in-store business and higher royalty costs.
The company reported a consolidated net profit of Rs 28.83 crore in the April-June quarter a year ago, according to a regulatory filing.
Its revenue from operations was flat at Rs 616.32 crore in the June quarter. This was at Rs 614.54 crore in the corresponding quarter a year ago.
Westlife Foodworld's "same-store sales growth stood at (-) 6.7 per cent YoY, impacted by subdued in-store business, though the off-premise segment saw positive same-store sales," said an earning statement by the company.
Moreover, "restaurant operating margins and Operating EBITDA margin were lower by 388 bps YoY (Year-on-Year) and 416 bps YoY, respectively, owing to operating deleverage and higher royalty costs".
Total expenses of Westlife Foodworld in the June quarter were up 6.5 per cent to Rs 616.92 crore.
Westlife Foodworld's total income, which includes other incomes, was flat at Rs 621.44 crore in the June quarter.
During the quarter, Westlife Foodworld crossed a significant milestone of 400 McDonald's 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," it said.
Westlife Foodworld, formerly known as Westlife Development, operates Quick Service Restaurants (QSR) in India through its subsidiary Hardcastle Restaurants Pvt Ltd. It has a master franchisee relationship with McDonald's Corporation USA to operate a chain of McDonald's restaurants in West and South India.
Shares of Westlife Foodworld Ltd settled 2.47 per cent lower at Rs 834.70 apiece on the BSE.
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