Highlights of Quarter Ended June 30, 2022
- Revenue at ₹ 5,379 million, grew by 108% YoY and 18% QoQ
- Operating EBITDA at ₹ 921 million was 18x YoY and grew 26% QoQ
- Operating EBIDTA margin at 17.1% vs 2% in Q1 FY22
- Cash PAT of ₹ 551 million
- Same Store Sales Growth stood at 97% YoY
- Three consecutive quarters of strong performance with Rs. 60+ mn of Avg. Annualized Sales Per Store and 16%+ EBITDA margin
Chennai: Westlife Development Limited (BSE: 505533) (“WDL”), owner of Hardcastle Restaurants Pvt. Ltd. (“HRPL”), the master franchisee of McDonald’s restaurants in West and South India, has announced its financial results for the quarter ended June 30, 2022.
The company witnessed a solid start to the first quarter of FY23 and recorded an all-time-high sales figure of Rs. 5,379 million, which is a strong jump of 108% Y-o-Y. Westlife witnessed strong performances for three quarters in a row with more than Rs. 60 million of Average Annualized Sales per store and over 16% EBITDA margin led by Menu innovations and Omni channel strategy. It posted a cash PAT of over Rs.551 million. The same store sales growth (SSG) saw a significant increase of 97% Y-o-Y.
The follow-through of the topline growth also gave WDL’s margins a strong boost as it recorded Restaurant Operating Margins (ROM) of 21.6% which is 4.5 times last year, a 68% jump from Q1 FY20. Operating EBITDA margins stood at 17.1% while the Cash PAT margin was 10.2%. The company grew 41% over pre-Covid base of Q1 FY20. More than 55% of the overall business growth came through digital channels. Westlife also witnessed highest quarterly sales on McDelivery App with over 18.5 million cumulative downloads.
On store expansion, 5 restaurants were added during the quarter with 12 restaurants in ground-break. Westlife plans to add 35-40 new restaurants in FY23 and over 200 new restaurants in the next 3-4 years with greater emphasis on smaller and emerging cities. The company’s growth in both dine-in and convenience channels has been continually setting a new baseline for the business. While Dine-in grew five times from the last year, the growth in Convenience remains healthy at 13% YoY.
Mr. Amit Jatia, Vice-Chairman of Westlife Development Limited, said, “Our business performance in the last three quarters is a testament to the robust strategy we have been following as well as the trust and love we have managed to build for our iconic brand. We are proud to report our strong performance which reinforces the strength and resilience of our company. We have been making meaningful progress quarter on quarter against every strategic growth pillar of our omnichannel business, menu innovations, and store expansion plans. With a redefined cost structure, increased productivity, strong average unit volumes, and healthy restaurant cash flows, we are well-positioned to deliver accelerated business results and create long-term value for shareholders”.
While Westlife’s menu innovation strategy has made the brand a leader in the snacking category in the West, with additions like the Gourmet Burger range and McSpicy Fried Chicken in its South market, the company is strengthening its Meals proposition. With the inclusion of McSpicy Fried Chicken to its menu at its restaurants in South India, the company has entered the Rs. 5,000 crore chicken market in the South and is working towards acquiring market leadership.
Westlife now has a total of 331 restaurants across 48 cities as of June 2022 with 65 Drive-Thrus, 267 McCafés and 132 Experience of the Future (EOTF) restaurants.
