Haidilao International (6862) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB21,490.9 million, up 13.8% year-over-year, with record highs in both revenue and core operating profit (non-IFRS measure), but net profit declined 10.0% to RMB2,033.1 million due to foreign exchange losses and the end of VAT deduction benefits.

• Interim dividend of HK$0.391 (RMB0.358) per share declared for H1 2024, payable by October 2, 2024.

• Haidilao operated 1,343 restaurants as of June 30, 2024, after opening 11 and closing 43 underperforming locations, serving over 209.9 million customers.

Financial highlights

• Revenue: RMB21,490.9 million (+13.8% YoY); Haidilao restaurant operations contributed 95% of total revenue.

• Net profit: RMB2,033.1 million (-10.0% YoY); EPS: RMB0.38 (basic and diluted).

• Core operating profit (non-IFRS): RMB2,798.9 million (+13.0% YoY).

• Gross margin improved as raw materials and consumables as a percentage of revenue fell to 39.0% from 40.7%.

• Staff costs increased to RMB7,155.7 million, now 33.3% of revenue.

• Cash and cash equivalents rose to RMB8,424.9 million as of June 30, 2024.

Outlook and guidance

• Plans to accelerate restaurant expansion in H2 2024, focusing on a bottom-up approach and high-quality, profitable openings.

• Continued innovation through new business models, franchise expansion, and the “Pomegranate plan” for brand incubation.

• No specific plans for material investments or capital asset acquisitions as of June 30, 2024.