Restaurant Brands Asia (RBA) Q1 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in India in Q1 FY25, operating 456 restaurants in 107 cities, with a focus on value, innovation, and digital transformation.

• Consolidated revenue from operations for Q1 FY25 was ₹6,466.86 million, up from ₹5,971.44 million in the previous quarter.

• Indonesia operations faced challenges due to geopolitical headwinds, leading to store closures and negative same-store sales growth.

• Digital transformation and value-driven marketing initiatives remain key strategic priorities in both India and Indonesia.

• Consolidated net loss for the quarter was ₹521.89 million, compared to a loss of ₹920.99 million in the previous quarter.

Financial highlights

• Q1 FY25 India revenue reached INR 4,904.94 million, a 16% year-over-year increase, with SSSG of 3.1%.

• Indonesia revenue declined 17% year-over-year to INR 1,561.92 million, impacted by store rationalization.

• Gross margin in India improved by 110 basis points to 67.6% year-over-year; restaurant EBITDA rose 29% to INR 435 million.

• Consolidated EBITDA (segment results) for Q1 FY25 was ₹631.42 million, up from ₹483.05 million year-over-year.

• Company-level EBITDA in India grew 72% year-over-year to INR 175 million.

Outlook and guidance

• Targeting 510 stores in India by year-end and 700 by 2027, with a gross margin goal of 69% by 2027.

• Indonesia's immediate priority is achieving cash break-even by the end of the financial year, with restaurant EBITDA breakeven achieved.

• Management continues to focus on operational efficiency and resource allocation.