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

Executive summary

• Celebrated 10 years in India, expanding to 456 restaurants in 107 cities and 352 cafes, with a strong focus on value, innovation, and digital transformation.

• Achieved highest-ever quarterly revenue in India in Q1 FY25, with strong traffic growth and continued network expansion.

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

Financial highlights

• India revenue reached ₹4,904.94 million in Q1 FY25, up 16% year-over-year, marking the highest quarterly revenue to date.

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

• Consolidated Q1 FY25 revenue from operations grew 6% year-over-year to ₹6,467 million.

• Indonesia revenue was ₹1,561.92 million in Q1 FY25, down 17% year-over-year due to store closures.

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

Outlook and guidance

• Targeting 510 stores in India by year-end and 700 by FY27; 19 stores under construction.

• Aims to achieve 69% gross margin in India by FY27; expects stronger performance in the second half of the year.

• Indonesia's immediate priority is to reach cash break-even at the country level as geopolitical headwinds subside.

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