Restaurant Brands Asia (RBA) Q2 24/25 earnings summary

Executive summary

• India business delivered resilient profitability despite industry-wide negative SSSG, with continued growth in dine-in traffic and improved delivery profitability.

• Indonesia faced significant macro and geopolitical headwinds, leading to negative traffic and sales, but operational efficiencies and cost controls are being prioritized.

• Consolidated revenue for the quarter ended September 30, 2024, was ₹6,324.28 million, up from ₹6,249.04 million year-over-year, but down sequentially from ₹6,466.86 million.

• Net loss widened to ₹654.54 million for the quarter, compared to a loss of ₹506.52 million in the same quarter last year.

• Digital transformation and guest experience enhancements are progressing, with over 60% of Indian stores upgraded and a target of near 100% by year-end.

Financial highlights

• India revenue reached INR 492 crores, up 0.3% sequentially and 8.5% year-over-year.

• Gross margin in India was 67.5%, up 0.7% year-over-year and flat sequentially.

• Restaurant-level EBITDA (pre-Ind AS 116) in India was 19.8%, up 7.6% year-over-year.

• Company-level EBITDA was INR 24.4 crores, up 39.4% sequentially and 0.6% year-over-year.

• Consolidated EBITDA and segment results for India remained positive, while Indonesia continued to report segment losses.

Outlook and guidance

• India plans to open 55 new restaurants in FY25, targeting 510 total by year-end; 46 locations are already identified and under construction.

• Medium-term gross margin target is 69% by FY27, driven by pricing and supply chain initiatives.

• Indonesia aims for cash breakeven at the country level, leveraging new product launches and cost containment.

• Management continues to focus on operational improvements and resource allocation based on segment performance in India and Indonesia.