Super Hi International Holding (9658) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached $371 million, up 14.5% year-on-year, driven by higher table turnover and network expansion.

• 14.5 million guest visits, a 17.9% increase year-on-year, with a table turnover rate of 3.8x per day, up 0.5x.

• Eight new stores opened (five in Southeast Asia, two in North America, one in East Asia); one underperforming store closed, expanding coverage to 13 countries and reaching 122 locations.

• Focus remains on guest satisfaction, operational excellence, and localization across 13 countries.

• Launched the Pomegranate Plan to incubate new brands and diversify business.

Financial highlights

• Revenue for H1 2024 was $370.9 million, up from $323.9 million in H1 2023.

• Haidilao restaurants contributed $356 million (96% of revenue); Southeast Asia led with $196 million (54.9%).

• Gross profit margin improved to 66.4%, up 0.1 percentage point year-on-year.

• Staff costs rose 8.8% to $126 million (34% of revenue) due to increased staffing and wage hikes.

• Operating profit was $21.2 million; operating profit margin 5.6%, down from 6.5% in H1 2023.

• Net profit for H1 2024 was $17.7 million, reversing a net loss of $4.6 million in H1 2023.

• Operating cash flow was $48 million, with capital expenditure at $14 million.

Outlook and guidance

• Strategy remains to become a leading global restaurant group, focusing on guest experience, network expansion, and new business incubation.

• No fixed targets for store openings; expansion is bottom-up, led by country managers.

• Continued focus on localization, product innovation, and operational efficiency.

• Table turnover rate expected to remain on a growth trajectory, though growth may narrow in Q3.

• Management emphasized sustainable growth and highlighted risks from macroeconomic and regulatory changes.