Super Hi International Holding (9658) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.5% year-over-year to $199 million in Q2 2025, driven by network expansion, higher guest visits, and strong growth in both restaurant operations and delivery business.

• Net profit after tax reached $16.4 million, reversing a small loss last year, mainly due to foreign exchange gains and reduced FX losses.

• Operating profit declined 56.5% year-over-year to $3.65 million, with a margin of 1.9%, reflecting increased staff and benefit costs.

• Continued expansion with 4 new restaurants opened in Malaysia, Indonesia, South Korea, and U.A.E., and the first overseas barbecue restaurant launched in Malaysia; total locations reached 222 as of June 30, 2025.

• Enhanced operational efficiency through management decentralization, talent development, and new performance evaluation systems.

Financial highlights

• Haidilao restaurant revenue was $189.1 million, up 7.3% year-over-year, driven by expansion and higher customer traffic.

• Takeout/delivery revenue surged 61% to $3.7 million; other business segments grew 27.1% to $6.1 million.

• Gross profit margin was 66%, down 0.3 percentage points year-over-year; employee costs rose to 35.3% of revenue.

• Operating expenses increased to 11.7% of revenue, mainly due to higher outsourcing, consulting, and marketing costs.

• Net operating cash inflow was $26.6 million, up year-over-year.

Outlook and guidance

• Expect to open over 10 new stores in 2025, with more planned for 2026, increasing density in existing markets and entering new regions.

• Focus on expanding service scenarios, such as late-night dining and family-friendly environments, and continued innovation and operational efficiency.

• Table turnover rates and gross profit margin are expected to improve in the second half, with Q3 and Q4 being peak seasons.

• Gross profit margin is projected to remain stable or slightly increase, supported by stable procurement costs and optimized price concessions.

• Continued emphasis on benefit-sharing with customers and employees, and ongoing operational optimization.