Super Hi International Holding (9658) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $198.6 million, up 14.6% year-over-year, with guest visits rising 4.2% to 7.4 million and table turnover rate increasing to 3.8 times/day.

• Net profit reached $38 million, a turnaround from a loss last year, aided by foreign exchange gains.

• Operational improvements focused on management efficiency, customer experience, and brand innovation, including the Pomegranate Project and new restaurant formats.

• Expansion strategies included increasing restaurant density in existing markets, exploring new markets, and planning double-digit new store openings for 2024.

• Restaurant footprint remained stable at 121 locations, with one temporary closure for rebranding.

Financial highlights

• Haidilao restaurant operations revenue grew 14.5% year-over-year to $190.9 million; delivery business rose 8.3% to $2.6 million; other income increased 21.4% to $5.1 million.

• Operating profit for Q3 was $14.9 million, with a margin improvement to 7.5% from 5.7% year-over-year.

• Net profit after tax for Q3 was $38 million, with net profit margin reaching 19.0%.

• Gross profit margin improved due to optimized raw material use and reduced rental and utility expenses, despite higher labor costs.

• Operating cash flow increased to $40.7 million from $19.9 million year-over-year.

Outlook and guidance

• Maintaining mid-single digit operating profit margin guidance for the year; Q3 margin at 7.5%.

• Store-level margin target for 2025 is 10%-15%.

• Double-digit new store openings expected for 2024, with over 10 projects already contracted.

• Focus on supply chain optimization, product innovation, digital transformation, and stable average spending per customer.