United Foodbrands (BARBEQUE) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 was ₹3,057 million (INR 306 crores), up 1.3% year-over-year, with flat sequential sales despite a seasonally weak quarter and a stable dine-in/delivery mix of 85%/15%.

• Same-store sales growth (SSSG) was -2.5%, showing month-on-month improvement and outperforming industry trends.

• Restaurant network expanded to 222 outlets, with 8 new openings in H1 and a target of 25 new restaurants for FY25 and 100 by FY27.

• Focus on guest experience, cost efficiencies, and menu engineering led to improved margins and positive same-store EBITDA growth.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and released following a board meeting on November 12, 2024.

Financial highlights

• Consolidated reported operating EBITDA increased 3% year-over-year to ₹456 million, with a margin at 14.9%.

• Pre-Ind AS operating EBITDA grew 23% year-over-year; Pre-Ind AS EBITDA margin improved by 100 bps.

• Gross margin improved to 68.1% in Q2 FY25, up from 65.9% in Q2 FY24, driven by cost efficiencies and supply chain management.

• Cash profit for the quarter was ₹154 million, up 16.9% year-over-year, with a margin of 5.0%.

• Consolidated net loss after tax for Q2 FY25 was ₹71.32 million, compared to a net loss of ₹119 million in Q2 FY24.

Outlook and guidance

• Expect continued month-on-month improvement in SSSG, with optimism for seasonally strong periods ahead.

• On track to add 25 new restaurants in FY25 and targeting 100 new restaurants by FY27, funded through internal cash flows.

• Strategic focus on scaling to 325 restaurants by FY27 and maintaining leadership in casual dining.

• Expansion of premium CDR brands (Toscano and Salt) into new metro markets, with positive guest response.