United Foodbrands (BARBEQUE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue was INR 306 crores (₹3,057 million), 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 4 new openings and 1 closure in Q2 FY25; 8 new restaurants added in H1.

• 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.

• Statutory auditors conducted a limited review and found no material misstatements in the financial statements.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was ₹3,056.95 million, with total income at ₹3,099.72 million.

• Gross margin improved to 68.1% (₹2,081 million), up 4.6% year-over-year, driven by cost efficiencies and supply chain initiatives.

• Operating EBITDA rose 2.7% year-over-year to ₹456 million, with a margin of 14.9%; adjusted Operating EBITDA (pre-IND AS 116) increased 23.1% to ₹166 million, margin at 5.4%.

• Consolidated EBITDA for the quarter was ₹498.61 million; cash profit grew 16.9% year-over-year to ₹154 million.

• Profit after tax loss narrowed to ₹71 million from ₹119 million in Q2 FY24.

Outlook and guidance

• Targeting 100 new restaurants by FY27, aiming for 325 total outlets, with 25 new additions in FY25 and 8 launched in H1.

• Expansion to include 35-40 premium CDR, 15 international, and the remainder Barbeque Nation outlets.

• Capex for 100 stores estimated at INR 300 crores, to be funded through internal cash flows.

• Expecting to maintain gross margins at 68% for the year.

• Strategic focus on maintaining leadership in casual dining and expanding guest engagement.