Westlife Foodworld (505533) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹6,164 million (₹61,632.87 lakhs), up marginally year-over-year, with subdued in-store business and stable off-premise sales.

• Store network expanded to 403 restaurants across 66 cities, with 6 new stores added in Q1 FY25; targeting 45-50 new stores in FY25 and 580-630 by CY27.

• Digital sales accounted for 69% of total, with app downloads up 34 million life-to-date and 3 million monthly active users.

• Continued menu innovation with launches like McFiesta range, Chicken Surprise Burger, mango-flavored desserts, and expanded McCafe offerings.

• Strengthened brand through campaigns, including collaborations with Chef Sanjeev Kapoor and anime-themed marketing for Gen Z engagement.

Financial highlights

• Q1 FY25 revenue at ₹6,164 million (₹61,632.87 lakhs), up 0.3% year-over-year; total income was ₹62,144.31 lakhs.

• Same-store sales growth (SSG) at -6.7% year-over-year, with off-premise business up 6% and on-premise down 3%.

• Gross margin improved to 70.8%, up 21 bps year-over-year; restaurant operating margin at 19.1%, down from 23.0% in Q1 FY24.

• Operating EBITDA was ₹800 million (13.0% margin), down 24.1% year-over-year; cash PAT at ₹463 million (7.5% margin), down 30.9% year-over-year.

• Profit after tax for Q1 FY25 was ₹325.46 lakhs, down from ₹2,883.19 lakhs in Q1 FY24.

Outlook and guidance

• Management expects gradual improvement in business, especially in H2 FY25, with Vision 2027 targets and margin expansion as operating leverage improves.

• Guidance to add 45-50 restaurants in FY25, maintaining network expansion pace.