Westlife Foodworld (505533) Q4 11/12 earnings summary

Executive summary

• HRPL grew FY2011-12 restaurant sales 43.38% and PAT 126.36%, driven by same-store growth and 24 new outlets.

• Consolidated profit after minority interest was ₹313.95 million, versus a ₹14.31 million loss in FY2010-11; comparison reflects a different consolidation scope.

• WDL standalone reported a ₹9.94 million net loss after a ₹12.74 million project-expenditure write-off.

Financial highlights

• HRPL sales from company-owned restaurants rose 43.38% to ₹5,397.83 million; total revenue was ₹5,444.60 million.

• HRPL EBITDA increased 69.08% to ₹672.38 million and PAT rose 126.36% to ₹425.08 million.

• Consolidated revenue from operations was ₹5,474.12 million and profit after minority interest was ₹313.95 million; prior-year figures were ₹19.26 million and a ₹14.31 million loss.

• WDL standalone profit before exceptional items and tax was ₹4.35 million, versus ₹0.28 million in FY2010-11; project expenditure write-off drove the ₹9.94 million after-tax loss.

Outlook and guidance

• HRPL planned continued restaurant openings and reimaging in FY2012-13, with focus on convenience, menu optimisation, accessibility, value and employee engagement.

• Expansion plans included McDelivery, drive-thrus, kiosks and 24x7 operations, alongside breakfast and value-menu growth.

• Investment decisions were to prioritise customer experience, sustainable sales and market-share growth, and strong returns while maintaining financial discipline.