Westlife Foodworld (505533) Q4 18/19 earnings summary

Executive summary

• FY2018-19 revenue from operations rose 23.5% to ₹14,016.06 mn; profit after tax increased 213.46% to ₹403.02 mn.

• Growth reflected 17% same-store sales growth, 25 new restaurants, menu and brand extensions, and cost and supply-chain efficiencies.

Financial highlights

• Revenue from operations was ₹14,016.06 mn versus ₹11,348.74 mn in FY2017-18; sales were ₹13,887.03 mn versus ₹11,255.31 mn.

• EBITDA was ₹1,367.09 mn versus ₹951.30 mn; operating EBITDA was ₹1,273.9 mn versus ₹846.8 mn.

• Profit before tax was ₹392.62 mn versus ₹128.57 mn; profit after tax was ₹403.02 mn versus ₹128.57 mn, aided by a net tax credit of ₹10.40 mn.

• Operating cash flow was ₹1,148.17 mn; cash profit was ₹1,258.1 mn versus ₹889 mn in FY2017-18.

Outlook and guidance

• FY2019-20 same-store revenue growth targeted at mid- to high-single digits; plans called for 25–30 new restaurants annually.

• EOTF restaurants targeted to rise from 25 at FY2018-19 close to ~60 by FY2019-20 close; McCafe outlets targeted to exceed 200 from 190.

• By 2022, projections called for 450–500 restaurants, 300–350 McCafe outlets, 300–325 McDelivery-enabled outlets, and low- to mid-teens EBITDA.