Q1 2025 Westlife Foodworld Ltd Earnings Call Transcript
Key Points
- Westlife Foodworld Ltd (BOM:505533) opened six new restaurants this quarter, reaching a milestone of 400 McDonald's restaurants across 66 cities.
- The company aims to open 45 to 50 new stores in FY25, focusing on South India, smaller towns, and drive-thrus.
- McCafé food items like cookies and brownies are being extended across the entire network, aiming for a 15% to 18% contribution to store AUV by 2027.
- Digital sales stood at 69% with over 3 million monthly active users on the mobile app, indicating strong digital engagement.
- Gross margin in Q1 was 70.8%, showing an upward trajectory despite the value platform play, underscoring the robustness of the business model.
- Same-store sales growth (SSG) was negative at -6.7% on a base of +7.4% from the previous year, indicating a decline in on-premises business.
- Profitability was subdued due to unfavorable operating leverage and higher royalty costs, with restaurant operating margins and operating EBITDA lowered by around 400 bps YoY.
- Other operating expenses were higher due to elevated marketing spend, which is expected to continue for the next one or two quarters.
- The cohort of stores impacted by external community-related issues continues to drag overall momentum, with these issues being more prolonged than initially expected.
- On-premises business declined by 3%, and the average sales per store on a trailing 12-month basis was INR61.3 million, indicating pressure on in-store sales.
Ladies and gentlemen, good day, and welcome to the Westlife Development Limited Q1 FY25 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Chintan Jajal. Thank you, and over to you, sir.
Thanks, [Idal]. Welcome, everyone, and thank you for joining us on Westlife Foodworld earnings conference call for the first quarter ended June 30, 2024. I am Chintan Jajal, Lead IR at Westlife. From the management team, I have with you Mr. Amit Jatia, Chairperson; Ms. Smita Jatia, Vice Chairperson; Mr. Saurabh Kalra, Managing Director; Mr. Akshay Jatia, Executive Director; and Mr. Hrushit Shah, Chief Financial Officer.
We will kick off today's conversation with Akshay sharing his thoughts on overall business progress and outlook. This will be followed by Saurabh taking us through operational, financial and strategic highlights. Post that, we can open the forum for question and answer. We will be referring to earnings presentation and financial releases
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
