Westlife Foodworld posts record sales of Rs. 6.1 bn in Q3 FY23, backed by strong 20% Same Store Sales growth

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In the quarter under review, the company recorded an all-time high sales of Rs. 6.1bn, an increase of 28% Y-o-Y. Westlife’s Average Sales per Store in trailing 12 months stood at Rs. 64.7 mn vs Rs. 47.7 mn last year. The company reported 20% YoY Same Store Sales Growth (SSSG) on the back of a significant increase in dine-in guest counts.

The company saw broad-based growth across channels with menu innovations playing a key role in this growth. With the highest-ever sales in October and December, Westlife exceeded Rs. 2bn average monthly sales. The company’s off-premise business continued to clock double-digit growth while maintaining its streak of steady growth in the on-premise business. Its on-premise business witnessed 42% YoY growth and a 23% growth over pre-Covid base, while the off-premise business grew by 12% YoY and 85% over pre-Covid base. On the back of various initiatives and operational improvements, the company’s own delivery channel, the McDelivery platform, continued to outperform with a rising user base.

The Restaurant Operating Margin stood at Rs. 1,457 mn, showing a healthy growth of 35% YoY. The company’s Operating EBITDA jumped 32% YoY to clock Rs. 1,103 mn. Cash Profit After Tax for the quarter stood at Rs. 753 mn, which is 21% higher than last year. Westlife’s gross margin at 66.9% improved by 52 bps YoY and 141 bps sequentially, led by pricing flow through.

Mr. Amit Jatia, Vice-Chairman of Westlife Foodworld Limited, said, “We are pleased to witness yet another robust quarter on the back of significant menu innovations and superior execution. We have stepped up our investments in modernizing our stores to EOTF formats which are more relevant for today’s digital-savvy customers. Our digital channels thereby continued to show strong growth, demonstrating healthy customer adoption. Going forward, we believe that menu innovations, omnichannel presence, and cost leadership will continue to be the key growth drivers for us as we work towards redefining the QSR industry.”

Westlife opened six new restaurants in the third quarter of FY23. The company is on a fast track to add 35-40 new restaurants in FY23 and 580-630 new restaurants by 2027.

The company launched several new brand campaigns over the last quarter, including the “Festivals Make Families” brand affinity campaign and the McCheese menu. It also launched the new KITKAT product range in collaboration with Nestle to bring festive cheer to all its customers. Reinforcing its commitment to fostering inclusion, the company unveiled a new brand film for its EatQual initiative and redoubled its efforts in this area.

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