WESTLIFE DEVELOPMENT DELIVERSA STRONG QUARTER ASREVENUE, EBIDTA AND PATSOAR TO AN ALL-TIME HIGH- LAYS THE ROADMAP FOR ACCELERATED GROWTH

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Westlife Development Limited (BSE: 505533) (“WDL”), owner of Hardcastle Restaurants Pvt. Ltd. (“HRPL”), the master franchisee of McDonald’s restaurants in West and South India announced its financial results for the quarter ended December 31, 2021. The results were taken on record by the Board of Directors at a meeting held today. The Company recorded a strong quarter with robust performance across all operating metrics, setting new benchmarks for the business. The Company clocked an all-time high revenueof ₹4768.3 million, a significant 46.7% jump YoY. This was driven by growth across both dine-in and convenience channels that grew by a solid 39% and 55% respectively. The Company’s Same Store Sales Growth for the quarter stood at 44% YoY.

The Company continued to execute its cost rationalization strategies. Despite all inflationary pressures, the Company clocked a robust gross margin of 66.4% – an improvement of 48.2% YoY. The strong topline ensured a robust 60.3% YoY jump in the Restaurant Operating Margins that stood at 22.6%. It also reported a high EBITDA of INR 836.2 million, a 61.0% increment YoY, taking the EBITDA margin to a new high. As a result, the Company clocked an all-time high PAT of INR 208.2 million.

The Companyhas now embarked on an aggressive expansion plan. This quarter, it added 8 new stores taking the total store count to 316 restaurants across 44 cities. Close to 80% of its restaurants have McCafé now while over 100 of them are ‘Experience of The Future’ (EOTF)restaurants. In October 2021, the Company announced that it will invest INR 800-1000 croresover the next 3-5 years to take its restaurant count to over 500, convert all its restaurants to EOTF, improve its digital prowess, and develop cutting-edge menus.

Menu innovation, omni-channel presence and network expansion continued to be the key levers of strategy for Westlife.
This quarter the Company added the new Gourmet Burger Collection to its menu. These new range of burgers, along with the Fried Chicken platform and McCafé helpedaccelerate the company’saverage unit volume (AUV)growth by30% without any significant capex investment.
The Company’s omni-channel strategy helped it complement its strong menu relevance by making the brand ubiquitous – accessible however, whenever and wherever they like.The Company saw a strong growth in dine-in without any cannibalization from the convenience-led revenue. Even in this quarter, where most dine-in restrictions were eased, revenue from convenience channels saw a 55% jump YoY with McDelivery reporting its highest ever revenue so far.


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