Westlife Foodworld delivers a record FY 23; reports highest ever Q4 sales, with 14% same store sales growth
Highlights for the Financial Year 2023
- Highest ever sales at Rs. 22.7 bn, grew by 44% YoY; Strong double-digit Same Store Sales Growth (SSSG) at 36% YoY
- Op. EBITDA at Rs. 3.9 bn, grew by 90% YoY; Op. EBITDA margin was 17.3% (vs 13.1% in FY22)
- Cash PAT at Rs. 2.5 bn, grew 97% YoY; Cash PAT margin was 11.2% (vs 8.2% in FY22)
Highlights of Quarter ended March 31, 2023
- Highest ever Q4 sales at Rs. 5.56 bn grew by 22% YoY, strong double-digit SSSG of 14% YoY
- Digital sales improved to ~62% led by Self Operating Kiosks (SOK); launched the new McDelivery App
- Op. EBITDA at Rs. 919 mn grew 26% YoY; Op. EBITDA margin was 16.5% (vs 16.0% in Q4 FY22)
Westlife Foodworld Limited (“WFL”), formerly known as Westlife Development (BSE: 505533) (“WDL”), owner and operator of McDonald’s restaurants in West and South India, has announced a record full-year performance 2023 with highest ever sales of Rs. 22.7 bn up by 44% YoY, driven by industry-leading Same Store Sales Growth (SSSG) at 36% YoY. The company recorded a Cash PAT of Rs. 2.5 billion up by 97% YoY.
In the quarter under review, the company reported an all-time high Q4 sales of Rs. 5.56 bn, up 22% YoY with a strong double-digit SSSG (same-store sales growth) of 14% YoY. This was driven by a double-digit growth in dine-in customers, enabling the on-premise business to grow by 38% YoY. The company’s own delivery channel, the McDelivery platform, saw a robust rise in user base, as digital sales improved to ~62%, led by SOKs (Self-Ordering Kiosks).
This strong topline resulted in a 34% YoY increase in the company’s Restaurant Operating Margin, which now stands at ₹1,364 million. Withstanding the challenges of inflationary pressures and macroeconomic headwinds, the company’s Operating EBIDTA jumped to Rs 919 mn, growing by 26% YoY. The company recorded a Cash PAT of Rs. 567 million in the quarter. Westlife’s average sales per store (TTM) stood at Rs. 66.2 mn, up from Rs. 49.8 mn in FY 22.
Commenting on the results for FY 23, Mr. Amit Jatia, Vice-Chairman, Westlife Foodworld Limited, said, “FY 23 was a landmark year for Westlife Foodworld. Our strong performance, delivered by our omnichannel strategy, menu innovations, store modernization, and cost optimization strategies, is a testament to our scale and agility. We were not only able to strengthen our value proposition but were also able to capitalize on our momentum to promote long-term sustainable growth for all our stakeholders. I believe we are on a strong growth trajectory and will continue to build on our competitive strengths and further our business advantage”.
Westlife opened 18 new restaurants in the fourth quarter of FY23. The company is on a fast track to add 40-45 new restaurants in FY24 and 580-630 new restaurants by 2027.
Strengthening its Big Burger-led menu innovations, the brand launched the iconic Chicken Big Mac and Cheesy Nuggets. To promote the Chicken Big Mac, Virendra Sehwag was roped in as the face of the brand campaign. To further reinforce its commitment towards fostering a culture of gender equality and diversity, this International Women’s Day, the company launched a distinctive multi-nation campaign recognizing the significant contribution that women have made to its workforce.
As of March 2023, Westlife had 357 restaurants in 56 cities, including 68 Drive-Thrus, 311 McCafés, and 220 Experience of the Future (EOTF) restaurants.
| Particulars (INR Mn, Post INDAS 116) | Q4FY23 | % | Q4FY22 | % | Q3FY23 | % |
| Sales | 5,563.7 | 100.0% | 4,550.8 | 100.0% | 6,114.6 | 100.0% |
| YoY Sales Growth % | 22.3% | 27.3% | 28.2% | |||
| Food & paper | 1,561.9 | 28.1% | 1,446.6 | 31.8% | 1,824.2 | 29.8% |
| Gross Profit | 4,001.8 | 71.9% | 3,104.2 | 68.2% | 4,290.3 | 70.2% |
| Payroll & Benefits | 554.0 | 10.0% | 413.9 | 9.1% | 546.7 | 8.9% |
| Royalty | 250.3 | 4.5% | 202.6 | 4.5% | 280.4 | 4.6% |
| Other Operating Expenses | 1,833.0 | 32.9% | 1,471.7 | 32.3% | 2,006.2 | 32.8% |
| Restaurant Operating Margin (ROM) | 1,364.5 | 24.5% | 1,016.0 | 22.3% | 1,457.0 | 23.8% |
| General & Admin Expense | 445.5 | 8.0% | 287.5 | 6.3% | 354.1 | 5.8% |
| Op. EBITDA | 919.1 | 16.5% | 728.5 | 16.0% | 1,102.9 | 18.0% |
| YoY EBITDA Growth % | 26.2% | 46.0% | 32.2% | |||
| Depreciation | 411.2 | 7.4% | 346.3 | 7.6% | 385.6 | 6.3% |
| Other (Income) / Expense, net | (49.2) | -0.9% | (39.8) | -0.9% | (36.4) | -0.6% |
| Financial Expense (Net) | 253.3 | 4.6% | 208.6 | 4.6% | 233.7 | 3.8% |
| Extraordinary Expenses* | 26.5 | 0.5% | 8.0 | 0.2% | 40.0 | 0.7% |
| PBT | 277.3 | 5.0% | 205.4 | 4.5% | 480.0 | 7.8% |
| Tax | 76.3 | 1.4% | 52.2 | 1.1% | 116.4 | 1.9% |
| PAT | 201.0 | 3.6% | 153.2 | 3.4% | 363.5 | 5.9% |
| PAT (pre-IND AS 116) | 250.9 | 4.5% | 250.5 | 5.5% | 423.4 | 6.9% |
| Cash Profit After Tax | 567.4 | 10.2% | 528.8 | 11.6% | 753.1 | 12.3% |
| SSSG (%) | 14% | 23% | 20% | |||
| New stores opening | 18 | 12 | 6 |