Restaurant Brands Asia (RBA) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue in India in Q1 FY25, expanding to 456 restaurants in 107 cities and 352 cafes, with a focus on value, innovation, and digital transformation.

• Indonesia operations faced challenges from geopolitical headwinds, leading to store closures, negative same-store sales growth, and rationalization to 149 stores.

• Digital transformation and value-driven marketing initiatives remain key priorities in both India and Indonesia.

• Consolidated revenue from operations for Q1 FY25 was ₹6,466.86 million, up from ₹5,971.44 million in the previous quarter.

• Consolidated net loss for the quarter was ₹521.89 million, compared to a loss of ₹920.99 million in the previous quarter.

Financial highlights

• Q1 FY25 India revenue reached INR 4,905 million, a 16% year-over-year increase, with SSSG of 3.1% and average daily sales of INR 119,000.

• Indonesia revenue for Q1 FY25 was INR 1,562 million, down 17% year-over-year due to store closures.

• Consolidated EBITDA (segment results) for Q1 FY25 was ₹631.42 million, up from ₹483.05 million year-over-year.

• India company-level EBITDA (pre-Ind AS 116) increased 72% year-over-year to INR 175 million.

• Consolidated EPS for the quarter was ₹(0.99), compared to ₹(1.02) year-over-year.

Outlook and guidance

• Targeting 510 stores in India by year-end and 700 by 2027, with 19 stores under construction.

• India gross margin target of 69% by 2027 remains on track.

• Indonesia aims for country-level cash breakeven by year-end, with restaurant EBITDA breakeven achieved.

• Management continues to focus on operational efficiency and resource allocation.