United Foodbrands (BARBEQUE) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 was ₹3,057 million (INR 306 crores), up 1.3% year-over-year, with flat sequential sales despite a seasonally weak quarter and a stable dine-in/delivery mix of 85%/15%.

• Same-store sales growth (SSSG) was -2.5%, showing month-on-month improvement and outperforming the industry trend.

• Restaurant network expanded to 222 outlets, with 8 new openings in H1 and a target of 25 new additions for FY25.

• Focus on guest experience, cost efficiencies, and menu engineering drove margin improvements.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and released following a board meeting on November 12, 2024.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was ₹3,056.95 million, with total income at ₹3,099.72 million.

• Gross margin improved by 140 basis points year-over-year to 68.1%, driven by cost efficiencies and supply chain initiatives.

• Operating EBITDA rose 2.7% year-over-year to ₹456 million, margin at 14.9%; adjusted operating EBITDA (pre IND AS 116) increased 23.1% to ₹166 million, margin at 5.4%.

• Consolidated net loss after tax for Q2 FY25 was ₹71.32 million, compared to a net loss of ₹119 million in Q2 FY24.

• Cash profit grew 16.9% year-over-year to ₹154 million, margin at 5.0%.

Outlook and guidance

• Targeting 100 new restaurants by FY27, aiming for 325 total outlets, with 25 new additions planned for FY25.

• Expansion to include 35-40 premium CDR, 15 international, and the remainder Barbeque Nation outlets.

• Capex for 100 stores estimated at INR 300 crores, to be funded through internal cash flows.

• Expecting to maintain gross margins at 68% for the year.

• Strategic focus on scaling and maintaining leadership in casual dining.