Westlife Foodworld (505533) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated sales grew 7.3% year-over-year to INR 6,032 million, with adjusted same-store sales growth (SSSG) of 1.7% excluding leap year impact.

• The store network expanded to 438 restaurants across 69 cities, with 47 new stores opened in FY25 and 18 in Q4, reaching 100 drive-thru locations.

• Digital sales contributed 75% of Q4 sales, supported by 41 million app downloads and 3 million monthly active users, with off-premise sales at 43%.

• Strategic focus remained on value proposition, product innovation, and digital engagement, with new menu launches such as the Korean and Mango Burst ranges.

• Despite sector-wide demand softness, the business maintained positive comparable sales and is confident in sustaining momentum.

Financial highlights

• Q4 FY25 revenue from operations was INR 6,032 million, up from INR 5,622.8 million in Q4 FY24, with gross margin stable at 70%.

• FY25 sales, EBITDA, and cash PAT were INR 24,911.92 million, INR 3,300 million, and INR 1,900 million, respectively, with three-year CAGR of 16%, 17%, and 14%.

• Q4 FY25 operating EBITDA was INR 795 million (13.2% margin), and cash profit after tax was INR 469 million (7.8% of sales).

• Restaurant operating margin declined by 30 bps YoY to 19.1% due to operating deleverage.

• Profit after tax for FY25 declined to INR 115.5 million from INR 684.9 million in FY24, reflecting margin pressures and higher expenses.

Outlook and guidance

• Management remains committed to Vision 2027, targeting 580-630 restaurants, with expansion focused on South India and emerging infrastructure corridors.

• Confident in achieving mid to high single-digit SSSG over the next couple of years, with gradual demand improvement expected.

• Profitability expected to improve with higher volumes, targeting 18-20% operating EBITDA margin by 2027.

• Expansion to be funded primarily through internal accruals, maintaining a stable net debt position.

• The Board and auditors confirmed the company as a going concern, with no material uncertainties disclosed.