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West Life’s enormous growth

WESTLIFE DEVELOPMENT LTD REPORTS STRONG REVENUE GROWTH FOR THE FISCAL ENDED 2017

Records double digit revenue growth of 11.7 percent in fiscal year 2017

System-wide comparable sales (SSSG) up 4.0 per cent

Cash profits rise 27.9 per cent*

 

  Westlife Development Limited (BSE: 505533) owner of the Master Franchisee of McDonald’s restaurants in west and south India, today announced audited financial and operating results for the quarter and fiscal ended March 31, 2017. The results were taken on record by the Board of Directors at a meeting held in Mumbai.

WDL reported a 11.7% increase in total revenues to ₹9,307.9 million from ₹8,334.3 million Y-o-Y (year-on-year) riding on the operations of its subsidiary, Hardcastle Restaurants Pvt. Ltd, (HRPL), a master franchisee for the west and south India operations of McDonald’s Restaurants.

 

Commenting on the financial results for the fourth quarter and fiscal ended March 31, 2017, Mr. Amit Jatia, Vice-Chairman of Westlife Development Limited said, “FY17 has been a significant step forward for brand

Mc Donald’s in India. The company has delivered a robust performance, recording a year-on-year sales growth of 11.7 per cent on the back of aggressive menu innovations, brand extensions and migrating to a more efficient restaurant operating system.

We ramped up our menu with the introduction of new dishes like masala scrambled eggs and dosa masala brioche in McBreakfast as well as new daytime offerings like soups, salad and wraps, providing our customers wholesome and healthier meal options.

 

On the operating front, new stores have performed remarkably well under the Restaurant Operating Platform (ROP) 2.0 that was launched in the last quarter of FY16. New stores that were opened under ROP 2.0 yielded substantial cost efficiencies, leading to a significantly shorter break even time.

Despite challenges in the external market environment, we remain confident of our ability in being able to deliver value to our consumers and shareholders.”

 

During the year under review, HRPL took a quantum leap and delighted its customers with its EOTF or “Experience of the Future” stores. These stores enhance convenience by offering customers the choice of self-ordering kiosks, air chargers, table service and other facilities with a view to provide our patrons a modern dining space. This contemporary McDonald’s experience will be a key differentiator for the brand and will be a cornerstone of growth for HRPL over the next few years.

 

The company substantially increased its McCafé footprint, adding 36 McCafé’s in FY17 with 7 McCafé being added in the last quarter, taking the total count to 111. McCafé has enabled the company to broaden its addressable market and grow baseline sales.

 

WDL added 25 new restaurants in FY17, taking the total count to 258 in west and south India. In this quarter, the company added 9 restaurants (4 in Maharashtra, 1 each in Chhattisgarh, Goa, Gujarat, Karnataka and Tamil Nadu) and aims to have 450-500 restaurants by 2022.

 

FINANCIAL HIGHLIGHTS FOR FISCAL ENDED MARCH 31, 2017:

  • Revenue growth of 11.7 per cent year-over-year to ₹9,307.9 million in FY17 as compared to ₹8,334.3 million in FY16, riding on the strong performance of its subsidiary, Hardcastle Restaurants Pvt. Ltd. (HRPL)
  • Operating EBIDTA stood at ₹495.0 million as against ₹487.7 million in the previous financial year
  • Profit/ (Loss) After Tax stood at ₹(121.2) million as against ₹(205.7) million in the previous financial year
  • Cash Profit increased 27.9 per cent to ₹559.9 million from ₹437.8 million in the previous financial year
  • Total Restaurant network at 258, Y-o-Y gross additions at 25; Total McCafé count ramped up to 111 as against 75 at the end of previous fiscal.

 

FINANCIAL HIGHLIGHTS FOR QUARTER ENDED MARCH 31, 2017:

  • Revenue growth of 5.8 per cent year-over-year to ₹2,248.9 million riding on the strong performance of its subsidiary, Hardcastle Restaurants Pvt. Ltd. (HRPL)
  • Operating EBIDTA stood at ₹113.5 million as against ₹118.6 million in the same quarter of the previous year
  • Profit / (Loss) After Tax stood at ₹(41.5) million as against ₹(65.3) million in the same quarter of the previous year
  • 9 new restaurants and 7 McCafé opened in Q4FY17
  • Same store sales grew 1.0% vs 8.4% in the same quarter last year. This is despite losing a trading day this year, since last year was a leap year
  • Cash Profit stood at ₹139.8 million as against ₹89.9 million in the same quarter of the previous year

 

NOTE TO THE EDITORS: Westlife Development Limited and Hardcastle Restaurants follow an April-March fiscal year. The results reported are for the

fourth quarter and fiscal ended March 31, 2017.

 

 

May 16, 2017
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