Westlife Development records net profit of Rs 20.82 crore in Dec quarter

Westlife Development Limited owner of Hardcastle Restaurants Pvt. Ltd. ("HRPL"), the master franchisee of McDonald's restaurants in West and South India announced its financial results for the quarter ended December 31, 2021.

The results were taken on record by the Board of Directors at a meeting held today.

The Company recorded a strong quarter with robust performance across all operating metrics, setting new benchmarks for the business.

It also clocked an all-time high revenue of ₹4768.3 million, a significant 46.7% jump YoY. This was driven by growth across both dine-in and convenience channels that grew by a solid 39% and 55% respectively. The Company’s Same Store Sales Growth for the quarter stood at 44% YoY.

The Company continued to execute its cost rationalization strategies. Despite all inflationary pressures, it clocked a robust gross margin of 66.4% - an improvement of 48.2% YoY. The strong topline ensured a robust 60.3% YoY jump in the Restaurant Operating Margins that stood at 22.6%.

It also reported a high EBITDA of INR 836.2 million, a 61.0% increment YoY, taking the EBITDA margin to a new high. As a result, the Company clocked an all-time high PAT of INR 208.2 million.

McDonald’s also added 8 new stores taking the total store count to 316 restaurants across 44 cities. Close to 80% of its restaurants have McCafé now while over 100 of them are ‘Experience of The Future’ (EOTF) restaurants.

In October 2021, the Company announced that it will invest INR 800-1000 crores over the next 3-5 years to take its restaurant count to over 500, convert all its restaurants to EOTF, improve its digital prowess, and develop cutting-edge menus.

“We are quite pleased with our performance in the quarter. What is especially noteworthy is that this has come in a quarter that continued to see certain COVID-led restrictions,” shared Amit Jatia, Vice-Chairman of Westlife Development Limited by adding that this is a testimony to their robust strategy that is going to hold them in strong stead through the volatilities of the future.

This quarter also marked 25 years of McDonald’s operations in India. Westlife Development celebrated this milestone with the launch of 25 Acts of Happy campaign - 25 big and small initiatives to bring a smile to the faces of its customers and employees.