Mumbai, June 12, 2020: Westlife Development Limited (BSE: 505533) (“WDL”), owner of Hardcastle Restaurants Pvt Ltd (“HRPL”), the Master Franchisee of McDonald’s restaurants in West and South India, announced audited financial results for the year ended March 31, 2020. The results were taken on record by the Board of Directors at a meeting held today.
Through the year, Westlife Development continued executing its long-term strategy grounded in consumer insights that enabled the company to remain relevant to the fast-evolving customer. As a result, despite the challenging economic environment and COVID-19 led business disruptions, the company reported a robust annual revenue growth of 10.4% with its PAT surging by 71.9%. The company’s annual revenue increased to ₹ 15,477.6 million with an annual SSSG of 4.0%. The reported cash profit for the year stood at ₹ 1,340.6 million, up by 23.6%. Driven by enhanced operating and supply chain efficiencies, the company’s Restaurant Operating Margins grew by 11.9% YoY, while the annual operating EBITDA clocked a growth of 15.8% to ₹1,439.3 million.
During the year under review, WDL focused on delivering unparalleled value and customer experience. The company re-energized its value platform – McSaver and continued the aggressive rollout of its Experience of The Future (EOTF) restaurants. With compelling offerings across all day-parts and occasions including snacks, coffee, meals, breakfast, desserts and delivery, the company consolidated its position as a ‘One for All and All for One’ destination.
The onset of the COVID-19 pandemic brought forth the agility and customer forward strategies of Westlife Development. The company anticipated consumers’ need for assurance and convenience and was among the first companies to launch ‘Contactless Delivery’. It stepped up its already stringent hygiene and safety practices across its operations and ensured that similar processes were also being followed by the suppliers at their end. At the same time, the company took all possible measures to bring down fixed costs, further enhance operational efficiencies and conserve cash.
Commenting on the financial results for the year ended March 31, 2020, Mr Amit Jatia, Vice-Chairman of Westlife Development Limited said, “Our strategic focus on value, customer experience and strong fiscal discipline resulted in solid annual growth. Despite the macro-economic challenges, we were able to build momentum across all performance parameters in FY20. Through the year, we saw our revenues, profits and margins grow. We marked the 18th consecutive quarter of Same Store Sales Growth followed by January and February registering a high SSSG of 12.3%, before COVID-19 hit us in March 2020.”
Speaking on company’s response to COVID-19 led challenges and the consequent lockdown, he added, “The lockdown has in a sense tested the agility, resilience and versatility of our business model. We entered this crisis with a strong balance sheet and a solid business foundation. But the situation gave us yet another opportunity to revisit our cost structures across the board, and sharpen our focus on our operations – something that will give us added firepower to navigate this challenge and emerge stronger.”
As the states get ready to ease the lockdown, Westlife Development has launched ‘Contactless Take out’ and implemented a 42-point checklist across its dine-in, delivery and take-out to ensure highest standards of food safety and hygiene across all channels. It has also activated other convenience channels such as drive-thru and on-the-go pick up.
In FY20, WDL expanded its footprint and opened 24 new restaurants, taking the total restaurant count to 319. The company added 33 new McCafés taking the total number to 223. The in-house coffee chain grew to become the second-largest coffee chain by units in the region. It also achieved the milestone of serving more than 10 million cups of coffee.
McDelivery charted a phenomenal trajectory and emerged as one of the most critical growth drivers for the company. With 264 McDelivery hubs and strong relationships with food delivery aggregators, the company is well positioned to capture delivery market that’s poised to explode in the post-COVID new normal.
Through FY20, WDL continued to leverage technology to enhance customer experience as well as to maximize operational efficiencies. The company has been weaving technology across its operations with an aim to become a food-tech company. The company also leveraged technology enable contactless takeout and deliver added convenience and assurance to its customers.
As the Government announced the nation-wide lockdown, WDL enabled ‘Work From Home’ for the entire organization, including the frontline restaurant staff. This ensured that close to 10,000 young people of the country remained gainfully engaged through the lockdown while getting an opportunity to upgrade and upskill. The company also partnered with several NGOs to deliver safe and hygienic food to frontline warriors and communities most affected by the lockdown under its ‘Meals for Good’ program. It reached out to over 56,000 people across 6 cities.
|WESTLIFE DEVELOPMENT LIMITED|
|Comparable Operating Performance (Consolidated)|
|Excludes impact of IND AS 116 (₹ in millions)|
|Particulars||Current year (Adjusted)||Previous year (Adjusted)||Growth YoY||Current Year (Adjusted)||Previous Year (Adjusted)||Growth YoY|
|For the Quarter ended March 31, 2020||For the Quarter ended March 31, 2019||For the year ended March 31, 2020||For the year ended March 31, 2019|
|Sales by company owned restaurants||3,327.7||3,336.4||(0.3)%||15,383.4||13,887.0||10.8%|
|Other Operating Income – Restaurants||34.7||55.3||(37.2%)||89.5||129.0||(30.7%)|
|Restaurants operating Revenues (A)||3,362.4||3,391.7||(0.9%)||15,472.9||14,016.0||10.4%|
|Net Gain on fair value changes in value of Investments (B)||1.1||1.1||0.0%||5.0||4.4|
|Total Revenues (A) + (B)||3,363.5||3,392.8||(0.9%)||15,477.9||14,020.4||10.4%|
|Operating Costs and Expenses|
|Restaurant Operating Cost and Expenses|
|Food & Paper||1,158.0||34.4%||1,238.5||36.5%||(6.5%)||5,382.4||34.8%||5,115.9||36.5%||5.2%|
|Payroll and Employee benefits||437.1||13.0%||377.6||11.1%||15.7%||1,690.0||10.9%||1,453.4||10.4%||16.3%|
|Occupancy and other operating expenses||1,253.6||37.3%||1,159.9||34.2%||8.1%||5,436.8||35.1%||4,788.0||34.2%||13.6%|
|Total Restaurant Operating Cost and Expenses||3,001.6||89.2%||2,929.8||86.4%||2.5%||13,215.2||85.4%||11,998.7||85.6%||10.1%|
|Restaurant Operating Margin||361.9||10.8%||463.0||13.6%||(21.8%)||2,262.7||14.6%||2,021.7||14.4%||11.9%|
|Other trading operating cost and Expenses||–||0.00%||–||0.00%||–||0.00%||–||0.00%|
|General & Administrative expenses||177.3||5.3%||197.6||5.8%||(10.3%)||823.4||5.3%||779.1||5.6%||5.7%|
|Total Operating costs and expenses||3,179.0||94.5%||3,127.5||92.2%||1.7%||14,038.6||90.7%||12,777.8||91.1%||9.9%|
|Operating EBIDTA||184.6||<p class=”MsoNormal” ali|