Westlife Foodworld Ltd, owner-operator of McDonald’s restaurants across West and South India, reported a 98.4% decline in consolidated profit after tax at Rs 35.78 lakh for the second quarter ended September 2024, impacted by higher expenses and subdued in-store business.
The company had posted a consolidated profit after tax (PAT) of Rs 22.37 crore in the corresponding quarter previous fiscal, Westlife Foodworld Ltd (WFL) said in a regulatory filing. Its consolidated total revenue from operations in the quarter under review stood at Rs 618 crore compared to Rs 614.73 crore in the year-ago period, it added. The total expenses were higher at Rs 623.77 crore compared to Rs 587.82 crore in the same period a year ago.
During the second quarter, same-store sales growth (SSSG) declined 6.5% year-on-year, owing to subdued in-store business, the company said. However, the off-premise business saw broadly stable same-store sales, with a 5% year-on-year growth led by delivery and ‘Drive-Thrus’, it added.
Westlife Foodworld Chairperson Amit Jatia said the company has always focused on driving strategic initiatives to bolster its market position and deliver long-term value for shareholders.
“Our investments in expanding our off-premise channels, driving menu innovation, and enhancing our digital capabilities are some of the key pillars of our growth strategy. We believe these efforts will help us navigate the current headwinds,” he added.
The company said it opened eight new restaurants in the quarter, with a focus on South India, smaller towns, and drive-thrus. Westlife Foodworld is targeting 45-50 new stores in FY25 and aims to reach 580-630 restaurants by 2027, it added.
(Source: PTI)
