Westlife Foodworld, the operator of McDonald’s restaurants in West and South India, has announced a 31% increase in its consolidated net profit to INR 20.09 crore for the fourth quarter (Q4) ending on March 31, 2023. This is compared to a consolidated net profit of INR 15.32 crore during the same quarter in the previous fiscal year, according to a regulatory filing.
In Q4 FY23, the company experienced a 22.2% growth in revenue from operations, reaching INR 556.37 crore, compared to INR 455.07 crore in the same period of the previous fiscal year.
The company’s revenue increase was primarily due to a double-digit growth in dine-in customers, resulting in a 38% YoY growth in on-premise business. Additionally, the McDelivery platform, the company’s own delivery channel, experienced a strong increase in its user base, with digital sales accounting for approximately 62% of the total. This was largely driven by the use of self-ordering kiosks (SOKs), as per the company’s earnings presentation.
According to the BSE filing, the company’s total expenses increased to INR 534.22 crore in Q4 FY23 from INR 447.63 crore in the same quarter of the previous fiscal year.
As a result of the strong revenue growth, the company’s restaurant operating margin increased by 34% YoY, reaching INR 136.4 crore.
Despite facing inflationary pressures and macroeconomic headwinds, the company’s operating EBIDTA increased by 26% YoY to INR 91.9 crore.
Amit Jatia, Vice-Chairman of the company said, “We were not only able to strengthen our value proposition but were also able to capitalize on our momentum to promote long-term sustainable growth for all our stakeholders. I believe we are on a strong growth trajectory and will continue to build on our competitive strengths and further our business advantage.”
By March 2023, Westlife had a total of 357 restaurants operating in 56 cities, which comprised of 68 Drive-Thrus, 311 McCafés, and 220 Experience of the Future (EOTF) restaurants.
