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Westlife Development posts single-digit same-store sales growth in Q4

Westlife Development posts single-digit same-store sales growth in Q4 – The Financial Express

By: FE Bureau |

Published: May 16, 2019 12:33:18 AM

Westlife Development (WDL) posted a single-digit same-store sales growth (SSSG) of 5.6% y-o-y in the three months to March. This comes after five consecutive quarters of double-digit growth and a high base of 25.10% in the quarter ended March 2018.

Westlife Development posts single-digit same-store sales growth in Q4 (Website image)

Westlife Development (WDL) posted a single-digit same-store sales growth (SSSG) of 5.6% y-o-y in the three months to March. This comes after five consecutive quarters of double-digit growth and a high base of 25.10% in the quarter ended March 2018.

Amit Jatia, vice chairman, Westlife Development, said on Tuesday this was the 15th quarter with a positive growth in sales. In FY19, we saw an SSSG of 17% y-o-y. We will maintain a sustainable SSSG of 7% -9% as I don’t think it is possible to maintain a growth trajectory of 20-25%. But a sustainable number is deliverable even when consumer sentiments do shift,” Jatia told a news channel.

WDL, owner of Hardcastle Restaurants, the master franchisee of McDonald’s restaurants in West and South India, announced a revenue growth of 12.05% year-on-year at `339.17 crore for Q4FY19. Reveues grew due to the contribution from brand extensions in McDelivery, McCafe, McBreakfast and online orders which numbered more than in-store orders. McDelivery service has grown more than four times in the past three years.

The net profit grew by 7.9% y-o-y to `7.14 crore in Q4FY18. The earnings before interest, tax, depreciation and amortisation (Ebitda) stood at `3.2 crore, up by nearly 14% y-o-y. During FY19, the Ebitda saw growth of 9% y-o-y, which is less than the 2022 vision to reach between 13% and 15%. Jatia said an improvement of 100 basis points every year will help WDL to achieve such a growth.

The quick service restaurant chain added seven restaurants in Q4FY19, taking the total count to 296 across 41 cities. During the quarter under review, eight McCafes ‘were added to reach an aggregate of 190 McCafes’. McDelivery added 51 delivery hubs during FY19, with the current total reaching 216.

While commenting on the declining consumption, Jatia said, “Consumer sentiments are slightly impacted and there are headwinds. But we are able to perform with our value services given to the customers, especially, the value platform like McSaver (which replaced Happy Meal) to provide price points to the consumers. Our new application with value offers is also helping us.”

When asked whether WDL plans to expand in the North and East markets as McDonald’s India acquired full ownership from Vikram Bakshi’s Connaught Plaza Restaurants, which handled McDonald’s entity in North and East India, Jatia said that the company’s vision 2022 only talks about Western and Southern part of India. “We have such a vast territory and so, we continue to maintain our focus on West and South,” he added.

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Source: Financial Express