Haidilao operator Super Hi swings to US$11.9 million Q1 profit on forex gains, delivery growth
[SINGAPORE] Super Hi International, the operator of Haidilao's international business, posted a net profit of US$11.9 million for the first quarter ended Mar 31, reversing a net loss of US$4.5 million in the same period the year before.
The turnaround was mainly driven by a US$20.4 million reduction in net foreign exchange losses due to currency fluctuations – particularly the revaluation of local currencies against the US dollar – said Super Hi in a press release on May 21.
Earnings per share for the company – which is listed on both the Nasdaq and Stock Exchange of Hong Kong – stood at US$0.02, up from a loss of US$0.01 a year earlier.
Revenue rose 5.4 per cent year on year (yoy) to US$197.8 million, from US$187.6 million.
This was led by a 37.9 per cent increase in revenue from the delivery business to US$4 million, up from US$2.9 million from the year-ago period.
Super Hi attributed the jump in delivery revenue to sustained investment and marketing efforts in the delivery business, as well as the expansion of its delivery network alongside growing restaurant coverage.
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Revenue from restaurant operations grew by 4.5 per cent to US$188.4 million, while that from its other business, including retail food products, rose 22.7 per cent to US$5.4 million.
Super Hi did not disclose the performance of its Singapore operations, but noted that average daily revenue per restaurant in South-east Asia fell 3.2 per cent to US$15,300.
In contrast, average daily revenue rose by 19.9 per cent in East Asia to US$19,300, and by 3.3 per cent in North America to US$22,200.
Its income from operation fell 33.9 per cent yoy to US$8.2 million, while income from operation margin narrowed to 4.1 per cent from 6.6 per cent.
The decline was mainly due to higher spending on customer and employee benefit initiatives; increased outsourcing and maintenance costs from network expansion; and higher short-term lease payments.
Total guest visits rose 6.8 per cent yoy to 7.8 million.
The group also opened four new Haidilao outlets and closed three underperforming ones during the quarter.
As at end-March, it operated 123 restaurants outside China, up 3 per cent from 119 a year earlier, with South-east Asia remaining its largest market (73 outlets).
Chief executive and executive director Yang Lijuan said Super Hi focused on refining operational strategies during the first quarter of the year, to boost customer value and loyalty through pricing adjustments, improved portion value and more diverse dining formats.
Yang said the group will continue advancing its 'Pomegranate Plan', launched in 2024 to drive product diversification.
The initiative aims to grow new dining formats such as fast food and halal hotpot, supported by specialised teams in operations, product development and marketing.
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