Westlife Foodworld shares saw a plunge in value on Friday after the fast food restaurant holding company announced a drop in its consolidated net profit by 29.05%, settling at ₹22.37 crore for the quarter ending September 2023, attributing the decline to tough market conditions.
Westlife Foodworld Q2 Performance: In comparison, the company recorded a net profit of ₹31.53 crore in the same quarter the previous year. Westlife Foodworld’s subsidiary, Hardcastle Restaurants, holds the master franchise for McDonald’s outlets in West and South India.
Despite the profit dip, the company’s sales saw a 7.11% increase, reaching ₹610.82 crore, up from ₹570.23 crore in the corresponding quarter of the last fiscal year. The company highlighted this sales growth in their earnings statement, emphasizing its capacity for maintaining growth and profitability.
However, Westlife Foodworld’s operating costs and expenses for the September quarter went up by 9.73%, amounting to ₹587.82 crore. Their total revenues for the same period also rose by 7.39%, reaching ₹614.73 crore.
Amit Jatia, the Chairperson of Westlife Foodworld, commented on the results, praising the company’s consistent execution strategy amidst the market challenges. He emphasized the effectiveness of their omnichannel approach, menu innovations, and thoughtful network expansion. Jatia also mentioned their ongoing investments in new stores and other growth avenues, aiming to deliver value to all stakeholders.
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As of September 2023, Hardcastle Restaurants operates 370 McDonald’s outlets across various regions in India.
Price Action: Westlife Foodworld shares were trading 6.45% lower at ₹825.95 on Friday. The company’s shares closed 2.05% lower, priced at ₹879.40 each on Thursday.
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