Westlife Foodworld Q3 Results Review - Weak Delivery; Demand Challenges Persist: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Westlife Foodworld Ltd. reported a weak performance in Q3 FY24 as growth metrics (same store sales growth, average daily sales) were under pressure owing to subdued demand. SSS declined 9% YoY as both dine-in and delivery businesses were hit. The floods in South India also added to the woes. Of the 9% SSS decline, 6% was due to external factors. Net revenue was down 2% YoY despite 11% YoY store growth..Led by subdued growth, restaurant operating margins (restaurant operating margins; post-Ind AS) contacted 130 basis points YoY and 40 bp QoQ to 22.5%. Profit before tax margin was at 4%, down 400 bp YoY and 100bp QoQ. Profit before tax saw a sharp 52% YoY decline during the quarter. The quick service restaurant industry has been witnessing weakness in growth metrics, leading to a sharp deceleration in the margin profile (typical trend in QSR during the downcycle). We do not foresee any near-term respite in demand. We model a 6% PBT margin in FY25E versus 6.6% in FY23 and 4.3% in FY24E. We reiterate our 'Neutral' rating on the stock..Click on the attachment to read the full report:.Star Health Q3 Results Review - Adjusted PAT Beat Of 24%; Combined Ratio Better Than Estimates: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Westlife Foodworld Q3 Results Review - Weak Delivery; Demand Challenges Persist: Motilal Oswal

Weak same store sales growth hits operating performance.

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Westlife Foodworld Q3 Results Review - Weak Delivery; Demand Challenges Persist: Motilal Oswal

Weak same store sales growth hits operating performance.

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