SINGAPORE, June 18, 2024 (GLOBE NEWSWIRE) -- Super Hi International Holding Ltd. (NASDAQ: HDL and HKEX: 9658) (“Super Hi” or the “Company”), a leading Chinese cuisine restaurant brand operating Haidilao hot pot restaurants in the international market, today announced its unaudited financial results for the first quarter of FY2024 ended March 31, 2024.
First Quarter 2024 Highlights
Revenue was US$187.6 million, representing an increase of 16.6% from US$160.9 million in the same period of 2023.
Opened 4 net new Haidilao restaurants in the first quarter of 2024. Total number of Haidilao restaurants expanded from 115 as of December 31, 2023 to 119 as of March 31, 2024.
Total table turnover rate1 and same-store table turnover rate2 were both 3.9 times per day, compared to 3.3 times per day in the same period of 2023.
Had over 7.3 million totalguest visits, representing an increase of 21.7% from 6.0 million in the same period of 2023.
Same-store sales growth3 was 10.0%, compared to 8.8% in the full year of 2023.
Income from operation margin4 was 6.6%, compared to 7.0% in the same period of 2023.
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1 Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count during the period. 2 Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count at the Company’s same stores during the period. 3 Refers to the year-over-year growth of the aggregate gross revenue from Haidilao restaurant operations at the Company’s same stores for the period indicated. 4 Calculated by income from operation divided by total revenue. Income from operation is calculated by (loss) profit for the period excluding interest income, finance costs, unrealized foreign exchange differences arising from remeasurement of balances which are not denominated in functional currency, net gain arising on financial assets at fair value through profit or loss and income tax expense.
Mr. Yu Li, CEO & Executive Director of Super Hi, commented, “We delivered a strong performance in the first quarter of 2024, with a 16.6% increase in revenue and a significant rise in guest visits. Our commitment to enhancing customers’ dining experience, optimizing our services, and expanding our restaurant network has been instrumental in achieving these results. We are particularly pleased with the improvement in our same-store sales growth and table turnover rate, which reflect our ongoing efforts to drive operational excellence. Looking ahead, we will continue to focus on customer satisfaction and employee effort, while exploring new business models and strategic acquisitions to further enrich our offerings and expand our market presence.”
Ms. Cong Qu, Financial Director and Board Secretary of Super Hi, added, “We are thrilled to announce our successful listing on Nasdaq, which marks a significant milestone for Super Hi International Holding Ltd. This achievement not only enhances our visibility in the global market but also provides us with additional resources to support our growth initiatives. Our financial performance in the first quarter of 2024 demonstrates our ability to effectively execute our strategic plans. As we move forward, we remain committed to optimizing our supply chain, building our brand, and leveraging digital support to empower our restaurants and drive sustainable growth.”
First Quarter 2024 Financial Results Revenue was US$187.6 million, representing an increase of 16.6% from US$160.9 million in the same period of 2023.
Revenue from Haidilao restaurant operations was US$180.3 million, representing an increase of 15.7% from US$155.8 million in the same period of 2023. The increase was mainly driven by (i) continued recovery in international markets; (ii) enhanced operational performance of Haidilao restaurants, which resulted in higher table turnover rates and increased guest visits; and (iii) ongoing business expansion and increased brand influence.
Revenue from delivery business was US$2.9 million, representing an increase of 61.1% from US$1.8 million in the same period of 2023. The increase was mainly driven by (i) increased brand influence; and (ii) the Company’s efforts to enhance partnerships with local delivery platforms.
Revenue from other business was US$4.4 million, representing an increase of 33.3% from US$3.3 million in the same period of 2023. This was a result of the growing popularity of hot pot condiment products and Haidilao-branded and sub-branded food products to local customers and retailers.
Raw materials and consumables used were US$62.8 million, representing an increase of 16.5% from US$53.9 million in the same period of 2023. As a percentage of revenue, raw materials and consumables used remained stable at 33.5% in the first quarter of 2024, unchanged from the same period of 2023.
Staff costs were US$63.6 million, representing an increase of 19.8% from US$53.1 million in the same period of 2023. As a percentage of revenue, staff costs were 33.9%, compared to 33.0% in the same period of 2023. The increase was primarily due to the increase in the number of employees in line with the expansion of restaurant network and the increase in guest visits and table turnover rate, as well as the increase in piece rate wages for the employees.
Income from operations was US$12.4 million, representing an increase of 9.7% from US$11.3 million in the same period of 2023. Income from operation margin was 6.6%, compared to 7.0% in the same period of 2023. This was primarily due to (i) an increase in revenue, partially offset by increase in raw materials and consumables used and staff costs as described above, (ii) a decrease in other income of US$2.2 million resulting from a decrease in government grants received during the three months ended March 31, 2024, and (iii) listing expenses of US$0.6 million.
Loss for the period was US$4.5 million, compared to an income of US$5.6 million in the same period of 2023. This was due to an increase in other losses of US$11.2 million mainly contributed by unrealized foreign exchange losses resulting from the weakening of other currencies against U.S. dollars.
Basic and diluted net loss per share were both US$0.01, compared to a basic and diluted net income per share of US$0.01 in the same period of 2023.
Operational Highlights
Haidilao Restaurant Performance The following table summarizes key performance indicators of Haidilao restaurants for the quarters indicated.
As of/For the Three Months Ended March 31,
2024
2023
Number of restaurants
Southeast Asia
72
69
East Asia
18
17
North America
19
18
Others(1)
10
10
Total
119
114
Total guest visits(million)
Southeast Asia
5.1
4.4
East Asia
0.8
0.6
North America
0.9
0.6
Others(1)
0.5
0.4
Overall
7.3
6.0
Table turnover rate(2) (times per day)
Southeast Asia
3.7
3.3
East Asia
4.2
3.1
North America
4.2
3.2
Others(1)
3.8
3.3
Overall
3.9
3.3
Average spending per guest(3) (US$)
Southeast Asia
19.4
20.8
East Asia
28.4
28.8
North America
43.3
51.3
Others(1)
42.2
41.1
Overall
24.9
26.0
Average daily revenue per restaurant(4) (US$ in thousands)
Southeast Asia
15.8
15.2
East Asia
16.1
11.9
North America
21.5
19.3
Others(1)
24.4
22.4
Overall
17.5
15.9
Notes:
(1) Others include Australia, the United Kingdom and the United Arab Emirates.
(2) Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count during the period in the same geographic region.
(3) Calculated by dividing the revenue generated from Haidilao restaurant operations for the period by total guest visits for the period in the same geographic region.
(4) Calculated by dividing the revenue from Haidilao restaurant operations for the period by the total Haidilao restaurant operation days for the period in the same geographic region.
Same-Store Sales The following table sets forth details of the Company’s same store sales for the quarters indicated.
As of/For the Three Months Ended March 31,
2024
2023
Number of Same Stores(1)
Southeast Asia
65
East Asia
14
North America
18
Others(5)
7
Total
104
Same Store Sales(2) (US$ in thousands)
Southeast Asia
93,125
89,780
East Asia
21,091
16,567
North America
36,256
31,189
Others(5)
16,246
13,989
Total
166,718
151,525
Average same store sales per day(3) (US$ in thousands)
Southeast Asia
15.9
15.6
East Asia
16.6
13.4
North America
22.1
19.3
Others(5)
25.5
22.3
Total
17.7
16.4
Average same store table turnover rate(4) (times/day)
Southeast Asia
3.8
3.3
East Asia
4.3
3.2
North America
4.2
3.2
Others(5)
3.8
3.3
Total
3.9
3.3
Notes:
(1) Includes restaurants that commenced operations prior to the beginning of the periods under comparison and opened for more than 75 days in the first quarter of 2023 and 2024, respectively.
(2) Refers to the aggregate gross revenue from Haidilao restaurant operations at our same stores for the period indicated.
(3) Calculated by dividing the gross revenue from Haidilao restaurant operations for the period by the total Haidilao restaurant operation days at our same stores for the period.
(4) Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count at our same stores during the period.
(5) Others include Australia, the United Kingdom and the United Arab Emirates.
Recent Developments In May 2024, the Company issued 3,096,600 American Depositary Shares (“ADSs”), at a price of US$19.56 per ADS, for a total offering size of US$60.57 million, before deducting underwriting discounts and commissions and other offering expenses payable by Super Hi.
About Super Hi Super Hi operates Haidilao hot pot restaurants in the international market. Haidilao is a leading Chinese cuisine restaurant brand. With roots in Sichuan from 1994, Haidilao has become one of the most popular and largest Chinese cuisine brands in the world. With almost 30 years of brand history, Haidilao is well-loved by guests for its unique dining experience — warm and attentive service, great ambiance and delicious food, standing out among global restaurant chains, which has made Haidilao restaurants into a worldwide cultural phenomenon. As of March 31, 2024, Super Hi had 119 self-operated Haidilao restaurants in 13 countries across four continents, making it the largest Chinese cuisine restaurant brand in the international market in terms of number of countries covered by self-operated restaurants.
Forward-Looking Statements This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. SUPER HI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “SEHK”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about SUPER HI’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: SUPER HI’s operations and business prospects; future developments, trends and conditions in the industry and markets in which SUPER HI operates; SUPER HI’s strategies, plans, objectives and goals and SUPER HI’s ability to successfully implement these strategies, plans, objectives and goals; SUPER HI’s ability to maintain an effective food safety and quality control system; SUPER HI’s ability to continue to maintain its leadership position in the industry and markets in which SUPER HI operates; SUPER HI’s dividend policy; SUPER HI’s capital expenditure plans; SUPER HI’s expansion plans; SUPER HI’s future debt levels and capital needs; SUPER HI’s expectations regarding the effectiveness of its marketing initiatives and the relationship with third-party partners; SUPER HI’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to SUPER HI’s industry; SUPER HI’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in SUPER HI’s filings with the SEC and the announcements and filings on the website of the SEHK. All information provided in this press release is as of the date of this press release, and SUPER HI does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
