Burger King India Q1 results: Net loss narrows on-year; sales rise 289%

MUMBAI: Burger King India today reported a net loss of Rs 44.35 crore for the quarter ended June as against a net loss of Rs. 80.45 crore in the year-ago quarter.

The company’s sales in the quarter surged 289 per cent year-on-year to Rs. 149.7 crore aided by a depressed base of the year-ago quarter.

On a sequential basis, the company suffered from the onset of the second wave of the pandemic as net loss widened from Rs. 25.9 crore in the previous quarter while sales tanked 24 per cent on quarter.

The company said that recovery in sales was at 76 per cent by the end of the June quarter when compared to the March quarter as business was substantially impacted due to the second Covid-19 wave leading to lockdown restrictions from early April 2021 in most parts of the country.

However, the delivery business of the company thrived during pandemic times with average daily sales at 157 per cent of the 2020-21 level. Burger King India said that average daily sales in July were at 92 per cent of the 2020-21 level aided by the gradual easing of restrictions in several parts of the country.

On the operating front, Burger King India fared better as it reported a company-wide operating profit of Rs. 1.5 crore with operating margins at 1 per cent. The restaurant business’ operating profit was at Rs. 16.1 crore in the quarter with a margin of 10.7 per cent.

In the year-ago quarter, the company had reported an operating loss of Rs. 29.1 crore at the company level while the restaurant business’ operating loss stood at Rs. 18.2 crore. Crucially, gross margins for the company remained stable at 65.2 per cent as against 65.6 per cent in the previous quarter.

Despite lockdown, Burger King India managed to open five new stores during the quarter to take its store count to 270. The company suggested that it was on track to deliver 320 restaurants in 2021-22.

Shares of Burger King ended 0.8 per cent lower at Rs. 170.6 on the National Stock Exchange.