Restaurant Brands Asia Limited · NSE:RBA
Restaurant Brands Asia — Q1 FY25 Earnings Presentation
29 slides from Restaurant Brands Asia's earnings presentation, Jul 29, 2024
Slide 1: Exchange filing cover letter
July 29, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department Phiroze Jeejeeboy Towers Exchange Plaza, 5th Floor, Plot no. C/1, Dalal Street, Fort, G Block, Bandra Kurla Complex, Bandra (E) Mumbai- 400 001 Mumbai- 400 051 Scrip Code: 543248 SYMB
Slide 2: Restaurant Brands Asia Limited Investor Presentation
Restaurant Brands Asia Limited Investor Presentation July 29, 2024
Slide 3: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 4: Business Strategy
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Slide 5: Evolution of RBA – First Decade!
Evolution of RBA – First Decade! Restaurant Count Café Count 455 391 315 260 265 187 351 35 275 FY19 FY20 FY21 FY22 FY23 FY24 Developed a locally Built 455 restaurant network Launched strong Value relevant menu for the with a reliable and efficient propositions to drive Indian consumer supply chain
Slide 6: India - Key Priorities
India - Key Priorities Grow Dine In Traffic Digital First Brand Profitability Focus Strengthen Value Improve Delivery Scale up King’s Journey Leadership Profitability across Dine In channel Build New Occasions Continue to Drive Build BK App as a Efficiencies Across the P&L Foundation for CRM Restaur
Slide 7: Indonesia – Journey so far
Indonesia – Journey so far Operational Excellence Long Term Brand Strategy Geopolitical Geopolitical Headwinds ADS (IDR Mn) Headwinds 22.5 20.5 19.4 19.8 19.2 19.1 22.2 18.1 18.1 17.6 17.0 16.8 18.4 14.6 18.4 17.6 17.3 16.9 16.9 16.9 15.1 15.9 Q1 FY24 Q2 FY24 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-2
Slide 8: Indonesia - Key Measures to Cash Break Even
Indonesia - Key Measures to Cash Break Even One-time initiatives Ongoing Rationalized Portfolio Optimised Costs Store Profitability Menu Relevance • Closed 26 under • Substantial reduction in • Focus on delivery sales • Launch of new spicy performing BK stores in corporate overheads by to overcome g
Slide 9: Q1 FY25 Financial Performance
Q1 FY25 Financial Performance
Slide 10: India Q1 FY25 – Operational and Business Highlights
India Q1 FY25 – Operational and Business Highlights 456 INR 119K INR 4,905 Mn Stores Average Daily Sales Revenue from Operations +1 QoQ | +60 YoY +3.1% +16% YoY SSSG as on Highest Quarterly Revenue 30 June, 2024 Traffic growth across channels Ever in Q1 FY25 67.6% INR 435 Mn INR 175 Mn Gross Margin
Slide 11: India Business Summary : Q1 FY25
India Business Summary : Q1 FY25 Restaurant Count BK Café ADS (INR '000) Revenue (INR Mn) SSSG% 3.6% 3.5% 2.6% 1.9% 3.1% Delivery 455 456 Mix% 39% 43% 44% 45% 42% 441 396 404 120 126 119 119 4,905 105 4,535 4,454 4,391 4,221 351 352 334 286 297 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24
Slide 12: India Operating Performance
India Operating Performance Particulars (INR Million) Q1 FY25 % Q1 FY24 % Q4 FY24 % FY24 % Revenue from operations 4,905 100.0% 4,221 100.0% 4,391 100.0% 17,601 100.0% YoY Growth% 16% 25% 20% 22% Cost of materials consumed 1,587 32.4% 1,415 33.5% 1,419 32.3% 5,802 33.0% Gross Profit 3,318 67.6% 2,80
Slide 13: Indonesia Q1 FY25 – Operational and Business Highlights
Indonesia Q1 FY25 – Operational and Business Highlights Burger King Popeyes Indonesia 149 25 IDR 302.4 Bn Stores Stores Revenue from Operations -1 QoQ I -20 YoY +15 YoY -11% YoY Rationalized portfolio by closing non performing stores Due to store closure IDR 19.4 Mn IDR 17.9 Mn IDR (17.3 Bn) Average
Slide 14: Indonesia Operating Performance
Indonesia Operating Performance Q1 Q1 Q4 Particulars (INR Million) % % % FY24 % FY25 FY24 FY24 Revenue from operations 1,562 100.0% 1,887 100.0% 1,581 100.0% 6,770 100.0% YoY Growth% -17% 24% 6% 10% Cost of materials consumed 709 45.4% 781 41.4% 717 45.3% 2,917 43.1% Gross Profit 853 54.6% 1,106 58.
Slide 15: Consolidated Operating Performance
Consolidated Operating Performance Q1 Q1 Q4 Particulars (INR Million) % % % FY24 % FY25 FY24 FY24 Revenue from operations 6,467 100.0% 6,108 100.0% 5,971 100.0% 24,371 100.0% YoY Growth% 6% 25% 16% 19% Cost of materials consumed 2,296 35.5% 2,196 36.0% 2,136 35.8% 8,720 35.8% Gross Profit 4,171 64.5
Slide 16: Marketing Initiatives - India
Marketing Initiatives - India
Slide 17: Continuing Value Leadership with 2for79 & Meal Deals
Continuing Value Leadership with 2for79 & Meal Deals • Continue Value Leadership with launch of 2for79 campaign to drive incremental traffic over LY • 2 Crispy Veg Burgers @ 79 • 2 Crispy Chicken Burgers @ 99 • Meal Strategy continue to have dedicated guest base • 99 Tasty Meals platform moved to BK
Slide 18: BK Café to Drive Increased Guest Occasions
BK Café to Drive Increased Guest Occasions • 352 Café restaurants in India (78% of the portfolio) • Increase BK Café share of revenue through menu expansion and trial programs • Focus on building new occasions with Café Restaurant Brands Asia Limited | 29 July 2024 | Q1 FY25 17
Slide 19: Portfolio Expansion : Snacking
Portfolio Expansion : Snacking • Strengthened Snacking Add on Menu • Promising results of pilot launch of BK Pizza Puff in North Restaurant Brands Asia Limited | 29 July 2024 | Q1 FY25 18
Slide 20: Digital Transformation : King’s Journey execution by Dec’24
Digital Transformation : King’s Journey execution by Dec’24 Self Ordering Kiosk Table Ordering Table Service 143 stores All stores excluding Food court All stores excluding Food court 92% Dine IN digital orders in SOK stores Restaurant Brands Asia Limited | 29 July 2024 | Q1 FY25 19
Slide 21: BK App : Creating Known Customer Diner Base via App Offers
BK App : Creating Known Customer Diner Base via App Offers App Dine-in Offers App Install growth • Cumulative install base at 11.5 Mn • QoQ - 70% growth in app install • Organic growth through in-store push App Dine-in Order • Driven via app exclusive dine-in offer • Q1 FY25 – 2.7X growth in users o
Slide 22: Building Brand Love with Engaging Content
Building Brand Love with Engaging Content Cricket VFM Indian Moment Content, UGCs Country Focus Festivals Marketing & Giveaways Restaurant Brands Asia Limited | 29 July 2024 | Q1 FY25 21
Slide 23: Business Update - Indonesia
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Slide 24: Challenging Q1 FY25 for Burger King Indonesia
Challenging Q1 FY25 for Burger King Indonesia Average Daily Sales In IDR mio Q1 YoY -1% growth led by Dine-in. ADS 19.4M vs 19.5 LY. • 2nd wave of crisis impacted sales Geopolitical New FY Geopolitical recovery momentum Headwinds Headwinds 22.5 20.5 • Continued focus on delivery channel to 19.8 22.2
Slide 25: FY25 Marketing Priorities - Burger King
FY25 Marketing Priorities - Burger King Build Relevance & Credibility Establish Leadership in Burgers of Chicken Menu Launch New Spicy Chicken • Whopper Jr Trials: Entry Value promo @ IDR 17K • Whopper Taste Supremacy : Further improvise overall flavours & taste – Q4 25 Dessert Innovation to Gain Sh
Slide 26: Popeyes Indonesia: Build Awareness, Trial and Digital-First Experience
Popeyes Indonesia: Build Awareness, Trial and Digital-First Experience Strengthen Digital-First Build Brand & Product Awareness Build Traffic Driver Proposition Build Value Value Proposition Guest Experience FY24 FY24 FY24 • Educate & Discover: In-stores Video Wall & Digital • Pricing: Competitive P
Slide 27: Outlook
rha restaurant brands asia Outlook
Slide 28: The Way Forward
The Way Forward Detail FY 24 Q1 FY25 Outlook • 510 Restaurants by FY25 Restaurant Count - India 455 Restaurants 456 Restaurants • 700 Stores by FY27 as per MFDA • ~ 69% by FY27 primarily driven by Gross Profit - India 67.0% 67.6% increasing profitability in the Delivery Business Restaurant Cash Loss
Slide 29: Thank You
Thank You Restaurant Brands Asia Limited CIN: L55204MH2013FLC249986 For further information, please contact: Mr. Gaurav S. Ajjan, CFA Head of Strategy and Investor Relations gaurav.ajjan@rbrandsasia.com
Restaurant Brands Asia — Q1 FY25 Earnings Presentation on 6ix