SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR ((HDL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR revealed a balanced sentiment, reflecting both achievements and challenges. The company reported significant revenue growth and international market expansion, yet faced declines in net profit and operating profit margin, alongside increased expenses. This mixed sentiment underscores the company’s current position of navigating through both positive developments and hurdles.
Revenue Growth
The company reported a Q3 2025 revenue of USD 214 million, marking a 7.8% increase year-over-year. Haidilao’s same-store revenue also saw a growth of 2.3%, highlighting the company’s ability to boost sales despite challenging market conditions.
Improvement in Operating Profit
Operating profit saw a remarkable increase of USD 8.9 million, or 240.5%, compared to Q2. The operating profit margin also rose by 4 percentage points from the previous quarter, indicating improved operational efficiency.
Expansion in Table Turnover Rate
The overall table turnover rate in Q3 was 3.9x, with a same-store table turnover rate of 4x, both showing an increase of 0.1x compared to last year. This suggests a slight improvement in customer flow and service efficiency.
International Expansion
The company continued its international expansion by opening two new Haidilao stores in Malaysia and Indonesia, bringing the total to 126 overseas restaurants. Additionally, new brands like Hi Bowl in Canada and Sparkora BBQ in Indonesia were launched, showcasing the company’s strategic growth in diverse markets.
Growth in Takeaway Revenue
Takeaway revenue reached USD 4.4 million, a significant 69.2% rise from the previous year. This growth reflects the increasing consumer preference for convenient dining options.
Decline in Operating Profit Margin
Despite the quarterly improvements, the Q3 operating profit margin was 5.9%, down 1.6 percentage points year-over-year. This decline highlights ongoing challenges in maintaining profitability amidst rising costs.
Net Profit Decline
Net profit after tax fell sharply to USD 3.59 million from USD 37.6 million last year, primarily due to foreign exchange losses. This significant drop underscores the financial pressures the company is facing.
Increased Operating Expenses
Operating expenses, including travel and other costs, rose to USD 23.7 million, up 11.1% year-over-year. This increase in expenses is a concern for the company’s cost management strategies.
Average Order Value Decrease
The average order value decreased to USD 24.6, down USD 1.2 from USD 25.8 last year. This decline is attributed to strategic adjustments in menu pricing, which may impact overall revenue.
Forward-Looking Guidance
Looking ahead, SUPER HI INTERNATIONAL is focused on strategic initiatives such as the Pomegranate and Woodpecker plans, alongside ongoing store expansions. The company plans to enhance its offerings with new concepts like fresh-cut meat and nightclub-style themes, and aims to integrate technology and AI to boost efficiency. The emphasis remains on balancing customer satisfaction with operational improvements and employee incentives to ensure long-term profitability.
In conclusion, the earnings call for SUPER HI INTERNATIONAL HOLDING LTD. reflected a balanced sentiment with both positive strides and notable challenges. While revenue growth and international expansion are promising, the decline in net profit and increased expenses pose significant hurdles. The company’s forward-looking strategies aim to address these challenges and drive sustainable growth.