Super Hi Reports Unaudited Financial Results for the Fourth Quarter and Full Year 2024

SINGAPORE, March 25, 2025 (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 three months ("Fourth Quarter 2024”) and the full year ended December 31, 2024 ("Full Year 2024”).

Fourth Quarter 2024 Highlights

• Revenue was US$208.8 million, representing an increase of 10.4% from US$189.2 million in the same period of 2023.
• In the fourth quarter of 2024, the Company opened 2 restaurants and simultaneously closed 1 restaurant to improve the restaurant configuration. The total number of Haidilao restaurants as of December 31, 2024 was 122, reflecting a net increase of 7 since December 31, 2023.
• Total table turnover rate¹ was 3.9 times per day, and same-store table turnover rate² was 4.0 times per day, both remaining stable compared to the same period of 2023.
• Had over 8.0 million total guest visits, representing an increase of 9.6% from 7.3 million in the same period of 2023. This growth was primarily attributable to restaurant network expansion and increased participation in group dining from the Company's development of diverse group dining scenarios.
• Same-store sales growth³ was 4.2%.
• Income from operation margin⁴ was 8.4%, compared to 6.4% in the same period of 2023.

• Revenue was US$778.3 million, representing an increase of 13.4% from US$686.4 million in the full year of 2023.
• Total table turnover rate¹ was 3.8 times per day, compared to 3.5 times per day in the full year of 2023. Same-store table turnover rate² was 3.9 times per day, compared to 3.6 times per day in the full year of 2023.
• Had over 29.9 million total guest visits, representing an increase of 12.0% from 26.7 million in the full year of 2023.
• Same-store sales growth³ was 7.1%.
• Income from operation margin⁴ was 6.8%, compared to 6.3% in the full year of 2023.

"In 2024, Super Hi continued to explore expansion in overseas markets, strengthening service capabilities for diverse customer segments. In 2024, Haidilao restaurants' average overall table turnover rate was 3.8 times per day, an increase of 0.3 times per day from last year; Haidilao restaurant level operating margin improved by 1.1 percentage points year-over-year. Additionally, we launched the 'Pomegranate plan' in 2024. This strategic initiative draws inspiration from the pomegranate, where each seed represents a unique business form that collectively supports and forms our comprehensive catering service group. These efforts collectively drove a 13.4% year-over-year revenue growth for Super Hi in 2024, with the income from operation margin expanding by 0.5 percentage points during the same year.”

"Looking ahead, we remain committed to our strategic vision of becoming a leading global integrated restaurant group. While continuing to expand our Haidilao restaurant network and optimize our store layout, we will intensify support for the 'Pomegranate plan' to further diversify our business offerings and broaden our customer base.”

Fourth Quarter 2024 Financial Results

Revenue was US$208.8 million, representing an increase of 10.4% from US$189.2 million in the same period of 2023.

• Revenue from Haidilao restaurant operations was US$199.9 million, representing an increase of 10.0% from US$181.7 million in the same period of 2023. The increase was mainly driven by (i) ongoing business expansion and increased brand influence; and (ii) continuous efforts to increase guest visits.
• Revenue from delivery business was US$3.5 million, representing an increase of 12.9% from US$3.1 million in the same period of 2023, primarily due to (i) the expansion of the Company's delivery network; and (ii) enhanced partnerships with local delivery platforms.
• Revenue from other business was US$5.4 million, representing an increase of 22.7% from US$4.4 million in the same period of 2023, driven by (i) the increasing popularity of hot pot condiment products and Haidilao-branded and sub-branded food products among local customers and retailers; and (ii) the incubation of secondary branded restaurants under the Pomegranate plan through strategic exploration of diverse business forms.

Staff costs were US$67.2 million, representing an increase of 9.6% from US$61.3 million in the same period of 2023. The increase was primarily due to (i) an increase in the number of employees in line with restaurant network expansion compared to the same period of 2023, along with an increase in guest visits and table turnover rate; and (ii) the Company's operational strategy of ensuring a sufficient number of employees to provide superior customer experience in catering services, product quality, restaurant environment and food safety. As a percentage of revenue, staff costs remained relatively stable at 32.2% in the fourth quarter of 2024, compared to 32.4% in the fourth quarter of 2023.

Income from operation⁵ was US$17.5 million, representing an increase of 44.6% from US$12.1 million in the same period of 2023. Income from operation margin⁴ was 8.4%, compared to 6.4% in the same period of 2023. This increase in income from operations was mainly attributable to (i) an increase in revenue and table turnover rate as described above; and (ii) an improvement in operational efficiency, especially through the optimization of the global supply chain and enhanced cost control.

Loss for the period was US$11.6 million, compared to a profit of US$23.3 million in the same period of 2023. This change was mainly due to an increase in net foreign exchange loss of US$40.4 million, primarily attributable to foreign exchange fluctuations, particularly the depreciation of local currencies against the U.S. dollar, which is partially offset by (i) an increase in revenue driven by ongoing business expansion and continuous efforts in increasing guest visits and table turnover rate; and (ii) an improvement in operational efficiency.

Basic and diluted net loss per share were both US$0.02, compared to a basic and diluted net profit per share of US$0.04 in the same period of 2023.

Full Year 2024 Financial Results

Revenue was US$778.3 million, representing an increase of 13.4% from US$686.4 million in the full year of 2023.

• Revenue from Haidilao restaurant operations was US$747.3 million, representing an increase of 13.0% from US$661.2 million in the full year of 2023. The increase was mainly driven by (i) the enhanced Haidilao restaurant operations driven by improved table turnover rates and customer traffic growth through the Company's continuous efforts; and (ii) the continued strategic expansion of its business network throughout 2024.
• Revenue from delivery business was US$11.3 million, representing an increase of 15.3% from US$9.8 million in the full year of 2023, primarily due to (i) the growth of the Company's brand influence; and (ii) its continuous efforts in promoting its food delivery services by collaborating with local food delivery platforms.
• Revenue from other business was US$19.7 million, representing an increase of 27.9% from US$15.4 million in the full year of 2023, driven by (i) the increasing popularity of hot pot condiment products and Haidilao-branded and sub-branded food products among local customers and retailers; and (ii) the incubation of secondary branded restaurants through the strategic exploration of diverse business forms.

Staff costs were US$259.3 million, representing an increase of 14.7% from US$226.0 million in the full year of 2023. The increase was primarily due to the increase in the number of employees, which was in line with (i) the expansion of the restaurant network; (ii) the increase in guest visits and table turnover rate; and (iii) our operation strategy of ensuring sufficient number of employees to provide superior customer experience in catering services, product quality, restaurant environment and food safety, as well as the increase in statutory minimum wages in certain countries where we operated. As a percentage of revenue, the Group's staff costs increased from 32.9% in 2023 to 33.3% in 2024.

Income from operation⁵ was US$53.3 million, representing an increase of 23.7% from US$43.1 million in the full year of 2023. Income from operation margin⁴ was 6.8%, compared to 6.3% in the full year of 2023. This increase in income from operations was mainly attributable to an increase in the Group's revenue with economies of scale driving optimization of operating expenses, as well as an improvement in gross profit margin driven by supply chain optimization.

Profit for the year was US$21.4 million, representing a decrease of 15.4% from US$25.3 million in 2023. This change was primarily due to the increase in net foreign exchange loss of US$14.7 million, driven mainly by foreign exchange fluctuations, particularly the depreciation of local currencies against the U.S. dollar, which is partially offset by (ii) an increase in revenue driven by ongoing business expansion and continuous efforts in increasing guest visits and table turnover rate; and (iii) an improvement in operational efficiency.

Basic and diluted net profit per share were both US$0.04, compared to US$0.05 in the full year of 2023.

Non-IFRS Financial Measure

In evaluating the Group's business, the Group considers and uses a non-IFRS measure, restaurant level operating profit margin, which is calculated by dividing (i) restaurant level operating profit by (ii) restaurant level revenue, as supplemental measures to review and assess its operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS Accounting Standards.

Restaurant level operating profit margin is a supplemental measure of operating performance of the Group's restaurants and its calculations thereof may not be comparable to similar measures reported by other companies. Restaurant level operating profit margin has limitations as an analytical tool and should not be considered as a substitute for analysis of the Group's results as reported under IFRS Accounting Standards.

Restaurant level revenue refers to the total revenue generated from the Group's two major service lines - Haidilao restaurant operations and delivery business.

Restaurant level operating profit is calculated by deducting from restaurant level revenue certain restaurant level costs and expenses, including (i) restaurant level expenses, including cost of restaurant level raw materials and consumables used, restaurant level staff costs, restaurant level property rentals and related expenses, restaurant level utilities expenses, restaurant level depreciation and amortization, restaurant level traveling and communication expenses and other restaurant level expenses, including preopening expenses in each region; and (ii) management fees incurred in each region. The cost of restaurant level raw materials and consumables used included the cost of food ingredients and consumables associated with central kitchens that are used within the Group's Haidilao restaurants as well as those procured directly from suppliers.

The Group believes that restaurant level operating profit margin is an important measure to evaluate the performance and profitability of each of the Group's restaurants, individually and in the aggregate. The Group uses restaurant level operating profit margin information to benchmark the Group's performance versus competitors.

The table set forth below reconciles total revenue to restaurant level revenue:

The table set forth below reconciles income from operation, the most directly comparable IFRS measure to the restaurant level operating profit.

(1) Income from operation is calculated by profit for the year excluding interest income (included within other 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 FVTPL and income tax expense.

(2) Other income primarily consists of the subsidies received from the local governments for the Group's business development but does not include non-operating interest income.

(3) Non-restaurant level cost and expenses mainly relate to costs associated with Revenue (Others), operational costs and expenses associated with central kitchens, and corporate and unallocated costs.

(4) Raw materials and consumables used in non-restaurant level operations mainly relate to cost of food ingredients purchased by central kitchens that are not used for Haidilao restaurants, but which are used for sales of hot pot condiment products and food under Haidilao brand and secondary brands to local guests and retailers.

(5) Other gains (losses) - net primarily consist of net impairment (loss) reversal recognized in respect of property, plant and equipment and right-of-use assets, but do not include unrealized foreign exchange differences arising from remeasurement of balances which are not denominated in functional currency and net gain arising on financial assets at FVTPL.

Operational Highlights

Haidilao Restaurant Performance

The following table summarizes key performance indicators of Haidilao's restaurants for the periods indicated.

(1) Others include Australia, the United Kingdom, and the United Arab Emirates.

(2) Calculated by dividing total number of tables served for the years/periods by the product of total Haidilao restaurant operation days for the year/period and average table count during the year/period in the same geographic region.

(3) Calculated by dividing gross revenue of Haidilao restaurant operation for the years/periods by total guests served for the years/periods in the same geographic region.

(4) Calculated by dividing the revenue of Haidilao restaurant operation for the years/periods by the total Haidilao restaurant operation days of the periods in the same geographic region.

Same-Store Sales

The following table sets forth details of the Company's same store sales for the periods indicated.