Westlife Foodworld Faces Financial Setback Amid Strategic Expansions

Westlife Foodworld Ltd, operator of McDonald's in West and South India, saw a 98.4% drop in profit after tax to Rs 35.78 lakh for Q2 ending September 2024, due to higher expenses and a downturn in in-store business. However, the off-premise business stabilized with 5% growth.

Westlife Foodworld Ltd, which manages McDonald's outlets across West and South India, announced a significant 98.4% drop in consolidated profit after tax, settling at Rs 35.78 lakh for the second quarter ending September 2024. This decline was primarily due to increased expenses and reduced in-store activities.

In a stark comparison, the company had recorded a consolidated profit of Rs 22.37 crore in the same quarter the previous fiscal year, according to Westlife Foodworld Ltd's regulatory filing. The current quarter reported revenues from operations totaling Rs 618 crore, a slight rise from Rs 614.73 crore in the year-ago period, though expenses surged to Rs 623.77 crore from Rs 587.82 crore.

Amid challenges, Westlife Foodworld's off-premise business showed resilience with a same-store sales growth of 5%, attributable to deliveries and 'Drive-Thrus'. Chairperson Amit Jatia emphasized the company's commitment to long-term growth through strategic investments in digital capabilities and menu innovation, despite current economic obstacles.

(With inputs from agencies.)