Super Hi International Holding (9658) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached $371 million, up 14.5% year-over-year, driven by increased guest visits, higher table turnover, and network expansion to 122 stores in 13 countries.

• Guest visits totaled 14.5 million, up 17.9% year-over-year, with average table turnover rate rising to 3.8 per day.

• Eight new stores opened (5 in Southeast Asia, 2 in North America, 1 in East Asia), one underperforming store closed.

• Focus on guest satisfaction, localization, and multi-brand strategy (Pomegranate Plan) to drive future growth.

• Ms. Yang Lijuan appointed CEO and executive director, effective July 1, 2024.

Financial highlights

• Revenue for H1 2024 was $370.9 million, up from $323.9 million in H1 2023.

• Haidilao restaurants contributed $356 million (96% of revenue); Southeast Asia led with $196 million (54.9%).

• Gross profit margin improved to 66.4%, up 0.1 percentage point year-over-year.

• Staff costs rose to $126 million (34% of revenue) due to increased staffing and wage hikes.

• Operating profit was $21.2 million; operating profit margin at 5.6%, down from 6.5% in H1 2023.

• Net profit for H1 2024 was $17.7 million, reversing a net loss of $4.65 million in H1 2023; net profit margin improved to 4.8%.

• Operating cash flow was $48 million, with capital expenditures at $14 million.

Outlook and guidance

• Strategy remains focused on guest experience, network expansion, and new business incubation.

• No fixed targets for store openings; bottom-up approach with incentives for country managers.

• Multi-brand expansion (fast food, halal hot pot, noodles) to leverage supply chain and management synergies.

• Targeting long-term operating margins in the 10%-15% range.

• Emphasis on balancing quality and quantity in network expansion.