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Barbeque Nation Financials Q4FY21 - Barbeque Nation Valuation | Invest Yadnya

Barbeque Nation Hospitality Ltd Earnings Call Highlights Q4 FY21

Published on 28 June 2021 Views 65 Comments 0

Q4 Financial Highlights (on a consolidated basis including the impact of INDAS 116): Barbeque Nation Financials & Barbeque Nation Financial Results

  • Revenue from operations increased 18.5% YoY to Rs.2263 Mn in Q4.

  • Restaurant revenue increased 151% YoY to Rs.464 Mn with a margin of 20.5% on account of strong sales recovery, higher gross margin, and various other cost optimisation measures undertaken by the company.

  • The delivery channel continued to grow even after the recovery of our dine-in business. As a result, delivery revenue increased 471% YoY to Rs.285 Mn in Q4.

  • The reported EBITDA increased 128% YoY to Rs.561 Mn with a margin of 24.8%. This improvement was driven by a recovery in the dine-in business and increased efficiency, reducing food wastages.

  • The profit before tax stood at Rs. 83 Mn in Q4FY21 over Rs. -370 Mn in Q4FY20

  • The net profit for the quarter stood at Rs. 64 Mn in Q4FY21 over Rs. -279 Mn in Q4FY20.

  • Cash flow from operation continues to be strong in Q4, and with the capital raise in April 2021 and debt repayment, the drag on cash profits from interest expense is reduced.

  • The share of business coming from own digital platforms increased from 20.1% in Q4FY20 to 24.7% as of Q4FY21.

FY21 Financial Highlights (on a consolidated basis including the impact of INDAS 116): Barbeque Nation Annual Report & Barbeque Nation Analysis

  • Revenue from operations increased 40.1% to Rs.5071 Mn in FY21. Delivery revenue increased 195% to Rs.770 Mn in FY21 & Restaurant revenue increased 69.1% YoY to Rs.445 Mn with a margin of 8.8%

  • The reported EBITDA increased 128% YoY to Rs.561 Mn with a margin of 18.2%

  • The profit before tax stood at Rs. -1151 Mn in FY21 over Rs. -215 Mn in FY20

  • The net profit for the year stood at Rs. -919 Mn in FY21 over Rs. -329 Mn in FY20.

Delivery through Barbeque-in-a-Box:

  • The company launched Barbeque in a Box and also offering deliveries through the app. It’s a zero-investment business that is using the leverage of the company’s existing store networks.

  • Barbeque in a Box is an assembly of a good set of starters, desserts, main course, biryani, and to cater to the celebration segment of consumer needs in the delivery segment.

  • The delivery business contributes 60% to 70% of the revenue.

  • The company is planning to grow more points of sales and extension kitchens as the Indian cuisine delivery market is among the largest.

  • With a strong digital presence through its app and third-party delivery apps, the delivery segment has grown.

New Initiative: Barbeque Nation Results & Barbeque Nation Fundamentals

  • The company’s strategic focus is on growing the delivery channel and strong balance sheet to overcome the short-term challenges posed by the second wave of the pandemic.

  • BBQ remains focused on investments in digital platforms covering reservation, delivery, and loyalty.

Future Planning: Barbeque Nation Valuation & Barbeque Nation Value Research

  • The company is planning to grow the delivery business further and grow it to 2x in FY2022 by increasing penetration in the existing markets & exploring new markets.

  • BBQ will continue to focus on cost optimisation, growing delivery channel, and further enhancing the core Barbeque brand with 20 new store openings in FY2022.

  • Out of 20 new stores, the company will open at least 50% to 60% of stores in metro cities and Tier 1 and Tier 2 cities.

Covid 19 impact: Barbeque Nation Research Report

  • Barbeque Nation had a difficult start to the year due to pandemic-related nationwide lockdowns, in fact, multiple lockdowns in multiple cities.

  • At the beginning of FY21, the business model was predominantly dine-in, and delivery sales were minimal, impacting cash flows and liquidity.

  • During the year, the company added delivery as a new line of business.

  • The company managed costs across levels through rent waivers, restricting vendor contracts.

  • Due to new outlet cost, it impacted on margins of the company.

  • The company expects margins at the store level should be 22% to 23%, and the backend cost drag should not be more than 5% to 6%.

  • The company expects an overall margin of at least 15% but not in covid times.

  • The corporate business segment still not recovered in Q4 due to work from home. As a result, the company expects some delay in recovery as compared to the family & friends’ segment.

CAPEX: Barbeque Nation Swot Analysis

  • The company raised Rs.330 Cr and paid off its debt of Rs.250 cr.

Other updates: Barbeque Nation Share Price History

  • The penetration in metro markets is still very low in places like NCR, Delhi, Mumbai, Bengaluru, between 15 to 17 stores.

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