Westlife Development Q4 Review - Second Covid Wave Dampens Near-Term Outlook: Motilal Oswal
A cheeseburger, large fries, and soft drink are displayed on a tray at a McDonald’s fast-food restaurant franchise. (Photographer Adam Berry/Bloomberg)

Westlife Development Q4 Review - Second Covid Wave Dampens Near-Term Outlook: Motilal Oswal

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Motilal Oswal Report

Westlife Development Ltd. delivered in-line same store sales growth, but lower-than expected sales growth, with just one new store addition in Q4 FY21 and only five in FY21.

Furthermore, the dine-in channel (45% of sales in Q4 FY21) was still below normal levels.

However, strong performance from the convenience channel is a positive.

Gross margin expansion through volume recovery, channel optimization, and supply chain initiatives is encouraging.

The recovery in McCafe would further support the gross margin.

Ebitda margins were below expectations, with a one-time employee bonus and salary reversals putting pressure.

Nevertheless, the company’s efforts on fixed cost reduction should aid margins going forward.

Click on the attachment to read the full report:

Motilal Oswal Westlife Q4Fy21 Result Update.pdf

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