Barbeque Nation Hospitality Limited has informed the Exchange about Investor Presentation
To
The Manager Listing Department BSE Limited P.J. Towers, Dalal Street, Mumbai – 400001
Date: February 7, 2023
The Manager Listing & Compliance Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra East, Mumbai – 400051
Scrip Code: 543283
Scrip Symbol: BARBEQUE
Dear Sir/Madam,
Subject: Earnings presentation on Financial Results of the Company for the third
quarter ended December 31, 2022
Ref.: Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015
the third quarter ended December 31, 2022 which will be circulated
Please find enclosed a copy of the Earnings Presentation on Financial Results of the Company to the for Investors/Analysts for the Earnings Conference Call scheduled today i.e. Tuesday, February 7, 2023 at 6:00 pm (IST).
This is for your information and records.
Thanking you.
Yours faithfully,
For Barbeque-Nation Hospitality Limited
Nagamani C Y Company Secretary and Compliance Officer M. No.: A27475
Encl.: As above
BARBEQUE-NATION HOSPITALITY LIMITED Registered & Corporate Office: “Saket Callipolis”, Unit No. 601 & 602, 6th Floor, Doddakannalli Village, Varthur Hobli, Sarjapur Road, Bengaluru-560035, Karnataka, India. T: +91 80 69134900, E-mail: corporate@barbequenation.com,CIN: L55101KA2006PLC073031 www.barbequenation.com
RECOVERY. RESILIENCE. RESURGENCE.
BARBEQUE NATION HOSPITALITY LTD.
Earnings Presentation
Q3 FY23
Key Performance Highlights
Revenue from Operations
Reported EBITDA
SSSG (%)
Delivery Revenue
New Restaurant Additions
Own Digital Assets Contribution (%)
₹ 3,282 mn
₹ 631 mn
(1.2)%
₹ 450 mn
10
27.6%
+14.5% y-o-y
(10.0)% y-o-y
Q3FY22: 42.7%
(3.3)% y-o-y
Q3FY22: 7
Q3FY22: 25.2%
EBITDA Margin: 19.2%
Revenue from Operations
Reported EBITDA
SSSG (%)
Delivery Revenue
New Restaurant Additions
Own Digital Assets Contribution (%)
₹ 9,535 mn
₹ 1,965 mn
39.2%
₹ 1,262 mn
31
27.0%
+56.4% y-o-y
79.3% y-o-y
9MFY22: 112%
(17.7)% y-o-y
9MFY22: 11
9MFY22: 25.3%
EBITDA Margin: 20.6%
3 2 Y F 3 Q
3 2 Y F M 9
2
Diversified food services company with strong scalable brands
Dine-in offering
Destination brand for CELEBRATIONS
Delivery offering
Toscano
Italian Cuisine- Dine-in & Delivery
VALUE- Fixed price ‘all you can eat’ offering a wide variety
SERVICE- Strong guest focus & prompt service
PRODUCT INNOVATION Barbeque-in-a-Box
A-LA-CARTE UBQ
ASPIRATION
EXPERIENCE
EXPERIENCE- Live grills enhancing guest experience & engagement
Delivery through BBQN App/ website and extension
kitchens creating more distribution points for delivery
Current presence across 3 metro cities provides huge headroom for growth
BBQN App
Dum Safar
Extension Kitchens
VALUE
3
Growing restaurant network
Added 10 new restaurants to the network in Q3
Expansion of Restaurant Network
Restaurant Composition
10
10
3
11
1
Added 31 new restaurants and closed 4 205 195 185 restaurants in 9M FY23
212
185
212 Restaurants
192 BBQN India
12 Extension kitchens
6 BBQN International
14 Toscano
Distribution Metros & Tier I Tier II & III Cities Total Network
H1 FY23 Q3 FY23
148 57 205
156 56 212
164
164
133
104
66
80
45
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
Q1
Q2
Q3
14 restaurants under construction
YTD FY23
4
New restaurants designed to enhance customer experience
Bangalore Bhartiya City
Mysore Nexus
Mumbai Andheri
Kochi
Lucknow
Bangalore Lulu
5
Barbeque Nation – Brand Promos “Life ke chote bade moments – CelebrateGrillSe”
Promos brings out precious little moments of life as a reason to celebrate with Barbeque Nation
Promos have garnered more than 6 million views
6
Flavours @ Barbeque Nation / Toscano
In-Store Festivals
Segment Promotions
Celebrations on Digital Platform
7
#BNCares: Sustainability initiative to remove single use plastic bottles
Guests were served complimentary packaged drinking
water in single use plastic bottles
These are being replaced with re-usable glass bottles
Same quality and guest experience is ensured by refilling water from 20 liters reusable water jars
Initiative currently implemented across 150+
restaurants
Reduction of plastic waste of ~100 tons annually
8
The initiative is appreciated by guests across India
Y-o-Y Revenue growth of 14.5%; Sequential growth of 5.7%
Consolidated Revenue from Operations (₹ million)
Y-o-Y Quarterly Trend
TTM Revenue Trend
1,953
2,331
1,948
2,867
3,282
8,359
8,606
11,631
12,045
10,734
Q3 FY19
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Q3 FY23 revenues grew 14.5% Y-o-Y driven by 18.0% growth in dine-in business Q3FY23 SSSG is (1.2)%; SSSG for 9M FY23 is 39.2%
9
Dine-in: Y-o-Y growth of 18.0%; Sequential growth of 4.4%
Y-o-Y Dine – in Sales (₹ million)
Q-o-Q Dine – in Sales (₹ million)
1,937
2,227
1,661
2,827
2,395
2,395
2,060
2,719
2,709
2,827
Q3 FY19
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Share of business (%)
Share of business (%)
99.2%
95.5%
85.3%
83.5%
86.1%
83.5%
82.1%
86.4%
87.2%
86.1%
Y-o-Y dine-in business growth driven by dine-in volume and price; sequential growth driven by volume Q3FY23 dine-in SSSG is 1.7%
10
Delivery: Y-o-Y degrowth of 3.3% ; Sequential growth of 14.7%
Y-o-Y Delivery Sales (₹ million)
Q-o-Q Delivery Sales (₹ million)
(3.3)%
466
450
283
Q3 FY21
Q3 FY22
Q3 FY23
14.5%
16.2%
13.7%
466
446
420
392
450
Q3 FY22
Q4 FY22 Share of business (%) 17.8%
16.2%
Q1 FY23
Q2 FY23
Q3 FY23
13.3%
12.6%
13.7%
88
5
Q3 FY19
Q3 FY20 Share of business (%) 3.8%
0.3%
Delivery business grew sequentially 14.7% entirely led by volume growth; Average order value (AOV) stable for last 3 quarters Dum Safar launched across 100+ outlets; M-o-M growth in average daily sales
11
Increased contribution from own digital assets
User !!!
Cumulative App Downloads (In Mn)
Own Digital Assets Contribution1 (%)
4.2
4.7
3.6
5.1
5.4
25.2%
24.1%
24.6%
28.7%
27.6%
Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Increase in share of own channels (digital & non-digital) in the dine-in business
Cumulative BBQ App downloads: 5.4mn+; 50% increase over Dec-22
4.6+ App Ratings
1) Own Digital Assets Contribution is calculated as revenue generated through Barbeque nation app and web bookings. Represents data for BBQ India only
12
Matured outlets delivering strong revenue and margin performance (1/2)
Q3 FY23 Metrics
Matured1
New Restaurants1
Restaurant (#)
Revenue from operations (₹ Mn)
Avg. Quarterly Revenue/Outlet (₹ Mn)
156
2,659
17.0
Restaurant Op. Margin(%)-without IND-AS(3)
19.2%
56
623
11.1
5.3%
Restaurant Op. Margin(%)-with IND-AS(3)
27.3%
16.2%
1) Restaurants with operations of more than 2 years are considered as “Matured” 2) Avg. Quarterly revenue/outlet is calculated on 209 restaurants i.e., average of opening and closing number of restaurants during the period 3) Restaurant Operating Margin represents margins of the restaurants and does not include other income
13
Total
212
3,282
15.7(2)
16.6%
25.2%
13
Matured outlets delivering strong revenue and margin performance (2/2)
9M FY23 Metrics
Matured1
New Restaurants1
Restaurant (#)
Revenue from operations (₹ Mn)
Avg. Quarterly Revenue/Outlet (₹ Mn)
155
7,994
17.2
Restaurant Op. Margin(%)-without IND-AS(3)
20.2%
Restaurant Op. Margin(%)-with IND-AS(3)
28.7%
57
1,541
9.0
4.0%
15.5%
1) Restaurants with operations of more than 2 years are considered as “Matured” 2) Avg. Quarterly revenue/outlet is calculated on 199 restaurants i.e., average of opening and closing number of restaurants during the period 3) Restaurant Operating Margin represents margins of the restaurants and does not include other income
14
Total
212
9,535
16.0(2)
17.6%
26.6%
14
Quarterly revenue and margin trend
Revenue from Operations (₹ Mn)
Gross Profit (₹ Mn) and Margin (%)
67.4%
65.6%
65.8%
66.7%
2,331
1,948
2,867
3,282
1,572
1,278
1,886
2,189
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
3 yr CAGR: 12.1%
3 yr CAGR: 11.7%
Reported EBITDA (₹ Mn) and Margin (%)
Adjusted EBITDA* (₹ Mn) and Margin (%)
23.4%
25.5%
24.5%
19.2%
13.9%
13.5%
15.8%
10.7%
546
497
702
631
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
3 yr CAGR: 5.0%
324
263
452
351
Q3 FY20
Q3 FY21
Q3 FY22
Q3 FY23
3 yr CAGR: 2.7%
*Adjusted EBITDA is EBITDA without IND AS 116 adjustments and excludes non cash ESOP provisions. All margins are calculated as % of Revenue from operations.
15
YTD revenue and margins trends
Revenue from Operations (₹ Mn)
Gross Profit (₹ Mn) and Margin (%)
65.9%
63.4%
64.6%
66.5%
6,560
2,807
6,095
9,535
4,321
1,781
3,936
6,343
9M FY20
9M FY21
9M FY22
9M FY23
9M FY20
9M FY21
9M FY22
9M FY23
3 yr CAGR: 13.3%
3 yr CAGR: 13.6%
Reported EBITDA (₹ Mn) and Margin (%)
Adjusted EBITDA* (₹ Mn) and Margin (%)
21.9%
12.9%
18.0%
20.6%
1,435
364
1,096
1,965
9M FY20
9M FY21
9M FY22
9M FY23
3 yr CAGR: 11.0%
11.7%
(12.4%)
6.0%
11.9%
769
364
1,138
(348)
9M FY20
9M FY21
9M FY22
9M FY23
3 yr CAGR: 14.0%
*Adjusted EBITDA is EBITDA without IND AS 116 adjustments and excludes non cash ESOP provisions. All margins are calculated as % of Revenue from operations.
16
Margin impacted by marginally negative SSSG and new stores
Adjusted EBITDA Margin bridge vs. previous year
1.9%
2.2%
0.3%
0.6%
15.8%
Impacted by marginally negative SSSG and negative operating leverage
Impacted by change in mix between mature and new restaurants
Impact of one time rental waivers in the previous year
Increase in corporate expenses vs previous year
Matured restaurants of Q3 FY23 contributed to 81% of revenue vs ~95% in Q3 FY22
10.7%
Q3 FY22
Matured restaurants
New restaurants
Other Income
Corp Expenses
Q3 FY23
*Adjusted EBITDA is EBITDA without IND AS 116 adjustments and excludes non cash ESOP provisions. All margins are calculated as % of Revenue from operations.
17
Consolidated P&L
₹ Millions Revenue from operations Other Income Total Revenue Cost of food and beverages consumed Employee related expenses Occupancy and other expenses EBITDA EBITDA % Finance costs Depreciation and amortisation Exceptional items Profit before tax Tax expense Profit/(loss) after tax Profit/(loss) after tax % Adjusted profitability* Adjusted EBITDA Adjusted EBITDA % Adjusted Profit/(loss) before tax Adjusted Profit/(loss) before tax %
Q3 FY23 3,282 12 3,293 1,093 688 881 631 19.2% 183 382 (22) 89 17 72 2.2%
351 10.7% 133 4.0%
Q3 FY22 2,867 45 2,912 981 557 672 702 24.5% 172 340 (2) 192 44 148 5.2%
452 15.8% 247 8.6%
Y-o-Y Gr% 14.5% (73.5)% 13.1% 11.4% 23.4% 31.3% (10.0)%
6.6% 12.3%
(53.7)% (61.1)% (51.5)%
(22.2)%
(46.3)%
9M FY23 9,535 58 9,593 3,193 2,007 2,429 1,965 20.6% 537 1,084 (55) 399 92 307 3.2%
1,138 11.9% 545 5.7%
9M FY22 6,095 204 6,299 2,159 1,356 1,688 1,096 18.0% 491 933 (5) (323) (66) (257) (4.2)%
364 6.0% (200) (3.3)%
Y-o-Y Gr% 56.4% (71.6)% 52.3% 47.8% 48.0% 43.9% 79.3%
9.5% 16.1%
213%
*Adjusted EBITDA and PBT is calculated without the impact of IND AS 116 and excludes non cash ESOP related provisions. All margins are calculated as % of Revenue from operations.
18
Key Investment themes
Investment Themes
Q3 FY23
9M FY23
Resilient food services brand: BBQN, UBQ and Toscano Strong growth in revenues, EBITDA and margins
Revenue growth: 14.5% EBITDA growth: (10.0)% EBITDA Margin: 19.2%
Revenue growth: 56.4% EBITDA growth: 79.3% EBITDA Margin: 20.6%
Dine-in | Delivery composition driving incremental growth Maintain share of delivery business at 15-20%
Dine-in I Delivery Mix: 86.1%/13.7%
Dine-in I Delivery Mix: 86.6%/13.2%
Robust SSSG with strong restaurant operating margins(ROM) SSSG of 30% in FY23
SSSG: (1.2)% ROM: 16.6%
SSSG: 39.2% ROM: 17.6%
Drive growth through restaurant expansion Plan to open 35-40 restaurants in FY23
New additions: 10 Total restaurants: 212
New additions: 31 Total restaurants: 212
BBQN own digital assets contribution (ODAC) used for reservations, feedback, loyalty and delivery
ODAC: 27.6%
ODAC: 27.0%
Track record of new business verticals: UBQ, Toscano, BBQ International
Strong Balance sheet: Net cash of ₹ 494 mn
Diversification with presence in 83 Indian cities
All margins are calculated as % of Revenue from operations.
19
Disclaimer
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Barbeque-Nation Hospitality Ltd (“Barbeque Nation” or the Company) future business developments and economic performance.
While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Barbeque Nation undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.
All the number are on consolidated basis and without adjustment for the minority interest of 24.84% in Red Apple Kitchen, unless otherwise mentioned. All margin calculation are on Revenue from operations, unless otherwise mentioned.
For further information, please contact:
Bijay Sharma Head of Investor Relations Barbeque-Nation Hospitality Ltd. Investor@barbequenation.com
20
BARBEQUE NATION HOSPITALITY LTD. HEAD OFFICE Saket Callipolis, Unit No 601 & 602,6th Floor, Doddakannalli Village, Varthur Hobli,Sarjapur Road, Bengaluru, Karnataka 560035 India. E: feedback@barbequenation.com W: www.barbequenation.com