Super Hi Reports Impressive Revenue Growth
Super Hi International Holding Ltd. (NASDAQ: HDL and HKEX: 9658), a prominent brand in the Chinese hot pot restaurant segment with its well-loved Haidilao restaurants, has revealed significant financial results for the second quarter of 2025. The company reported a revenue of US$198.9 million, marking an impressive year-on-year increase of 8.5% compared to US$183.3 million in Q2 2024.
Key Highlights from the Second Quarter of 2025
During this period, Super Hi made substantial progress in optimizing its restaurant network. The company's strategic expansion included the opening of 4 new Haidilao restaurants while discontinuing operations at 1 underperforming location. This brings the total number of operational Haidilao restaurants to 126, an increase from 123 at the end of Q1 2025.
Stable Guest Engagement
The average table turnover rate stood steady at 3.8 times per day, with the same-store turnover slightly higher at 3.9 times per day, remaining consistent with the previous year. The company welcomed over 7.7 million guest visits during this quarter, reflecting a 6.9% rise over the 7.2 million visits recorded in Q2 2024.
Same-Store Sales Update
Super Hi also reported same-store sales of US$170.2 million, demonstrating a 5.3% growth from US$161.7 million during the same period last year. However, income from operations experienced a notable decline, dropping 56.5% to US$3.7 million compared to US$8.5 million in Q2 2024. The operating margin fell to 1.9% from 4.6% in the prior year.
CEO's Insights on Financial Strategy
Ms. Yang Lijuan, CEO & Executive Director of Super Hi, commented on these results, stating, "Though our revenue has increased, the significant drop in operating income reflects our ongoing strategy to enhance value for customers and employees, which inevitably causes short-term fluctuations. We aim to continuously fine-tune our management precision as we navigate through market dynamics."
Investment in Growth Initiatives
This strategic approach also saw the company invest heavily in its 'Pomegranate Plan' aimed at promoting innovation and enhancing restaurant performance. Ms. Yang emphasized the importance of the 'Woodpecker Plan', specifically targeting underperforming restaurants to improve overall operational efficiency.
Financial Breakdown for Operational Insights
The revenue from Haidilao operations surged to US$189.1 million, a 7.3% increase from US$176.2 million in Q2 2024, primarily driven by expansion and enhanced brand engagement. Revenue from delivery services saw remarkable growth of 60.9%, reaching US$3.7 million amidst strategic marketing partnerships.
Furthermore, the segment focusing on hot pot condiment products yielded US$6.1 million, reflecting a solid growth of 27.1% from the same quarter last year, indicating a healthy demand in the international market. However, raw material costs increased to US$67.6 million, up 9.6% due to growth in food ingredient expenses.
Employee Investment for Future Stability
Staff costs rose to US$70.3 million, which is an increase of 12.1% reflecting the company's commitment to enhancing employee benefits and the overall workforce amid restaurant expansion. This has positively impacted staff loyalty and satisfaction, crucial to maintaining service quality across locations.
Profitability Outlook
Perhaps most telling was the dramatic shift in profitability; the reported profit for the period stood at US$16.4 million compared to a slight loss in the previous year. This recovery showcases resilience largely driven by minimized foreign exchange losses, contributing positively to financial health. Net profit per share hit US$0.03, a marked improvement from the previous year.
Company Overview
Founded in Sichuan in 1994, Haidilao has grown to become a global favorite, renowned for its exceptional dining experience characterized by attentive service and high-quality cuisine. As of June 30, 2025, Super Hi operates 126 restaurants across 14 countries, solidifying its status as the largest international Chinese cuisine brand.
Frequently Asked Questions
What financial highlights did Super Hi report for Q2 2025?
Super Hi reported a revenue of US$198.9 million, reflecting an 8.5% increase year-on-year.
How many restaurants does Super Hi currently operate?
As of June 30, 2025, Super Hi operates 126 Haidilao restaurants globally.
What impact did the staff cost increases have?
The rise in staff costs to US$70.3 million indicates a commitment to enhancing employee engagement and benefits.
What is the strategy regarding underperforming restaurants?
Super Hi is employing the 'Woodpecker Plan' to improve the operations of underperforming locations.
How did foreign exchange rates affect profitability?
A decreased net foreign exchange loss of US$22.8 million contributed positively to the overall profit outlook.
