The Rise of Super Hi International: From Losses to Profits
Singapore-based restaurant operator Super Hi International has reported a remarkable turnaround in its financial performance, posting a net profit of US$37.7 million for the third quarter ended Sept 30. This marks a significant improvement from a net loss of US$1.4 million in the same period last year.
Driving Factors Behind the Financial Success
- Revenue Growth: Super Hi attributed its positive results to an increase in revenue, fueled by ongoing business expansion and a surge in dining-out demand. The recovery of the tourism industry also played a vital role in boosting sales.
- Operational Efficiency: The company noted an improvement in operational efficiency, which contributed to the overall bottom line.
- Foreign Exchange Gains: A substantial increase in net foreign exchange gains of US$34.6 million further bolstered the company’s financial performance.
Key Financial Highlights
During the third quarter, Super Hi reported a 14.6% increase in revenue, amounting to US$198.6 million compared to US$173.3 million in the previous year. The group’s restaurant operations specifically saw a 14.5% rise in revenue, reaching US$190.9 million.
Noteworthy figures from the quarter include:
- Over 7.4 million customers served, marking a 4.2% year-on-year increase
- Average daily table turnover rate of 3.8 times
Expansion and Diversification
As of Sept 30, Super Hi operates 121 Haidilao outlets across 13 countries outside China, Hong Kong, Macau, and Taiwan, with 73 outlets in South-east Asia. The company has diversified its revenue streams through initiatives such as:
- Delivery Business: Revenue from the delivery business rose to US$2.6 million in Q3, up 8.3% from the previous year, driven by partnerships with local delivery platforms.
- Other Business Segment: This segment contributed US$5.1 million in revenue, with a notable increase of 21.4% year-on-year. The growth was attributed to the rising demand for hotpot condiment products and branded food items among local customers and retailers.
Future Growth Plans and Market Expansion
Looking ahead, Super Hi has outlined strategies to further enhance its operations and expand its presence in key markets. CEO June Yang emphasized the importance of optimizing the supply chain, product development, brand marketing, and digital operations to drive growth.
In a bold move, the company announced plans to open more outlets in the US by 2025, signaling its commitment to international expansion despite challenges faced during the pandemic.
Conclusion
Super Hi International’s impressive financial turnaround and strategic growth initiatives position the company as a key player in the global restaurant industry. With a focus on innovation and customer-centric offerings, Super Hi continues to pave the way for success in a competitive market landscape.
FAQs
What led to Super Hi International’s financial success in Q3?
Super Hi International attributed its positive financial results in the third quarter to revenue growth, operational efficiency improvements, and increased net foreign exchange gains. The company also benefited from a surge in dining-out demand and the recovery of the tourism industry.
What are Super Hi’s future expansion plans?
Super Hi International plans to expand its market presence by opening more outlets in the US by 2025. The company aims to optimize its supply chain, product development, and brand marketing strategies to drive growth and enhance customer experience.