HDL — SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares

Summary of HDL Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: USD 230 million for Q4 2025, up 10.2% year-over-year; full-year revenue reached USD 841 million, an 8% increase.
• Operating Revenue from Haidilao Restaurants: USD 211.9 million in Q4, a 6% increase; full-year operating revenue was USD 790 million, up 5.7%.
• Takeout Revenue: USD 6.8 million in Q4, a significant increase of 94.3% year-over-year; full-year takeout revenue was USD 19 million, up 68.1%.
• Other Business Revenue: USD 11.3 million in Q4, up 109.3% year-over-year; full-year other business revenue was USD 31.8 million, an increase of 61.4%.
• Table Turnover Rate: 4 turns per day in Q4, up 0.1 from the previous year; full-year average was 3.9 turns.
• Net Profit: USD 4.47 million in Q4; full-year net profit was USD 36.3 million, a substantial increase from 2024.

2. Strategic Updates and Business Highlights

• Employee and Customer Focus: The company emphasized benefits for both employees and customers, contributing to improved customer traffic and table turnover.
• Store Expansion: Opened 13 new stores in 2025 across 9 countries, while closing 9 underperforming locations. The total number of overseas stores is now 126.
• Pomegranate Plan: Continued development of second brand operations, with some achieving profitability. The plan aims to optimize existing stores and explore new formats.
• Digitalization and Supply Chain Improvements: Enhanced operational efficiency through AI and improved supply chain management, which helped mitigate gross profit pressures.

3. Forward Guidance and Outlook

• The company aims to continue its focus on enhancing customer experience and operational efficiency.
• Plans to maintain a prudent approach to store openings, with a focus on optimizing existing locations and improving profitability.
• The expense ratio is expected to improve in 2026, with a focus on precise investments in customer and employee benefits without sacrificing quality.

4. Bad News, Challenges, or Points of Concern

• Operating Profit Margin: Decreased to 4.4% for the full year, with a low of 1.9% in Q2 before recovering to 5.7% in Q4, indicating volatility in profitability.
• Raw Material Costs: Increased pressure from rising raw material costs, particularly due to fresh product introduction and global supply chain challenges.
• Geopolitical Risks: Concerns regarding geopolitical tensions affecting operations in certain regions, particularly the Middle East, which may impact future performance.
• Store Performance Variability: Some stores, particularly in Southeast Asia, are underperforming, prompting a need for operational improvements and potential closures.

5. Notable Q&A Insights

• Store Opening Plans: Management indicated a cautious approach to new store openings, with decisions based on local market conditions and performance.
• Brand Equity Assessment: The strength of the Haidilao brand is evaluated through customer loyalty, turnover rates, and local customer engagement.
• Profit Margin Strategy: Management emphasized that profit concessions are part of a long-term strategy to enhance customer loyalty, with a focus on maintaining a mid- to high-end positioning.
• Regional Performance: East Asia is currently the strongest region in terms of store performance, while North America and Southeast Asia have mixed results, with ongoing adjustments planned for underperforming stores.

This summary encapsulates the key financial metrics, strategic initiatives, future outlook, challenges, and insights from the Q&A session, providing a comprehensive overview of Super Hi International's performance and strategic direction.