Haidilao’s annual revenue reached 26.556 billion yuan, and 308 new stores were opened, with a unit price of 105.2 yuan per person.
On the evening of March 25, Haidilao (06862.HK) announced its annual financial report for the year ended December 31, 2019.
According to the financial report, the total revenue of Haidilao reached 26.556 billion yuan (RMB, the same below) in 2019, an increase of 56.2% year-on-year in 2018, which was lower than the consensus estimate of Bloomberg (27.24 billion yuan). Net profit attributable to owners of the company reached 2.345 billion yuan, up 42.44% year-on-year.
Restaurant operating income is the main source of Haidilao. For the full year of 2019, Haidilao Restaurant’s operating income was 25.588 billion yuan, compared with 16.491 billion yuan in the same period last year, an increase of 55.2% year-on-year. This is mainly due to the direct income generated by the addition of 308 new stores in 2019.
Takeaway business revenue will account for 1.7% of total revenue in 2019, and the year-on-year growth rate will be slow. At the same time, revenue from the takeaway business increased by 38.6% year-on-year to 449 million yuan. The increase in the number of takeaway orders is the main reason for the increase in revenue.
In terms of operations, Haidilao will open 308 new stores and close 6 in 2019, bringing the total number of stores to 768. Same-store sales reached 12.065 billion yuan, and the same-store sales rate increased by 1.6%. (Same-store sales: Revenue from restaurants operating more than 300 days during this period)
In terms of operating data, per capita consumption of Haidilao’s customers rose from 101.1 yuan last year to 105.2 yuan, and the unit price of customers has increased significantly. The average consumption of first- and second-tier cities increased significantly. Per capita consumption in first-tier cities exceeded 110 yuan, and per capita consumption in second-tier cities was close to the 100-yuan mark. Per capita consumption in mainland China exceeded 100 yuan for the first time.
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But at the same time, the turnover rate of Haidilao has declined, from 5.0 times / day in 2018 to 4.8 times / day. Among them, the turnover rate of first and second-tier cities has decreased by 0.4 percentage points, but the same store turnover The rate has remained stable except for third-tier cities and below.
Since the outbreak, Haidilao’s catering track has been most affected. On January 26, Haidilao announced that it would close all stores in the mainland, and only resume meals after 46 days. During the suspension period, despite the self-rescue actions such as the promotion of semi-finished dishes, live hotpot shabu-shabu liveliness, and early restoration of delivery stores, the contribution to Haidilao’s overall revenue was obviously a sloppy salary.
With regard to the impact of the epidemic, Haidilao said that the company has reopened most of its closed stores since March 12. Although affected by the new coronavirus, the operating performance of these stores is gradually improving. In view of the dynamic nature of the epidemic situation, the directors believe that the financial impact cannot be reasonably estimated as of the date of this announcement, but it is expected that the Group will continue to operate with the adoption of improvement measures and existing funding sources.
Tianfeng Securities believes that after the epidemic, high-quality services and brand advantages can help Haidilao prioritize the rebound of passenger flow and achieve rapid business recovery, which is expected to further increase market share. Affected by the closure, Bloomberg unanimously expects that Haidilao’s estimated revenue in the first half of 2020 will be 9.42 billion yuan, a year-on-year decrease of 19.5%.