Super Hi International Reports Q3 Profit

In an impressive turnaround, Super Hi International, the operator of the popular Haidilao restaurants, reported a net profit of US$37.7 million (S$50.7 million) for Q3, ending September 30, reversing a net loss of US$1.4 million during the same period last year.

Revenue Growth and Operational Efficiency

The Singapore-based company attributed its newfound success to a significant increase in revenue, which rose by 14.6% to US$198.6 million from US$173.3 million a year earlier. This surge was largely driven by ongoing business expansion and a marked increase in dining-out demand, a trend fueled by a resurgence in tourism as global travel begins to stabilize post-pandemic.

Foreign Currency Fluctuation Gains

Further enhancing their profitability, Super Hi reported improved operational efficiency alongside a noteworthy US$34.6 million gain from foreign currency fluctuations. The restaurant operations alone saw revenue climb by 14.5%, reaching US$190.9 million, up from US$166.7 million previously as over 7.4 million customers dined in their outlets - a 4.2% increase year-on-year.

Expansion and Market Presence

Additionally, the restaurant chain achieved an average daily table turnover rate of 3.8 times during Q3. As of September 30, Super Hi operates a robust network of 121 Haidilao locations across 13 countries outside of China, Hong Kong, Macau, and Taiwan, including a hefty 73 outlets stationed strategically in Southeast Asia.

Growth in Delivery Services

In the realm of delivery services, revenue increased by 8.3%, reaching US$2.6 million, largely credited to enhanced partnerships with local delivery platforms. Meanwhile, the introduction of new product lines contributed an additional US$5.1 million—a staggering 21.4% increase—highlighting the growing popularity of Haidilao’s hotpot condiments and sub-branded food products among local consumers and retailers.

CEO's Vision for the Future

CEO Ms. June Yang emphasized the company’s commitment to further optimizing its supply chain, product development, brand marketing, and digital initiatives to enhance store operations continuously. Exciting plans for expansion are already underway, with Super Hi aiming to open more outlets in the U.S. as early as 2025.

Challenges in Domestic Expansion

This ambitious growth comes on the heels of a slowdown in domestic expansion by Haidilao International in China, which faced unprecedented challenges and losses during the peak of the COVID-19 pandemic.

Intriguing Developments Beyond Restaurants

In a separate yet intriguing development, on November 22, reports surfaced from The Business Times indicating that family members of Haidilao's co-founders are in negotiations to acquire the 21 Collyer Quay office building in Raffles Place for a staggering $688 million, highlighting the expanding influence of Haidilao’s founders beyond the restaurant space.

Conclusion and Future Outlook

In summary, Super Hi International appears to be on a winning trajectory, leveraging its operational strengths and seizing market opportunities as the culinary landscape continues to evolve in the wake of the pandemic. Will this resilience set the stage for further growth? Only time will tell!