HDL — SUPER HI INTERNATIONAL HOLDING Ltd. American Depositary Shares

Summary of HDL (Q4 2025 Earnings Call)

1. Key Financial Results and Metrics:

• Q4 2025 Revenue: USD 230 million, up 10.2% year-over-year and 7.5% sequentially.
• Full Year 2025 Revenue: USD 841 million, an 8% increase from 2024.
• Operating Revenue from Haidilao Restaurants: USD 790 million (94% of total revenue), up 5.7% year-over-year.
• Takeout Revenue: USD 19 million, a significant increase of 68.1% year-on-year.
• Operating Profit: USD 37.4 million for the full year, with an operating profit margin of 4.4%, down from 2024.
• Net Profit: USD 36.3 million for the full year, showing improvement due to favorable currency exchange impacts.
• Table Turnover Rate: 4 turns per day in Q4, a slight increase from the previous year.

2. Strategic Updates and Business Highlights:

• The company focused on enhancing employee and customer benefits, which contributed to improved customer traffic and operational recovery.
• Continued investment in product optimization and service experience led to increased customer satisfaction.
• The "Pomegranate Plan" is showing results with significant revenue contributions from new brand initiatives and product offerings.
• Expansion efforts included opening 13 new stores in 2025 while closing 9 underperforming locations.
• The company is prioritizing digitalization and AI technology to improve operational efficiency and customer engagement.

3. Forward Guidance and Outlook:

• The company aims to enhance customer experience, expand its restaurant network, and improve operational efficiency in 2026.
• There is a cautious approach to store openings, with a focus on optimizing existing locations and ensuring profitability.
• Management indicated that while investments in customer and employee benefits will continue, they will be more targeted to improve the input/output ratio.

4. Bad News, Challenges, or Points of Concern:

• Operating profit margins decreased due to increased costs associated with employee benefits and raw materials, particularly in the first half of 2025.
• The company faces potential geopolitical risks that could impact operations, particularly in the Middle East and Europe.
• Some regions, like Southeast Asia, are still experiencing underperformance in table turnover rates, necessitating further operational improvements.
• There were concerns about the sustainability of customer traffic growth and the balance between profit concessions and maintaining profit margins.

5. Notable Q&A Insights:

• Management emphasized a bottom-up approach for store openings, allowing local managers to make decisions based on regional conditions.
• Brand equity is assessed through natural customer growth, table turnover rates, and local customer engagement, with strategies in place to strengthen brand presence in weaker markets.
• The company is cautious about pricing strategies, focusing on perceived value rather than outright price reductions.
• Management acknowledged the need to continuously monitor and adjust underperforming stores based on specific operational metrics and market conditions.

Overall, HDL demonstrated solid revenue growth and operational improvements in Q4 2025, while also addressing challenges related to costs and market conditions. The strategic focus remains on enhancing customer experience and optimizing operations for sustainable growth.