RESTAURANT BRANDS ASIA 2022-23 Annual Report Analysis

Tue, 18 Jul

RESTAURANT BRANDS ASIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RESTAURANT BRANDS ASIA Income Statement Analysis

• Operating income during the year rose 37.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY23 as against 4.8% in FY22.
• Depreciation charges increased by 21.6% and finance costs increased by 10.3% YoY, respectively.
• Other income grew by 60.3% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 15.8% in FY22 to 11.8% in FY23.

RESTAURANT BRANDS ASIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,903	20,543	37.8%
Other income	Rs m	224	360	60.3%
Total Revenues	Rs m	15,127	20,902	38.2%
Gross profit	Rs m	714	1,115	56.2%
Depreciation	Rs m	2,336	2,840	21.6%
Interest	Rs m	954	1,052	10.3%
Profit before tax	Rs m	-2,352	-2,418	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-2,352	-2,418	NA
Gross profit margin	%	4.8	5.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	-15.8	-11.8

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RESTAURANT BRANDS ASIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 18.6%.
• Long-term debt down at Rs 730 million as compared to Rs 877 million during FY22, a fall of 16.7%.
• Current assets fell 47% and stood at Rs 4 billion, while fixed assets rose 29% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 5%.

RESTAURANT BRANDS ASIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,280	8,092	-21.3
Current Liabilities	Rs m	4,980	5,906	18.6
Long-term Debt	Rs m	877	730	-16.7
Total Liabilities	Rs m	23,782	24,932	4.8
Current assets	Rs m	7,423	3,909	-47.3
Fixed Assets	Rs m	16,359	21,023	28.5
Total Assets	Rs m	23,782	24,932	4.8

RESTAURANT BRANDS ASIA Cash Flow Statement Analysis

• RESTAURANT BRANDS ASIA's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 60.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 129 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -304 million from the Rs 989 million net cash flows seen during FY22.

RESTAURANT BRANDS ASIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	775	1,243	60.3%
Cash Flow from Investing Activities	Rs m	-10,860	129	-
Cash Flow from Financing Activities	Rs m	11,123	-1,702	-
Net Cash Flow	Rs m	989	-304	-

Current Valuations for RESTAURANT BRANDS ASIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.9, an decline from the EPS of Rs -4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.4, stands at -22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 129.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	30.2	41.5
TTM Earnings per share	Rs	-4.8	-4.9
Diluted earnings per share	Rs	-4.8	-4.9
Price to Cash Flow	x	-3,172.3	129.6
TTM P/E ratio	x	-21.2	-22.4
Price / Book Value ratio	x	6.8	6.8
Market Cap	Rs m	70,254	54,762
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RESTAURANT BRANDS ASIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY23, from 1.5x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at -1.3x during FY23, from -1.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -29.9% during FY23, from -22.9% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -15.5% during FY23, from -12.5% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -5.5% during FY23, from -5.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.5	0.7
Debtors’ Days	Days	3	3
Interest coverage	x	-1.5	-1.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-5.9	-5.5
Return on equity	%	-22.9	-29.9
Return on capital employed	%	-12.5	-15.5

To see how RESTAURANT BRANDS ASIA has performed over the last 5 years, please visit here.

RESTAURANT BRANDS ASIA Share Price Performance

Over the last one year, RESTAURANT BRANDS ASIA share price has moved down from Rs 114.8 to Rs 109.4, registering a loss of Rs 5.4 or around 4.7%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

(To know more, check out historical annual results for RESTAURANT BRANDS ASIA and quarterly results for RESTAURANT BRANDS ASIA)