Restaurant Brands Asia Reports Mixed Performance in Q1 FY25 Financial Results

Restaurant Brands Asia, a midcap company in the lifestyle industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financial report, Restaurant Brands Asia has seen a negative performance in the quarter, with a score of -7. However, this is an improvement from the previous quarter’s score of -16.

One of the positive aspects of the company’s performance is its net sales, which were at their highest in the last five quarters at Rs 646.69 crore. The near-term sales trend is also positive, indicating potential growth for the company.

On the other hand, the company’s interest expenses have increased by 33.99% in the last half-year period, indicating a rise in borrowings. The debt-equity ratio has also been steadily increasing over the past five half-year periods, reaching its highest at 2.28 times. This suggests that the company may be relying more on borrowing to fund its operations, which could lead to a strained liquidity situation.

Another concerning factor is the company’s debtors turnover ratio, which is at its lowest in the last five half-year periods. This means that the company’s pace of settling its debtors has slowed down.

However, the company’s non-operating income has seen a significant increase in the quarter, reaching its highest at Rs 13.74 crore in the last five quarters. It is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, the financial results for the quarter ending March 2024 show a mixed performance for Restaurant Brands Asia. Investors should carefully consider these factors before making any investment decisions.