United Foodbrands turns down the heat with Rs 225 million quarterly loss

MUMBAI: The grills are still sizzling, but the books are cooling fast at United Foodbrands limited formerly known as Barbeque-Nation Hospitality. The restaurant chain reported a consolidated net loss of Rs 225.02 million for the quarter ended September 2025, nearly doubling its loss from Rs 114.76 million in the same period last year.

Revenue from operations stood steady at Rs 3,047.57 million, almost unchanged from Rs 3,056.95 million a year ago, as dine-in recovery plateaued and costs stayed high. Including other income of Rs 80.81 million, total income reached Rs 3,128.38 million, a marginal dip from Rs 3,099.72 million last year.

While the company managed to serve up a healthy EBITDA of Rs 458.16 million, down from Rs 498.61 million a year ago, the bottom line was scorched by heavy operating and finance costs. Expenses rose to Rs 2,670.22 million during the quarter, led by food and beverage costs of Rs 1,028.74 million, employee expenses of Rs 761.31 million, and other overheads of Rs 880.17 million.

Depreciation and amortisation shot up to Rs 482.76 million, reflecting ongoing expansion and maintenance of its outlets, while finance costs climbed to Rs 206.95 million, up 10 per cent year on year. Consequently, the company posted a pre-tax loss of Rs 231.55 million, compared with Rs 99.57 million in the same quarter last year.

After accounting for a deferred tax credit of Rs 6.85 million, the net loss stood at Rs 225.02 million. Total comprehensive loss for the quarter came in at Rs 245.58 million, including foreign exchange translation losses of Rs 20.39 million.

For the half year ended September 2025, United Foodbrands’ revenue reached Rs 6,017.38 million, down slightly from Rs 6,113.84 million a year earlier. The half-year loss before tax widened sharply to Rs 401.42 million, from Rs 154.50 million in the same period of 2024.

The company’s balance sheet showed total assets of Rs 13,620.26 million as of September 2025, up from Rs 13,140.53 million at the end of March. Equity stood at Rs 3,408.60 million, while total liabilities rose to Rs 10,211.66 million, reflecting higher lease obligations of Rs 7,079.50 million combined across current and non-current portions.

On the cash flow front, the company generated Rs 876.67 million from operations during the half year, but investing and financing outflows totalling Rs 879.12 million kept net cash nearly flat. Cash and cash equivalents closed at Rs 166.88 million, compared to Rs 169.33 million in March.

Despite the red ink, United Foodbrands continued its expansion strategy, adding new outlets while acquiring a subsidiary during the half year. But the company, still digesting higher costs and slower footfalls, may need to spice up its recipe for profitability before it can serve shareholders a tastier return.

With its grill glowing and margins thinning, United Foodbrands’ challenge now is to keep the flame alive without getting burned.