SINGAPORE - Super Hi International, the operator behind Haidilao's global franchise, reported a surprising net loss of US$11.6 million (S$15.5 million) for the fourth quarter ending December 31, 2024. This stands in stark contrast to a net profit of US$23.3 million during the same quarter last year.

This setback comes even as Super Hi experienced a revenue surge, with a 10.4% year-on-year increase, bringing their earnings to US$208.8 million. Operating income also saw a significant rise of 44.6%, reaching US$17.5 million. The company attributed its financial woes primarily to a massive US$40.4 million net foreign exchange loss due to the depreciation of local currencies against the US dollar.

Despite these challenges, the Singapore-based restaurant operator, which is dual-listed on both the Hong Kong Stock Exchange and Nasdaq, remains optimistic about its growth trajectory. The company has been actively expanding its business and improving operational efficiencies, which contributed to the higher revenue figures.

In terms of earnings per share, the company reported a loss of two US cents in this latest quarter, a drastic change from a profit of four US cents in the previous year. Super Hi's financial performance was even more disheartening considering they had posted a profit of US$37.7 million in the third quarter of 2024, rebounding from a net loss of US$1.4 million in Q3 2023.

For the entirety of 2024, Super Hi’s total profit decreased by 15.4% year-on-year to US$21.4 million, significantly impacted by heightened net foreign exchange losses. However, the company's revenue did climb by 13.4% to US$778.3 million, alongside a 23.7% uptick in operating income, which amounted to US$53.3 million. This improvement was largely driven by economies of scale leading to reduced operational expenses and enhanced gross profit margins due to supply chain optimization.

Super Hi's chief executive Yang Lijuan expressed a commitment to further expand its Haidilao restaurant network while optimizing store layouts. The company also plans to "intensify support" for diversifying its business offerings and attracting a broader customer base in the coming year.

As of December 31, 2024, Super Hi operated 122 Haidilao outlets outside of China, with recent activity including the opening of two new locations and the closure of one. The chain welcomed 30 million patrons to its restaurants throughout 2024. Meanwhile, in China, the Haidilao group boasts a staggering 1,300 locations, contributing substantially to its overall brand strength.

In the face of fluctuating foreign exchange rates, Super Hi's resilience will undoubtedly be put to the test as they continue to navigate both local and international markets. Keep an eye on how this storied chain plans to rebound; the future of Haidilao may just depend on it!