Annual Results Show Strong Net Profit Driven by FX Gains, Core Operational Profit Declines 29.8%

summarizeSummary

SUPER HI INTERNATIONAL HOLDING LTD. reported a significant 69.6% increase in net profit for 2025, reaching $36.3 million. However, this growth was primarily driven by a substantial $33.8 million swing from net foreign exchange losses in 2024 to net foreign exchange gains in 2025. Critically, the company's core operational profit (income from operation) decreased by 29.8% to $37.4 million, and restaurant-level operating margins also declined. This indicates underlying operational challenges despite strong top-line revenue growth of 8.0%. The company is prioritizing reinvestment in its restaurant network and the 'Pomegranate Plan' (secondary brands), opting not to recommend a final dividend. Investors should focus on the deterioration in operational profitability, which is masked by non-operating foreign exchange benefits.

check_boxKey Events

• Net Profit Surges Due to FX Gains

  Net profit for the year ended December 31, 2025, increased by 69.6% to $36.3 million, primarily driven by a $33.8 million positive swing in net foreign exchange gains compared to losses in the prior year.

• Operational Profit Declines Significantly

  Income from operation (core operational profit) decreased by 29.8% to $37.4 million in 2025, and the income from operation margin fell from 6.8% to 4.4%.

• Revenue Growth and Restaurant Expansion

  Revenue increased by 8.0% to $840.8 million. The company expanded its restaurant network, opening 13 new Haidilao restaurants and closing 9, resulting in a net gain of 4 locations to a total of 126.

• Operational Margins Contract

  Restaurant-level operating margin decreased by 1.4 percentage points to 8.7%, attributed to continued investments in customer and employee benefit-sharing initiatives, and increased operating expenses from business expansion, including the 'Pomegranate Plan'.

auto_awesomeAnalysis

SUPER HI INTERNATIONAL HOLDING LTD. reported a significant 69.6% increase in net profit for 2025, reaching $36.3 million. However, this growth was primarily driven by a substantial $33.8 million swing from net foreign exchange losses in 2024 to net foreign exchange gains in 2025. Critically, the company's core operational profit (income from operation) decreased by 29.8% to $37.4 million, and restaurant-level operating margins also declined. This indicates underlying operational challenges despite strong top-line revenue growth of 8.0%. The company is prioritizing reinvestment in its restaurant network and the 'Pomegranate Plan' (secondary brands), opting not to recommend a final dividend. Investors should focus on the deterioration in operational profitability, which is masked by non-operating foreign exchange benefits.