New Delhi, Feb 26 (IANS) Quick-service restaurant (QSR) chain Wow! Momo has reported a net loss of Rs 114 crore in FY24, as the company struggled with the rising expenses.
The company’s total expenditure grew by 11.9 per cent to Rs 593 crore in FY24, driven by costs related to raw materials, rent, advertising, and commissions.
The cost of material procurement alone accounted for Rs 158 crore — increasing by 15.3 per cent compared to the previous year.
However, employee benefit expenses declined by 27.7 per cent to Rs 120 crore. Other costs, including rent, advertising, power, and commissions, contributed to a total expenditure of Rs 593 crore — an 11.9 per cent increase from the previous fiscal.
The company’s return on capital employed (ROCE) stood at (-) 8.33 per cent, while its EBITDA margin was 7.93 per cent.
The expense-to-revenue ratio remained high at Rs 1.26, which reflects the ongoing financial pressure on the business.
While the company saw a 14 per cent rise in operating revenue, the growth was significantly lower than the 88 per cent surge recorded in FY23.
According to its consolidated financial statements, Wow! Momo’s revenue from operations increased to Rs 470 crore in FY24 from Rs 413 crore in the previous year.
The majority of this revenue, Rs 456 crore, came from the sale of momos, food, and beverages, while the rest was generated from frozen momo sales.
The company also earned Rs 9 crore as interest on deposits, bringing its total income to Rs 479 crore.
According to its financials, the company held total current assets of Rs 250 crore by the end of FY24, including Rs 175 crore in cash and bank balances.
The company, backed by Tiger Global and Khazanah Nasional Berhad, has raised over Rs 600 crore to date.
In its latest funding round, it secured $42 million (Rs 350 crore) in Series D funding. As per the media reports, the company is also planning to go public by 2027.
–IANS
pk/na/vd
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
