Synopsis
Wow! Momo has reported a staggering net loss of Rs 114 crore in FY24, attributed mainly to rising operating costs. Despite a growth in revenue, the company faces significant financial challenges.Key Takeaways
- Wow! Momo reported a net loss of Rs 114 crore in FY24.
- Operating expenses rose by 11.9% to Rs 593 crore.
- Material procurement costs increased by 15.3% to Rs 158 crore.
- Employee benefit expenses dropped by 27.7% to Rs 120 crore.
- Plans to go public by 2027 following Series D funding.
New Delhi, Feb 26 (NationPress) The quick-service restaurant (QSR) chain Wow! Momo has disclosed a net loss of Rs 114 crore in FY24, primarily due to escalating costs.
The company’s overall expenses surged by 11.9 per cent to Rs 593 crore in FY24, influenced by expenditures on raw materials, rent, advertising, and commissions.
The procurement costs for materials alone reached Rs 158 crore, marking an increase of 15.3 per cent from the previous year.
Conversely, expenses for employee benefits fell by 27.7 per cent to Rs 120 crore. Other costs, which include rent, advertising, power, and commissions, pushed total expenses to Rs 593 crore, reflecting an 11.9 per cent rise compared to the last fiscal year.
The company’s return on capital employed (ROCE) was recorded at (-) 8.33 per cent, while its EBITDA margin stood at 7.93 per cent.
The expense-to-revenue ratio remained elevated at Rs 1.26, indicating persistent financial strain on the operation.
Despite witnessing a 14 per cent increase in operating revenue, this growth was considerably lower than the 88 per cent jump observed in FY23.
According to the consolidated financial statements, Wow! Momo’s operational revenue climbed to Rs 470 crore in FY24, up from Rs 413 crore the previous year.
A significant portion of this revenue, totaling Rs 456 crore, originated from the sale of momos, food, and beverages, with the remaining revenue coming from frozen momo sales.
Additionally, the company garnered Rs 9 crore in interest from deposits, leading to a total income of Rs 479 crore.
The financials reveal that the company had total current assets amounting to Rs 250 crore by the conclusion of FY24, which included Rs 175 crore in cash and bank balances.
Supported by Tiger Global and Khazanah Nasional Berhad, the company has raised over Rs 600 crore to date.
In the latest funding round, it secured $42 million (approximately Rs 350 crore) in Series D funding. Media reports indicate that the company is also planning to go public by 2027.
