Super Hi International, the listed overseas arm of the hot pot chain Haidilao, has released its first quarterly report following a leadership change. In the first quarter, the company achieved revenue of $226 million, a year-on-year increase of 14.2%. Operating profit reached $14 million, up 70.7% year-on-year, with the operating profit margin recovering to 6.2%, an improvement of 2.1 percentage points from the same period in 2025. However, the improvement in operations did not fully translate to net profit. Profit for the period was $4.1 million, down approximately 65.9% from $11.9 million in the same period last year, primarily due to a net foreign exchange loss increase of $11.7 million year-on-year, mainly impacted by currency fluctuations, particularly the depreciation of local currencies against the US dollar.
Nevertheless, the profit pressure from the previous "volume for price" strategy appears to be undergoing a phased change. In 2025, facing customer traffic pressures in overseas dining markets, Super Hi International adopted a more proactive pricing strategy to maintain table turnover rates and customer visits. Concurrently, the restaurant-level operating profit margin declined, as proactive price concessions compressed profit margins. In the first three quarters of 2025, average customer spending per person was $24.2, $24.3, and $24.6, respectively, rebounding to $25.4 in the fourth quarter. This trend continued into the first quarter of 2026, with the average customer spending per person at Super Hi International restaurants reaching $25.3, an increase of $1.1 compared to the same period last year.
Volume also maintained growth. In the first quarter, the company's overall average table turnover rate reached 4.0 times per day, higher than 3.9 times per day in the same period last year. Same-store sales were $184 million, a year-on-year increase of 4%. However, strictly speaking, the "volume for price" strategy has not completely ended. Of the $1.1 year-on-year increase in average customer spending, approximately $0.8 was attributable to exchange rate fluctuations. After excluding this factor, endogenous price increases contributed about $0.3. In other words, Super Hi International has not significantly shifted to a strong price hike strategy but is more cautiously adjusting the extent of previous price concessions.
Management reiterated this stance in the earnings call: the company will continue to advance work related to "quality-to-price ratio," including adjusting menu structures and product combinations, conducting rationality checks on portion sizes and prices, and making it easier for customers to perceive value. This approach aligns better with the current changes in the overseas consumption environment. Management noted that the overseas consumer market has not significantly worsened this year, but customers have become more rational, with varying performances across different markets: North American customers are more focused on value for money; overall demand in Southeast Asia remains vibrant; customers in Japan and South Korea are more sensitive to efficiency and social media influence; while markets such as Australia, the UK, and the Middle East each have their own consumption habits and pressure points.
Regionally, Southeast Asia remains Super Hi International's largest and most stable market. In the first quarter, the average table turnover rate in Southeast Asia increased from 3.7 times per day in the same period last year to 3.8 times per day. Same-store sales grew by approximately 6.4% year-on-year. The East Asian market performed even stronger, with an average table turnover rate of 5.1 times per day, higher than 5.0 times per day in the same period last year and significantly above the company's overall level. North America and other markets still face pressures. The average table turnover rate in North America decreased from 4.0 times per day in the same period last year to 3.6 times per day, with average daily revenue per restaurant dropping from $22,200 to $21,000. Similarly, the average table turnover rate in other markets declined from 4.0 times per day to 3.6 times per day. Given the higher labor, rent, and operational costs in markets such as North America, Australia, the UK, and the UAE, fluctuations in table turnover rates have a more sensitive impact on profit margins.
The cost side also showed positive signals. In the first quarter, the proportion of raw material and consumable costs to revenue slightly decreased from 34% in the same period last year to 33.9%, while the proportion of employee costs dropped from 35.3% to 34%. The decline in these two core cost ratios was a significant factor in the recovery of the operating profit margin from 4.1% to 6.2%. For the hot pot business model, table turnover rates are directly linked to sales per square foot, labor efficiency, ingredient turnover, and the dilution of fixed costs. The operating leverage from revenue growth is also helping the company dilute relatively rigid costs such as employee and rent expenses.
However, it is certain that Super Hi International will not significantly accelerate expansion in the short term. In early April this year, the company clarified its annual plan, stating it would maintain a "very cautious" approach to store expansion. In the first quarter, Super Hi International opened only one new Haidilao restaurant in Southeast Asia, bringing the total number of global stores to 127.
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