Super Hi International Holding Ltd. (HDL) reported a 118.9% year-over-year increase in operating profit to $8.1 million for the second quarter of 2026, despite a net loss of $1.93 million after foreign exchange losses. Total revenue rose 10% to $219 million, driven by a 105% surge in delivery service revenue to $7.56 million and a 119.7% jump in other business revenue to $13.39 million.
The company’s Haidilao restaurant operations generated $198 million in revenue, up 4.6% from the prior-year period, while combined delivery and other business revenue accounted for 9.6% of total revenue, nearly doubling from about 5% a year earlier. Operating profit margin expanded to 3.7%, an increase of 1.8 percentage points from 1.9% in Q2 2025, though gross profit margin edged down 0.1 percentage points to 65.9%.
Operating expenses remained tightly controlled, with employee costs at $74.51 million and raw material expenses at $74 million. Rent and utility expenses declined as a percentage of revenue, while depreciation and amortization costs stood at $21 million. A sharp reversal in foreign exchange impacts weighed on net results, with a $4.34 million loss this quarter compared to a $16.33 million gain in the same period last year—a swing of more than $20 million.
Customer metrics showed resilience, with 8.1 million visits across 129 overseas Haidilao restaurants, up 5.2% year-over-year. Same-store sales dipped 0.8% overall, though Southeast Asia and East Asia segments grew 2.5% and 0.9%, respectively. Average spending per customer increased to $24.3, while table turnover rates improved to 3.9 turns per day across the chain.
Expansion continued with three net new store openings in the first half of 2026, including locations in South Korea and Vietnam. Management reaffirmed its full-year 2026 target for double-digit new store openings, with projects underway in North America and the U.K. The company emphasized localized pricing strategies, citing regional competition and consumer preferences as key considerations.
Cash reserves totaled $266 million as of June 30, and operating cash flow rose 6.2% to $28 million. Shares were up 1.08% in after-hours trading to $14.10 following the results, within a 52-week range of $11.46 to $20.35.
