United Foodbrands Reports Rs 225.02 Crore Loss in Q2, Revenue Rises to Rs 3,047.57 Crore

United Foodbrands Limited (formerly Barbeque-Nation Hospitality Limited) reported a net loss of Rs 225.02 crore for the quarter ended September 30, compared to a loss of Rs 72.32 crore in the same period last year. Total income increased to Rs 3,047.57 crore from Rs 3,099.72 crore year-over-year.

Financial Performance

For the six-month period, the company's loss widened to Rs 691.77 crore from Rs 414.76 crore in the previous year, while revenue declined to Rs 6,117.52 crore from Rs 6,183.35 crore.

Geographic Performance

The company operates restaurants across India and overseas markets:

Region	Revenue (Rs Crore)
India	2,771.55
Overseas	276.02

Corporate Updates

United Foodbrands completed the acquisition of 51% stake in Willow Gourmet Private Limited in June, making it a subsidiary.
The company received approval for a scheme of amalgamation between two of its subsidiaries, Red Apple Kitchen Consultancy and Blue Planet Foods, subject to regulatory approvals.

Conclusion

Despite the increase in quarterly revenue, United Foodbrands faces challenges with widening losses. The recent acquisition and corporate restructuring may be part of the company's strategy to address its financial performance in the restaurant industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.49%	-0.22%	-15.82%	-42.17%	-63.08%	-67.01%

United Foodbrands Limited (UFBL), formerly known as Barbeque-Nation Hospitality Limited, has received an update on its credit ratings from ICRA Limited. The credit rating agency has reaffirmed the company's ratings while revising the outlook to negative from stable, signaling potential challenges ahead for the food and hospitality firm.

Credit Rating Details

ICRA has provided the following ratings for UFBL's credit facilities:

Instrument	Previous Amount (Rs. Crore)	Current Amount (Rs. Crore)	Rating Action
Long-term Fund-based Term Loan	45.50	70.50	[ICRA] A (Negative); reaffirmed and assigned for enhanced amount; outlook revised to Negative from Stable
Short-term Fund-based Facilities	15.00	15.00	[ICRA] A2+; reaffirmed
Short-term Non-Fund-based Letter of Credit	10.00	10.00	[ICRA] A2+; reaffirmed
Total	70.50	95.50

Key Points

The long-term fund-based term loan facility has increased from Rs. 45.50 crore to Rs. 70.50 crore.
Despite the increase in the term loan amount, ICRA has maintained the [ICRA] A rating, indicating adequate credit quality.
The outlook revision to 'Negative' from 'Stable' suggests that ICRA perceives potential headwinds for UFBL in the near to medium term.
Short-term ratings for both fund-based and non-fund-based facilities remain unchanged at [ICRA] A2+, indicating a strong degree of safety regarding timely payment of financial obligations.

Implications

The reaffirmation of ratings, coupled with an enhanced credit facility, may indicate that United Foodbrands is maintaining its financial position while potentially expanding its operations. However, the revised negative outlook suggests that ICRA sees some challenges that could affect the company's credit profile in the future.

Investors and stakeholders should note that while the short-term ratings remain strong, the negative outlook on the long-term rating warrants attention to the company's future financial performance and market conditions in the food and hospitality sector.

United Foodbrands Limited has informed the stock exchanges of this credit rating update, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.