Devyani International on Friday posted its fiscal first quarter profit at Rs 11.76 crore, down 84.1 per cent in comparison to Rs 73.85 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 846.63 crore, up 20.1 per cent as against Rs 704.72 crore during Q1FY23. The company EBITDA stood at Rs 174 crore. The company posted a total income of Rs 853.46 crore, up 19.6 per cent in comparison to Rs 713.72 crore during Q1FY23. However, the total expenses for the quarter stood at Rs 793.16 crore, up 24.6 per cent from Rs 636.58 crore a year earlier, which impacted the profit during the quarter.
The company said that it registered a healthy performance across its core brands, despite a challenging macro environment and depressed consumer spending. The revenue increased by 12.1 per cent on-quarter basis led by new store additions and strong revenue contribution by KFC, it said. Further, the profit was impacted because of significant currency devaluation in Nigeria.
Devyani International’s network
Devyani International is the largest franchisee of Yum Brands in India and operates 1,290 stores across India, Nigeria and Nepal, as of June 30, 2023. In addition, DIL is a franchisee for the Costa Coffee brand of sores in India. Yum! Brands operates brands such as KFC, Pizza Hut and Taco Bell brands. The Company expanded its presence across brands and geographies, opening 47 net new stores in Q1FY24. As of June 30, 2023, DIL operates 564 KFC stores, 525 Pizza Hut stores, and 123 Costa Coffee stores, with a total of 1,290 system stores across all geographies.
“We are going to be opening 275 to 300 stores during the current fiscal year, as we continue working towards our ambitious target of reaching 2,000 stores by 2026. Vaango, our own south Indian cuisine brand is shaping up nicely and we are bullish on this brand given the popularity of south Indian cuisine in the entire country. We have opened 52 stores in Vaango so far and Vaango is expected to be a Rs 1 billion brand by the end of the current financial year,” said Ravi Jaipuria, Non-Executive Chairman, Devyani International.
Appointment announcement
Meanwhile, Devyani International board also approved the appointment of Sreejit Madhavan Nair as the CEO of Costa Coffee, with effect from August 4, 2023. Sreejit Madhavan Nair has MBA degree in marketing, and comes with a track record of over 23 years including strategic leadership roles across consumer goods categories including food and non-food segments. He has held leadership roles with leading companies like PepsiCo, Henkel Arabia and P&G as well as startups like Raw Pressery and Wingreens Farms.