Devyani International, the company behind popular fast-food chains like KFC, Pizza Hut, and Costa Coffee, has unveiled its financial results for the fourth quarter of the fiscal year 2024. Despite experiencing a consolidated net loss of Rs 49 crore, the company achieved a significant milestone by surpassing Rs. 10 billion in total revenue during the quarter. Here’s a breakdown of Devyani International’s Q4FY24 performance:
Consolidated Net Loss and Total Revenue
In a regulatory filing on May 14, 2024, Devyani International reported a consolidated net loss of Rs 49 crore for the March quarter, marking a significant downturn compared to a profit of Rs 60 crore in the corresponding period of the previous year. However, the company witnessed a robust growth trajectory in terms of total revenue, which stood at Rs 1,047 crore, reflecting a substantial increase of 38.69 percent from Rs 754.9 crore in the year-ago period.
EBITDA and Margins
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter amounted to Rs 172.3 crore, representing a growth of 14.4 percent. However, EBITDA margins reported a slight decline, standing at 16.5 percent compared to 20 percent in the corresponding period of the previous year.
Strategic Expansion and Milestones
The company achieved a significant milestone by surpassing Rs. 10 billion in total revenue during the fourth quarter. This achievement was attributed to various strategic initiatives, including acquisitions in Thailand and the addition of new stores. Notably, the company opened 256 new stores over the course of the year, including 47 in the fourth quarter, bringing the total store count to 1,782 as of March 31, 2024. The acquisition of 283 KFC stores in Thailand on January 18, 2024, further expanded the company’s global presence. Devyani International experienced a one-time loss of Rs 42.3 crore during the quarter, impacting its financial performance.
Future Outlook and Expansion Plans
Despite the challenges posed by the current economic environment, Devyani International remains optimistic about the future. The forecast for the Indian market in 2024 appears promising, and the company is well-positioned to capitalize on this positive trend. Moreover, with its entry into the Thailand market and ongoing expansion efforts, Devyani International aims to further strengthen its foothold in the global QSR industry.
Focus on Domestic and International Markets
In addition to its presence in India, Nepal, and Nigeria, Devyani International is actively exploring opportunities in other markets. The successful acquisition and integration of the KFC business in Thailand underscore the company’s commitment to expanding its global footprint.
Diversification Strategies
Recognizing the evolving consumer preferences and market dynamics, Devyani International is diversifying its business portfolio. The company is focusing on growing its domestic Food Courts business, particularly in response to the rising demand for on-the-go food options in India. By partnering with leading cinema chains like PVR and INOX to develop and operate Food Courts in malls nationwide, Devyani International aims to enhance its presence and leverage synergies between entertainment and dining experiences.
Market Performance and Share Price
Following the disclosure of its Q4FY24 results, Devyani International shares were trading at Rs 156.20, reflecting a slight increase of 0.51 percent at 1:08 pm on the Bombay Stock Exchange (BSE). Reporting a consolidated net loss for the quarter, Devyani International has demonstrated resilience and strategic foresight in navigating the challenges of the market. With a focus on expansion, diversification, and market penetration, the company remains poised for long-term growth and value creation.
Read more: Marketing News, Advertising News, PR and Finance News, Digital News
