India operator Devyani International reports 84% profit slump
The company operates brands such as KFC and Pizza Hut in India
Devyani International Limited, which operates brands such as KFC, Pizza Hut and Costa Coffee in India reported an 84% drop in its June 2023 quarter net profit to ₹117.5m ($1.42m) compared with ₹738.4m ($8.93m).
Revenue from its operations increased by 20% year-on-year (YoY) in Q1 2023. Total income increased by 19.6%. Profit in Q1 was impacted by a 24.6% increase in total expenses.
The company expanded its presence across brands and geographies, opening 47 net new stores in Q1 FY24. The company aims to bring its diverse brand portfolio closer to consumers and strengthen its presence in domestic markets through these new store expansions. As of 30 June, Devyani International 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. With a dedicated focus on customer satisfaction, innovation, and growth, we are poised for success in the dynamic and evolving QSR landscape,” Ravi Jaipuria, Non-Executive Chairman at Devyani International Limited said.