Devyani International Limited reported a decline in profitability in September quarter of FY 2024 due to a challenging macro environment and low consumer sentiment.
The India franchisee for leading fast food chains, including KFC, Pizza Hut stores, and Costa Coffee stores, reported a revenue of Rs 819 crore, and an EBITDA margin of 19.4% for the September quarter.
However, the company saw a decline in its consolidated profit to Rs 36 crore from Rs 57 crore for the same quarter last year.
"High inflation across industries and categories from a macro-economic perspective has led to a short-term impact on consumer sentiment and spending in the last few quarters," said Ravi Jaipuria, Non-Executive Chairman of Devyani.
"Despite this, our performance remains resilient, and we continue to invest in the business for long-term growth. We are hopeful that a rebound in consumer spending will occur in the next few quarters, positioning us for success in the dynamic and evolving QSR landscape," he added.
Among core brand revenues in Q2 FY24, KFC stood at Rs 509 crore, Pizza Hut at Rs 184 crore and Costa Coffee at Rs 34.6 crore.
The company which had increased its store count to 1,358 by opening 68 new stores in the second quarter of FY 2024, said it is on track to add a further 200-275 in the current financial year.
"We have opened 115 net new stores in H1 taking the total store count to 1,358. Out of 115 stores in H1, we have opened 68 stores in Q2, across our brand portfolio. We are making consistent progress in investing in our Core Brands and expanding our reach to our target set of consumers to capitalize on the available growth opportunities in India. We are now present in more than 240 cities in India," Jaipuria said.
Devyani is the largest franchisee of Yum Brands in India and is among the largest operators of chain quick service restaurants (QSR) in India.
Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has a presence globally with more than 54,000 restaurants in over 155 countries.