Conference Call with Devyani International Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Restaurants company Devyani International announced Q3FY24 results: Financial Results: - Revenue from operations for Q3FY24: Rs 8,431 million. - EBITDA for Q3FY24: Rs 1,463 million. - EBITDA margin: 17.4%. Growth and Expansion: - Completed acquisition of 283 KFC stores in Thailand. The total store count now stands at 1,735, including the Thai acquisition. - Aim to hit the target of 2,000 stores by the end of 2024, earlier than the initial 2026 goal. - Added 94 new stores in Q3, with a fiscal year target to open 250 to 275 outlets. Brand Performance: - India business's revenue growth: 9.2% increase over the same period in the previous financial year. - Revenue for core brands in Q3FY24: KFC at Rs 5,243 million, Pizza Hut at Rs 1,796 million, and Costa Coffee at Rs 397 million. Market Presence: - DIL operates brands like KFC, Pizza Hut, and Costa Coffee. - As of December 31, 2023, ~1,400 stores across India, Nigeria, and Nepal, including the recently acquired Thai KFC stores. Strategic Developments: - Entered the Thailand QSR market through strategic acquisition. - Acquisition of Restaurants Development Co. Ltd. completed on January 17, 2024. Commenting on the performance for Q3FY24, Ravi Jaipuria, Non-Executive Chairman, Devyani International said, “At the outset, I feel very excited to share with all of you that we have successfully completed the acquisition of Restaurants Development Co Ltd (RD) one of the franchisee partners of KFC in Thailand. This has led to the addition of 283 KFC stores as of 31st December (274 stores as of 30th September) to our overall store portfolio. We have witnessed subdued consumer sentiments. However, we believe that the weak consumer sentiment and depressed consumer spending are temporary & short-lived, and we are optimistic about witnessing a recovery over the next few quarters. Amid these challenges, our operating and financial performance has remained stable, and we continue to invest in the business for long-term growth. We had previously set ourselves an ambitious goal of reaching 2,000 stores by 2026. You will be happy to note that, following the completion of the Thailand acquisition, we are confident of achieving this major milestone by the end of calendar year 2024.” Result PDF