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:<br><br>Financial Results:<br>- Revenue from operations for Q3FY24: Rs 8,431 million.<br>- EBITDA for Q3FY24: Rs 1,463 million.<br>- EBITDA margin: 17.4%.<br><br>Growth and Expansion:<br>- Completed acquisition of 283 KFC stores in Thailand.<br>The total store count now stands at 1,735, including the Thai acquisition.<br>- Aim to hit the target of 2,000 stores by the end of 2024, earlier than the initial 2026 goal.<br>- Added 94 new stores in Q3, with a fiscal year target to open 250 to 275 outlets.<br><br>Brand Performance:<br>- India business's revenue growth: 9.2% increase over the same period in the previous financial year.<br>- 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.<br><br>Market Presence:<br>- DIL operates brands like KFC, Pizza Hut, and Costa Coffee.<br>- As of December 31, 2023, ~1,400 stores across India, Nigeria, and Nepal, including the recently acquired Thai KFC stores.<br><br>Strategic Developments:<br>- Entered the Thailand QSR market through strategic acquisition.<br>- Acquisition of Restaurants Development Co. Ltd. completed on January 17, 2024.<br><br>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.<br><br>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.<br><br>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.”<br><br><br><br><br><br>Result PDF
Restaurants company Devyani International announced Q2FY24 results:<br><br>Financial Performance:<br>- Consolidated revenue for Q2FY24 stood at Rs 8,195 million, reflecting a growth of 9.6% on a YoY basis.<br>- EBITDA for Q2FY24 reached Rs 1,588 million, with an EBITDA margin of 19.4%.<br>- Despite the challenging macro environment and low consumer sentiment, DIL added 68 net new stores in Q2FY24, bringing the total store count to 1,358.<br>- The company remains bullish about achieving its target of 2,000 stores by 2026.<br><br>Highlights:<br>- The company continues to invest in its core brands and expand its reach to capitalize on growth opportunities in India.<br>- DIL is present in over 240 cities in India, showcasing its wide geographical footprint.<br>- The company is committed to its dynamic store expansion strategy, aiming to open 250-275 new stores in FY24.<br>- As of September 30, 2023, DIL operates 594 KFC stores, 539 Pizza Hut stores, and 146 Costa Coffee stores, with a total of 1,358 system stores across all geographies.<br>- Consistent progress is being made in investing in core brands and expanding reach to target consumers.<br><br>Ravi Jaipuria, Non-Executive Chairman, Devyani International, said, “I am pleased to share that DIL has maintained its store expansion pace. We have opened 115 net new stores in H1 taking the total store count to 1,358 as on 30th Sep’23. 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.<br><br>High inflation across industries and categories from a macroeconomic perspective has led to a short-term impact on consumer sentiment and spending in the last few quarters. 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 take place in the next few quarters, positioning us for success in the dynamic and evolving QSR landscape.”<br><br>He added, "In addition, our store expansion strategy stands as a testament to our belief in the long-term potential of the Indian QSR industry. Through our ongoing expansion efforts and a keen eye on emerging opportunities, we are well-positioned to seize this significant prospect, ensuring sustainable growth and value enhancement for all our stakeholders."<br><br><br><br><br><br>Result PDF
Conference Call with Devyani International Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.