Devyani (DEVYANI) Q2 24/25 earnings summary

Executive summary

• Added three new QSR brands—Tealive, New York Fries, and Sanook Kitchen—expanding the brand portfolio and exclusive rights in India.

• Opened 139 new stores in H1 FY25, reaching 1,921 stores as of September 30, 2024, on track to meet 2,000 stores guidance for FY25.

• KFC and Vaango! received industry awards for growth and performance at the Indian Restaurant Awards 2024.

• Continued focus on store expansion, menu innovation, and adapting to evolving consumer preferences.

• Unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2024 were approved.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,222 crores, up 49% year-over-year; H1 FY25 revenue: INR 2,444 crores, up 47% year-over-year.

• Q2 FY25 consolidated EBITDA: INR 199 crores (16.3% margin), down from 19.4% in Q2 FY24.

• Q2 FY25 consolidated net loss: INR 43.45 million, compared to a profit of INR 80.96 million in Q2 FY24.

• Gross margin for Q2 FY25: 69.3%, down 1.5% year-over-year.

• KFC India Q2 FY25 revenue: INR 543 crores (+6.8% YoY); Pizza Hut India: INR 185 crores (+0.5% YoY); Costa: INR 49 crores (+41.6% YoY).

Outlook and guidance

• Store addition targets for 2024 and 2025: KFC 100-110 stores, Pizza Hut 60-70 stores annually.

• New brands to launch in India from April 2025 onwards, with localization and management hiring underway.

• First year for new brands will be experimental with low CapEx; expansion to follow based on results.

• No formal guidance on SSG or margin recovery, but management expects to recover margin losses if consumption trends improve.

• Recent investments and new joint ventures indicate ongoing expansion in international and domestic markets.