Devyani (DEVYANI) Q3 24/25 earnings summary

Executive summary

• Achieved a milestone of over 2,032 stores as of December 31, 2024, adding 111 net new units in Q3 FY25, ahead of guidance.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

• Store expansion, especially in core brands (KFC, Pizza Hut, Costa), was a key growth driver in Q3 FY25.

• KFC awarded Most Admired Retailer of the Year for Market Expansion.

• Appointment of Mr. Deepak Kumar as Head of Finance, effective February 11, 2025.

Financial highlights

• Q3 FY25 consolidated revenue was INR 12,945 million, up 53.5% year-over-year, including the Thailand business acquired in January 2024.

• Consolidated net loss for Q3 FY25 was INR 76.46 million, compared to a net profit of INR 50.70 million in Q3 FY24.

• Gross margin for the quarter was 68.7%, down 60 bps sequentially due to food inflation.

• Consolidated operating EBITDA (pre-Ind AS) was INR 1,310 million (10.1% margin), up from INR 1,140 million in Q2.

• Profit before tax was INR 85 million in Q3 FY25, reversing a loss of INR 39 million in Q2 FY25.

Outlook and guidance

• Store expansion strategy to continue, balancing growth and store-level performance.

• Expansion in Pizza Hut to be moderated going forward, with focus on brand performance.

• Confident of margin improvement in KFC and Pizza Hut from Q4 onward due to cost optimization and marketing recalibration.

• Thailand to see 20%-25% store growth and 3%-4% SSSG, aiming for 11%-12% revenue growth in FY26.

• Financial results reviewed and recommended by the Audit, Risk Management and Ethics Committee and approved by the Board.