Q1 2025 Devyani International Ltd Earnings Call Transcript
Key Points
- Devyani International Ltd (BOM:543330) added 54 new stores in Q1 FY25, bringing the total store count to 1,836.
- The company reported a 44.3% year-over-year growth in operating revenue, reaching INR1,222 crore.
- The Indian business witnessed an 11.7% quarter-on-quarter growth with improved Average Daily Sales (ADS) for both KFC and Pizza Hut.
- The Thailand business demonstrated good growth with new store openings and strategic focus on customer delight.
- Consolidated operating EBITDA on a pre-Ind AS basis grew by 47% to INR141 crore, reflecting improved cost leverage and better ADS.
- The Nigerian currency continued its weakening trend, resulting in an overall loss of INR22.5 crore due to USD-denominated liabilities.
- Macroeconomic factors such as international conflicts and global boycotts impacted operations in certain geographies.
- Despite improved ADS, Pizza Hut's brand contribution margin remains low due to increased marketing expenses.
- The gross margins for the consolidated business were flat at 69.2%, with the Thailand KFC business operating at a lower gross margin compared to the Indian KFC business.
- The company faces headwinds from the West Asia conflict and brand boycotts, affecting consumer sentiment and sales.
Ladies and gentlemen, good day and welcome to the Devyani International's earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you see.
Thank you. Good afternoon, everyone, and thank you for joining us on Devyani International's Q1 FY25 earnings conference call. We have with us Mr. Ravi Jaipuria, Non-Executive Chairman of the company; Mr. Raj Gandhi, Non-Executive Director; Mr. Virag Joshi, CEO and Whole-Time Director; and Mr. Manish Dawar, CFO and Whole-Time Director of the company.
We will initiate the call with opening remarks by the Chairman, followed by key financial highlights from the CFO. Post that, we will open the forum for a question-and-answer session. Before we begin, I would like to point out that some statements made in today's call will be forward-looking in nature and a disclaimer to this effect has been included in the results presentation
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