Devyani International narrows Q2 loss on KFC sales growth
The KFC and Pizza Hut operator reported a consolidated net loss of Rs 2.4 million for the second quarter.
Devyani International reported on Monday that its consolidated net loss for the second quarter narrowed to Rs 2.4 million ($25,301.78), down from a loss of Rs 218.9 million a year ago, according to BusinessLine.
The company, which is a franchisee of US-based Yum Brands, saw its revenue increase by 10.4 per cent to Rs 15.19 billion during the quarter, while expenses rose by 8.3 per cent.
Strong same-store sales at KFC outlets, which grew by 4.4 per cent, helped offset higher raw material costs. This marked the third consecutive quarter of growth for the KFC brand.
The consolidated gross margin rose by 70 basis points from the previous year to 68.5 per cent, despite a sequential decline of 60 basis points.
Chairman Ravi Jaipuria stated that discretionary spending is expected to remain under pressure as food inflation firms and interest rates begin to rise.
The company expects to achieve its annual target of adding between 200 and 220 net new outlets.