You will hate them.
You know that these are unhealthy food.
But the stupendous growth YoY just proves one point.
"Convenience & Experience" matter more than anything to us.
More so when it comes to our eating habits.
Devyani International [FY23 AR Notes]
Letโs go!
You know that these are unhealthy food.
But the stupendous growth YoY just proves one point.
"Convenience & Experience" matter more than anything to us.
More so when it comes to our eating habits.
Devyani International [FY23 AR Notes]
Letโs go!
Before we go to the notes from the FY23 AR, let us tell you that we did a deep dive on the QSR space in our 12th and 13th MissioN SMILE webinars in February and March, 2022 respectively.
If you wish to access the recording of our deep dive on the QSR space, become a MissioN SMILE member.
missionsmile.smartsyncservices.com
missionsmile.smartsyncservices.com
Now letโs start from the start.
About Devyani:
Established in 1991.
Indiaโs largest operator of QSRs.
Operations in Nigeria and Nepal too.
A diverse portfolio of iconic global brands. (KFC, PH, & CC).
Along with successful in-house brand creations.(Vaango & Food Street)
About Devyani:
Established in 1991.
Indiaโs largest operator of QSRs.
Operations in Nigeria and Nepal too.
A diverse portfolio of iconic global brands. (KFC, PH, & CC).
Along with successful in-house brand creations.(Vaango & Food Street)
โStrong Core, Going for More!โ
Store Expansion
Maximizing Cost Efficiencies
Enhancing Experiences Drives
Enhanced Delivery Experiences
Technology and Digital Investments
Store Expansion
Maximizing Cost Efficiencies
Enhancing Experiences Drives
Enhanced Delivery Experiences
Technology and Digital Investments
Brand Portfolio
1108 Core Brand Stores
16,876 Number of Employees
1243 System-wide Store Count
26 yrs of association with Yum Brands
240+ Indian cities have core brand stores
KFC: 543, Pizza Hut: 510, Costa Coffee: 112
1108 Core Brand Stores
16,876 Number of Employees
1243 System-wide Store Count
26 yrs of association with Yum Brands
240+ Indian cities have core brand stores
KFC: 543, Pizza Hut: 510, Costa Coffee: 112
Key Attributes & Capabilities
People at the Core
Proven Track Record
Leading Global Brands
Multifaceted Approach
Strong Technology Focus
Extensive Consumer Reach
Supply Chain & Opn Synergies
People at the Core
Proven Track Record
Leading Global Brands
Multifaceted Approach
Strong Technology Focus
Extensive Consumer Reach
Supply Chain & Opn Synergies
Highlights of the year that went by
KFC:
Yum Brand partnership driving innovation.
On-Premises share rises from 56% in FY22 to 64% in FY23.
Rev, ADS, SSSG, GP, & Brand Cont witness growth.
Focus on both dine-in and delivery formats.
Flagship stores got a good reception, goal-10% of new openings as flagship stores.
Yum Brand partnership driving innovation.
On-Premises share rises from 56% in FY22 to 64% in FY23.
Rev, ADS, SSSG, GP, & Brand Cont witness growth.
Focus on both dine-in and delivery formats.
Flagship stores got a good reception, goal-10% of new openings as flagship stores.
Pizza Hut
Expanding market reach
Adding stores at a fast pace
GP Margins remained strong
Strengthening brand presence
Integration with ONDC platform
ADS remained intact but SSSG was hit hard
A delivery-centric model with strategically located dine-in and flagship stores.
Expanding market reach
Adding stores at a fast pace
GP Margins remained strong
Strengthening brand presence
Integration with ONDC platform
ADS remained intact but SSSG was hit hard
A delivery-centric model with strategically located dine-in and flagship stores.
Costa Coffee
SSSG YoY at 56%
No of stores doubled
ADS increased from 29k per store to 35k.
Gross margin continues to remain high at ~80%
Brand contribution reduced from 30% in FY22 to 24% in FY23 (high input inflation)
SSSG YoY at 56%
No of stores doubled
ADS increased from 29k per store to 35k.
Gross margin continues to remain high at ~80%
Brand contribution reduced from 30% in FY22 to 24% in FY23 (high input inflation)
A Mix of flagship and compact stores
Compact smaller stores provide Convenience & Accessibility
Flagship stores situated in prime locations showcase the brand & enhance its visibility
Compact smaller stores provide Convenience & Accessibility
Flagship stores situated in prime locations showcase the brand & enhance its visibility
Home-grown brands
Vaango and The Food Street, their in-house brands, have been successfully incubated.
With a deep understanding of what works for these brands, they are ready to steadily grow them and make them a sizeable category in the foreseeable future.
Vaango and The Food Street, their in-house brands, have been successfully incubated.
With a deep understanding of what works for these brands, they are ready to steadily grow them and make them a sizeable category in the foreseeable future.
International Business
Performance Highlights
MDA
Foodservice market is to reach a staggering USD 79.65 billion by 2028.
Thatโs a CAGR of 11.19% from USD 41.1 billion in 2022.
The unorganized sector continues to have the lion's share of the market
But the organized sector has shown tremendous growth in the last decade.
Foodservice market is to reach a staggering USD 79.65 billion by 2028.
Thatโs a CAGR of 11.19% from USD 41.1 billion in 2022.
The unorganized sector continues to have the lion's share of the market
But the organized sector has shown tremendous growth in the last decade.
QSR is expected to increase from USD 690.21 mn in 2022 to USD 1,069.3 mn by 2027, at a CAGR of 9.15%
The segment in which co operates is expected to be the fastest-growing sub-segment in the entire food service market, expanding at an impressive CAGR of 23% between FY20 & FY25.
The segment in which co operates is expected to be the fastest-growing sub-segment in the entire food service market, expanding at an impressive CAGR of 23% between FY20 & FY25.
Key Drivers for Growth & Opportunity
Digital Revolution
Rapid Urbanization
Demographic Dividend
Rise in Per Capita Income
Changing family Dynamics
Diversifying Food Preferences
Enhanced Accessibility & Expansion
Expanding Influence of Food Aggregators
Digital Revolution
Rapid Urbanization
Demographic Dividend
Rise in Per Capita Income
Changing family Dynamics
Diversifying Food Preferences
Enhanced Accessibility & Expansion
Expanding Influence of Food Aggregators
Future Growth Strategy
Technology Integration
Streamlining Operations
Strengthening Distribution
Strong Product Innovation
Expanding Brand Presence
Technology Integration
Streamlining Operations
Strengthening Distribution
Strong Product Innovation
Expanding Brand Presence
The biggest risk IMHO is the threat of competition.
QSR in India is still in its nascent stage and hence offers a good growth opportunity to all the players.
But it is extremely difficult to gauge who will be the winners in the next 5,7,10 years.
QSR in India is still in its nascent stage and hence offers a good growth opportunity to all the players.
But it is extremely difficult to gauge who will be the winners in the next 5,7,10 years.
Contingent Liabilities & Related Party Transactions do not raise any alarm signal.
FInancials in snapshots with our commentary
A Few snapshots from the Notes to Accounts
Future of QSR?
A slide from our MissioN SMILE webinar
A slide from our MissioN SMILE webinar
The fastest way to learn in-depth about the business of Devyani is to just read out the following 3 freely available sources:
1. Latest AR
2. Latest corporate ppt
3. SSS concall notes
smartsyncservices.com
1. Latest AR
2. Latest corporate ppt
3. SSS concall notes
smartsyncservices.com
The annotated AR and our commentary is available for our MissioN SMILE members.
Get a glimpse of the same in this short 5 min video.
Be a part of our growing community of learners.๐
Thank you for reading.๐
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Get a glimpse of the same in this short 5 min video.
Be a part of our growing community of learners.๐
Thank you for reading.๐
โRetweetโ the 1st tweet If it added value to you.๐
If you like our research, just 3 steps to follow.๐
1. "Retweet" the 1st Tweet
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More about MissioN SMILE here๐
1. "Retweet" the 1st Tweet
2. Follow us @SmartSyncServ
3. Download our โMissioN SMILEโ Android App and get lots of free sessions for you to explore and learn.
More about MissioN SMILE here๐
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