Yum! Restaurants (India) reports Rs 162 crore profit in FY24, income up 13% to Rs 832 crore

Yum! Restaurants (India), which owns QSR brands such as Pizza Hut and KFC in the Indian market, was back in the black in FY24, reporting a profit of Rs 162.04 crore while its revenue from operations was up 6.6 per cent to Rs 689.93 crore, the company said in an RoC filing.

The total income of Yum! Restaurants (India) was up 13.4 per cent to Rs 832.05 crore for the financial year ended on March 31, 2024, helped by other income -- mainly gains from the sale of its investments in Devyani International Ltd.

Yum! Restaurants (India) posted other income of Rs 142.11 crore for FY24 as against Rs 86.46 crore a year earlier, according to financial data accessed through business intelligence platform Tofler.

It had reported a loss of Rs 108.17 crore a year earlier in FY23 and its revenue from operations was at Rs 647.34 crore. Yum! Restaurants (India) Pvt Ltd is the holding company of Pizza Hut India Marketing and KFC India Marketing.

Its "advertising promotional expenses" were at Rs 220.69 crore, down 3.8 per cent in FY24. However, its cost royalty was up 14 per cent to Rs 175.10 crore.

The royalty and technical licence fee paid to its parent entity was at Rs 153.67 crore a year before in FY23. The total expense of Yum! Restaurants (India) was at Rs 671.33 crore in FY24, down 22.16 per cent.

During the fiscal year, Yum! Restaurants (India) disposed of its entire stake in Devyani International Ltd under a block deal for Rs 871.09 crore, which was initially acquired as part of a business transfer agreement for Rs 230 crore during FY21.

"The said sale of shares transaction resulted in an overall gain of Rs 635.05 crore (net of selling expenses of Rs 604.24 lakhs) when compared to the acquisition cost, while the gain recognised as part of 'other income' during the current year (due to measurement at FVTPL) amounts to Rs 97.20 crore (net of selling expenses)," it said.

FVTPL stands for fair value through profit or loss. Yum! Restaurants (India) is primarily engaged in the business of developing and managing quick service restaurant brands KFC, Pizza Hut, and Taco Bell through a mix of own stores and franchisees.

It also provides support services to such restaurants in certain neighbouring countries and to group companies. As per the agreements entered into by Yum!, its franchisees pay a certain percentage of their revenues as advertising contributions to the subsidiary companies.

In addition, thereto, certain business associates of Yum! also pay contributions towards advertising, marketing and promotion activities to the subsidiary companies.

Yum! Restaurants (India) is owned by Singapore-based Yum Asia Franchisee Pte Ltd, which is a unit of Louisville, Kentucky-based Yum! Brands Inc.