Yum! Restaurants (India) has reported a profit of Rs 162.04 crore for FY24 while its revenue from operations was up 6.6% to Rs 689.93 crore, the company said in an RoC filing. Yum! Restaurants (India) Pvt Ltd is the holding company of Pizza Hut India Marketing and KFC India Marketing.
The total income of Yum! Restaurants (India) was up 13.4% 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 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.
Its “advertising promotional expenses” were at Rs 220.69 crore, down 3.8% in FY24.
However, its cost royalty was up 14% to Rs 175.10 crore. The royalty and technical licence fee paid to its parent entity was 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%.
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, 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 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.
(Source: PTI)
