Devyani Reports Higher Loss, Appoints New CEO Ahead of Merger
Devyani International, the operator of KFC and Pizza Hut outlets in India, posted a consolidated net loss of ₹103.9 million ($1.15 million) for Q3 ended December 31, a sharp increase from ₹4.9 million a year ago, primarily due to a one-time charge linked to India’s new labor laws. Excluding this charge, the company recorded a profit of ₹659.8 million ($7.31 million), and shares closed 6% higher.
The company announced a leadership change, with CFO Manish Dawar set to become CEO from April 1, replacing Viraj Joshi, who will continue as a non-executive director. Anupam Kumar, previously executive VP – finance, will take over as CFO. Experts say Dawar’s appointment will enable bolder financial decisions ahead of Devyani’s planned $934 million merger with Sapphire Foods, creating a franchisee network of over 3,000 outlets.
Devyani’s same-store sales for Pizza Hut fell 9.1% year-on-year, while KFC outlets saw a 2.9% dip, showing improvement from the previous quarter. Overall revenue rose 11% to ₹14.41 billion, driven by a 12% increase in India sales, indicating resilience amid competitive pressures and rising operational costs.
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