Yum! Restaurants India reduces ad spend, posts profit in FY24 after stake sale in Devyani International
Yum! Restaurant's advertising and promotional expenses stood at Rs 220.69 crore, down 3.8 percent in FY 24.
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Yum! Restaurants (India) Pvt Ltd, the holding company of Pizza Hut India Marketing and KFC India Marketing, has reported a profit of Rs 162.04 crore in the fiscal year 2024 after reporting a loss of Rs 108.17 crore in FY 23, PTI news agency reported citing Registrar of Companies filing.
Earlier this year, the US-based firm sold its entire 4.4 percent stake in Devyani International, the Quick Service Restaurant (QSR) operator, for Rs 871 crore through an open market transaction.
Yum's revenue from operations witnessed a 6.6 percent rise to Rs 689.93 crore while its other income stood at Rs 142.11 crore in FY 24 compared to Rs 84.46 crore a year earlier.
Yum! Restaurant's advertising and promotional expenses stood at Rs 220.69 crore, down 3.8 percent in FY 24. The company's total expenses declined by 22.16 percent to Rs 671.33 crore in the same period.
However, its cost royalty increased by 14 percent to Rs 175.10 crore. The royalty and technical license fee paid to its parent entity was Rs 153.67 crore a year before in FY23. Yum's franchisees pay a certain percentage of their revenues as advertising contributions to the subsidiary companies as per the agreement. Additionally, 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 Kentucky-based Yum! Brands Inc.
