Representative image of a cup of coffee from the British chain Costa Coffee.
Credit: X/@CostaCoffee
New Delhi: British coffee chain Costa Coffee reported a 49 per cent growth in revenue from operations to Rs 151.8 crore in India, Devyani International Ltd said in the annual report.
Its gross profit stood at Rs 116.6 crore, up 45 per cent from the year-ago period, it said.
Devyani International Ltd (DIL) is the master franchisee for Costa Coffee, which is owned by global beverage major Coca-Cola.
The company added 67 new stores in India in 2023-24, taking its count to 179.
"In FY24, revenue from operations stood at Rs 151.8 crore as against Rs 101.8 crore in the previous year, registering a growth of 49 per cent, driven by store expansion. Gross profit stood at Rs 116.6 crore as against Rs 80.4 crore in the previous year," it said.
However, its average daily sales per store was down to Rs 32,710 in FY24. It was at Rs 35,085 a year before.
"As the new stores stabilise and reach their maturity level, this performance is expected to improve," the company said.
DIL is having rapid expansion of Costa Coffee network in India, driven by the growing young population.
"Looking ahead, we are focused on adding 60-70 new units annually," it said, adding, "As we continue to pour our efforts into building the brand and seizing business opportunities, we are confident of crafting a stronger tomorrow." According to DIL, India's coffee culture is brewing stronger than ever.
"We are expanding Costa at a rapid pace to serve more consumers, having added 67 net new units in FY24, the highest in any year. With this expansion, we have more than trebled our store count over the last two years, growing from 55 stores to 179," it said.
DIL is expanding Costa Coffee's presence in high footfall locations, such as airports.
"With the domestic travel market booming, airports are buzzing with activity, making them prime spots for our premium coffee. Our presence at these locations aligns perfectly with the high demand and premium experience travellers seek," it said.
Costa Coffee competes with Starbucks, which is operated in a 50:50 JV with Tata group firm Tata Consumer Products and Barista in the fast growing Indian market.
"Our approach is about opening new channels and experimenting with different venues. The goal is to identify what works, understand consumer demand, and then expand these successful strategies into a regular part of our business," it said.
DIL also operates QSR chains of KFC and Pizza Hut in India. It also owns home-grown QSR chain Vaango.
DIL is promoted by RJ Corp Ltd, which is also a promoter of Varun Beverages Ltd (VBL), the bottling partner of PepsiCo.