Costa Coffee Sees 49% Rise In Revenue In FY24, Expands Store Count

The British coffee chain Costa Coffee has reported a 49% increase in operational revenue, amounting to Rs 151.8 crore in India, according to Devyani International's annual report. The report also stated that the gross profit rose by 45%, reaching Rs 116.6 crore as compared with the previous year.

In fiscal 2024, the company expanded its presence in India by opening 67 new stores, bringing the total number of stores to 179. 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.

Devyani International 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. "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. DIL is expanding Costa Coffee's presence in high footfall locations, such as airports.

"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.

"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.

Devyani International is the master franchisee for Costa Coffee, which is owned by global beverage major Coca-Cola. DIL is promoted by RJ Corp Ltd., which is also a promoter of Varun Beverages Ltd., the bottling partner of PepsiCo.

(With Text Inputs From PTI)