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Curefoods Reports Rs 635 Crore Income in FY24, Cuts Losses by Half

Indian cloud kitchen major Curefoods has marked a robust fiscal year, reporting an impressive revenue growth while significantly slashing its losses. The Bengaluru-based company has showcased a 53% year-on-year growth in its operating scale for the financial year ending March 2024, driven by higher sales and cost optimization measures.

Strong Revenue Growth Amid Expanding Operations

Curefoods’ revenue from operations surged to Rs 585 crore in FY24, a 53.17% rise from Rs 382 crore in FY23, according to its consolidated financial statement filed with the Registrar of Companies (RoC). The growth reflects the success of its brands, including EatFit, Yumlane, Aligarh House Biryani, Masalabox, and CakeZone, which collectively operate across more than 100 kitchens in 12 Indian cities.

Curefoods brand logos and kitchens

In addition to operating income, the company earned Rs 50 crore from interest income, bringing its total income to Rs 635 crore for the fiscal year. The cloud kitchen platform’s expanding customer base and consistent demand have been pivotal to this performance.

Controlling Costs: A Strategic Shift

While Curefoods saw an increase in some expense categories, its decision to drastically cut advertising costs paid off. Advertising expenses dropped by a substantial 50.8% to Rs 52.8 crore. On the flip side, the cost of materials rose 33.72% to Rs 229.6 crore, reflecting higher sales volume.

Employee benefit expenses grew by 43.18%, reaching Rs 148.2 crore, as the company invested in strengthening its workforce. Other notable increases included guarantee commission expenses, which surged 56% to Rs 109.2 crore, and depreciation costs, up by 45.2% to Rs 62 crore.

Financial Highlights: Losses Halved Despite Rising Expenses

Despite nearly doubling its total expenses to Rs 806.8 crore, Curefoods halved its net losses to Rs 172.6 crore, showcasing its ability to manage costs effectively. The sharp reduction in advertising spend played a key role in achieving this milestone.

Key financial metrics include:

  • Return on Capital Employed (ROCE): -23.31%
  • EBITDA Margin: -12.88%
  • Unit Economics: Rs 1.38 spent to earn a rupee.

The firm reported Rs 326 crore in current assets at the end of March 2024, with Rs 37.5 crore in cash and bank balances, reflecting healthy liquidity.

The Road Ahead

Curefoods’ growth trajectory highlights the potential of the cloud kitchen model in India’s evolving food delivery market. By balancing cost management and operational expansion, the company is carving a sustainable path forward. However, challenges remain, particularly in achieving profitability amid rising operational costs.

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