The coffee brand, Starbucks India released the financial results for FY24. Starbucks is a known coffee drink-providing brand in the country. The startup showed a 12.05 percent increase in operational revenue to Rs 1,218 crore with a three-time jump in its losses in FY24. The startup focuses on providing coffee and a personalized customer experience. The company offers services through its online platform and offline stores.
Starbucks India offers several stores for coffee and related products. The biggest rival of Starbucks, Coffee Café Day, posted a revenue of Rs 1,013 crore in FY24 with around 450 stores in March 2024. The production of coffee beans and other related products accounted for 2 percent and increased the total expenses by 8.5 percent to Rs 343 crore in FY23.
However, electricity, employee benefits, rent, royalty, marketing, transportation, and other things took the total expenditure to Rs 1,320 crore in FY24. The startup reported a 220 percent increase in its losses to Rs 80 crore for this financial year.
Entrackr mentioned in its report that the firm earns its income from the sale of coffee and related products, delivery services, and commissions. The company also earns revenue from selling food through a loyalty program called My Starbucks Rewards, where customers earn loyalty points. The company plans to launch over 1000 stores in the next four years.
The company raised over 1 billion USD during its conventional debt funding round. The company claims to have 390 stores across 54 cities in India. Starbucks India is a joint venture between Tata Consumer Product Limited and Starbucks coffee company. Tata Starbucks has around 4,300 partners in India.
The Coffee drink brand is focused on improving its business model with better customer experience to strengthen its market presence. The firm plans to minimize losses by reducing operating expenses and employee benefits. The EBITDA margin also improved and stood at 18 percent, while the ROCE was reported to be around 0.4 percent in the same period.
The employee benefits expenses were also reduced this year. The company competes with new-age coffee startups such as Blue Tokai, Slay Coffee, Sleepy Owl, Seven Beans Co, and Thord Wave coffee roasters.
Conclusion:
The Coffee drinks brand, Starbucks India announced a 12.05 percent increase in its operational revenue to Rs 1,218 crore in FY24. This coffee brand offers an online platform and offline cafes for coffee drinks and related products. The sales of coffee, delivery service, and loyalty programs like my Starbucks reward are the company’s primary source of income.
The losses also increased by three times to Rs 80 crore and saw a 220 percent increase compared to the last financial year. The total expenditure of the firm increased by 15.79 percent and crossed Rs 1,320 crore in the same duration. The company aims to reduce its loss by controlling its operating expenses. The company has secured over 1 billion USD across its conventional debt funding round.
