Curefoods, a leading player in the Indian cloud kitchen sector, has announced impressive financial results for the fiscal year 2024 (FY24). The Bengaluru-based company reported a substantial income of ₹635 crore, marking a 53.17% year-on-year increase from ₹382 crore in FY23. This growth comes amid a strategic reduction in advertising expenses, enabling the company to halve its net losses during the year.
PC: The Hindu Business Line
Revenue Growth and Operational Performance
Revenue from operations of Curefoods more than doubled to ₹585 crore in FY24. This is primarily on account of its sound business model and the popularity of the food brands under it. It operates over 100 kitchens across 12 cities in India offering EatFit, Yumlane, Aligarh House Biryani, Masalabox, and CakeZone. The company had generated interest income of ₹50 crore to add up to its overall income of ₹635 crore.
This growth trajectory shows how Curefoods can leverage the growing demand for convenient and diverse food options, especially in the rapidly expanding cloud kitchen market. The company’s emphasis on quality and innovation has allowed it to become a very strong competitor in the sector.
Cost Management Strategies
On the cost side, Curefoods has incorporated major cost control measures. The cost of material which is the highest in the list of its spends is up by 33.72% at ₹229.6 crore. It cut down its advertisement expenses by 50.8% to ₹52.8 crore. Such a cutback speaks to a change in the direction toward effective marketing strategies.
Employee benefit expenses increased by 43.18% to ₹148.2 crore as the company invests more in its people to help grow the business. Guarantee commissions and depreciation costs have increased also, bringing other expense up to ₹806.8 crore; it is almost twice of the previous year’s figures.
Significant Decrease in Losses
Curefoods’ prudent approach to finance has finally started to bear fruit, with the company reducing its net losses by 50% to ₹172.6 crore in FY24. The company has been able to reap the benefits of its cost-cutting measures and operational efficiencies. Even as the food delivery market remains challenging, Curefoods has shown resilience and adaptability. The return on capital employed (ROCE) and EBITDA margin stand at -23.31% and -12.88%, respectively.
The unit economics of the company show that it spent ₹1.38 to earn every rupee in FY24, which is a sign of its continuous efforts to increase profitability. As of March 2024, Curefoods reported current assets of ₹326 crore, including a cash and bank balance of ₹37.5 crore, which keeps it well-positioned for future growth.
Competitive Landscape and Future Prospects
Curefoods is the number two player in the space of cloud kitchen, only after Rebel Foods. Competitions are tough, though, with other notable competitors such as EatClub and Biryani By Kilo fighting for market share. Rebel Foods, recently raised $210 million, which puts a pressing need on Curefoods for staying ahead of the competition.
Going forward, Curefoods would have to operate in a market that faces high platform dependence and may negatively impact margins. Analysts would expect that in 2025, Curefoods will try harder to offset the influence of food delivery platforms like Swiggy and Zomato. However, going forward is uncertain, but the strategic initiatives taken by Curefoods along with operational efficiency have given it an edge in continuing growth in the cloud kitchen business.
In summary, the FY24 performance of Curefoods portrays a growth trajectory in line with strong results and shows a commitment towards improvement in profitability. Through innovation approach and strategic focus, it can easily tackle an ever-evolving market landscape.
