Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (May 2024)
27 slides from Sapphire Foods India's investor presentation, May 15, 2024
Slide 1: Exchange filing cover letter - Corporate Presentation
Date: 15th May 2024 To, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Block G, C/1, Bandra Kurla Phiroze Jeejeebhoy Towers, Complex, Bandra (E), Mumbai – 400051 Dalal Street, Mumbai – 400001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, Subject: Corporate Presentation Pu
Slide 2: Sapphire Foods India Limited Corporate Presentation May 2024
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – MAY’24 1
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sapphire Foods India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Table of Contents
TABLE OF CONTENTS 1 SAPPHIRE FOODS AT A GLANCE Page 4-6 2 FINANCIAL OVERVIEW Page 7-12 3 SEGMENTAL PERFORMANCE ▪ KFC INDIA Page 14-15 ▪ PIZZA HUT INDIA Page 16-17 ▪ SRI LANKA BUSINESS Page 18 ▪ UNIT ECONOMICS Page 19 4 GROWTH STRATEGY Page 20-21 6 ESG Page 22 7 MANAGEMENT, BOARD & SHAREHOLDING PATTE
Slide 5: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 872 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (2) Sri Lanka’s Largest International QSR chain (1) 431 KFC Restaurants (2) 432 Pizza Hut Restaurants (2) ₹ 25,880 MN FY24 Restaurant 9 Taco Bell Restauran
Slide 6: Journey of Sapphire Foods: Platform of 872 Outlets
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 872 OUTLETS (1) 429 SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 319 Restaurants Cities 106 120 81 52 58 14 INDIA SRI LANKA KFC – 10 6 PH – 6 7 66 28 KFC – 21 KFC – 16 PH – 30 PH – 12 KFC – 10 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of P
Slide 7: The Sapphire Story
THE SAPPHIRE STORY Two global brands Execution Mindset (KFC & Pizza Hut) with Scale Great Customer & PAT profitability among experience along with Value based work Superior Back-end Top 3 QSR operators culture, high on operational excellence governance enabled by professional management, board and p
Slide 8: Financial Overview
FINANCIAL OVERVIEW
Slide 9: Sapphire Foods: 3-Year Scorecard
SAPPHIRE FOODS: 3-YEAR SCORECARD 3-Year Relentless Execution. Grit. CAGR Performance. 17% No. of 28% 26% 33% 743 872 FY24 Highlights Restaurants 579 437 • Sapphire has delivered the best all-round FY21 FY22 FY23 FY24 performance in the QSR industry (all 15% parameters considered): Revenue scale & 32
Slide 10: Summary Consolidated Financials Q4 & FY24
SUMMARY CONSOLIDATED FINANCIALS Q4 & FY24 Particulars Q4 FY24 Q4 FY23 Change YoY FY24 FY23 Change YoY Restaurant Sales ₹ mn 6,297 5,592 13% 25,880 22,571 15% Adj. EBITDA ₹ mn 544 563 -3% 2,717 2,647 3% % 8.6% 10.1% -150 bps 10.5% 11.7% -120 bps EBITDA ₹ mn 1,102 1,030 7% 4,718 4,343 9% % 17.5% 18.4%
Slide 11: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Net Restaurant 164 129 57 28 35 36 22 Additions 872 778 814 850 872 743 743 31-Mar-23 31-Mar-24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 RESTAURANT SALES (INR mm) 15% increase 25,880 22,571 13% Increase 17,154 on Y-O-Y 6,526 6,414 6,643 6,297 5,5
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.6% 68.9% 68.7% 68.9% 69.0% 69.1% 100 67.6% 68.1% bps YoY FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 RESTAURANT EBITDA (₹ MN / %)# 15.8% 17.4% 260 bps 17.6% 1,250 17.2% YoY 1,150 16.1% 16.0% 3,929 4,092 1,050 16.2% 3,025 950 1,128 13.6% 5% 850 910
Slide 13: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 10.5% 9.4% 11.8% 10.9% 150 bps 10.1% 10.6% 2,647 2,717 8.6% YoY 1,514 772 678 722 3% 563 544 YOY FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 EBITDA (₹ MN / %) 19.2% 18.2% 90 18.8% 18.2% 18.4% bps 17.8% 4,718 17.5% YoY 4,343 18.4% 1,224
Slide 14: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 15: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Value Chicken Category Craveable Taste - Lunch variety menu launch + Relevance - Build day part occasions of + ‒ Innovation: Reintroduction of Chizza as limited time offer ‒ International Burger Fest + with advertising at ₹149/- - Snackers range at ₹99/- - New valu
Slide 16: Core Composition of Our Business: KFC India
CORE COMPOSITION OF OUR BUSINESS: KFC INDIA AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR 31, / FOR FY21 / FOR FY22 /FOR FY23 2024 /FOR FY24 Total Restaurant Count 203 263 341 429 Average Daily Sales per Restaurant (INR‘000s) 106 130 135 125 Restaurant Related 18% Revenue (in IN
Slide 17: Update on Pizza Hut Action Plan
UPDATE ON PIZZA HUT ACTION PLAN Actionable Status Comment A. Build Brand: - Product Innovation Launched Melts, Thin Crust Pizza and revamped Pasta range in Mar-24 - Enhanced Marketing Rolled out mass media campaign for Melts Investments B. Grow Dine In / Home Service: Dragon Tail (kitchen planning t
Slide 18: Core Composition of Our Business: Pizza Hut India
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR 31, /FOR FY21 / FOR FY22 / FOR FY23 2024 / FOR FY24 Total Restaurant Count 162 219 286 319 Average Daily Sales per Restaurant (INR‘000s) 48 57 58 46 Restaurant Related 1% Revenue (in
Slide 19: Core Composition of Our Business: Sri Lanka Operations
CORE COMPOSITION OF OUR BUSINESS: SRI LANKA OPERATIONS AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR31, 2024 / FOR FY21 / FOR FY22 / FOR FY23 / FOR FY24 Total Restaurant Count 70 95 114 120 Average Daily Sales per 94 108 72 79 Restaurant (INR‘000s) YoY Restaurant Related 52% (IN
Slide 20: Unit Economics
UNIT ECONOMICS INDIA INDIA As of 31-Mar-19 Current As of 31-Mar-19 Current Avg Size of Restaurant ~ 1,500 ~ 1,200 (in Sq. ft.) 2,736 2,427 Reduction in Avg Reduction in Avg Restaurant size ~45% Restaurant size ~45% FY19 FY23 FY24 FY19 FY23 FY24 Average Daily Sales per Restaurant 125 135 125 61 58 46
Slide 21: Well Positioned to Capture Future Opportunities
WELL POSITIONED TO CAPTURE FUTURE OPPORTUNITIES Pu h Explore t rs nic Grow Accelerate acquisition of ue conversion from high quality and Inorgani unorganized food scalable QSR and services to KFC food brands in a and PH brands existing and new rg c O Gr owth geographies.. Capability + Capital Cash n
Slide 22: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 23: DJSI ESG Ratings
DJSI ESG RATINGS S&P CORPORATE SUSTAINABILITY ASSESSMENT ➢ 1st amongst QSR brands in India ➢ 95th Percentile Ratings amongst Global QSR companies ➢ Key Areas of Impact: a. Human Capital Development b. Business Ethics c. Customer Relationship Management https://www.spglobal.com/esg/scores/results?cid
Slide 24: Right People in Key Seats: Management Team
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Deepak Taluja Vikrant Vohra CEO – KFC Vijay Jain Nandita Bapat Priya Adiseshan Amar Patel Ashu Khanna Niraj Patil Puneet Bhatia CEO – Pizza Hut CFO Head - Projects Chief People Chief Tech Officer Head Supply Head Lega
Slide 25: Board of Directors
BOARD OF DIRECTORS OUR DIRECTORS Sunil Chandiramani Sanjay Purohit Sumeet Narang Deepa Wadhwa Vinod Nambiar Vikram Agarwal Annu Aggarwal Nobert Fernandes Kabir Thakur Chairman and Whole Time Director Non-Executive Independent Non-Executive Non-Executive Independent Non-Executive Non-Executive Indepe
Slide 26: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 31st Mar 2024) % Holding Promoters & Promoter Group 30.8 Foreign Portfolio Investors / Non-Resident Indians 30.5 Domestic – Mutual Funds Insurance Companies 31.0 AIF, Resident Individuals & Others 7.7 Total 100.0 Source: Company data 25
Slide 27: Thank You
THANK YOU Company: Investor Relations Partner: Sapphire Foods India Limited Orient Capital (a division of Link Group) CIN: L55204MH2009PLC197005 Mr. Bhavya Shah Mr. Rahul Kapoor Email ID: bhavya.shah@linkintime.co.in Email ID: rahul.kapoor@sapphirefoods.in +91 8082748577 www.sapphirefoods.in www.ori
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