Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q3 FY2023 Earnings Presentation
57 slides from Sapphire Foods India's earnings presentation, Feb 9, 2023
Slide 1: Outcome of Board Meeting letter
Sapphire Foods Date: February 09, 2023 To, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Block G, C/1, Sandra Kurla Phiroze Jeejeebhoy Towers, Complex, Sandra (E), Mumbai - 400051 Dalal Street, Mumbai - 400001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, S.ubject: Outco
Slide 2: Board meeting outcome letter (continued)
SapphireFoods The meeting of Board of Directors commenced at 11.45 a.m. and the Board approved the \ aforementioned Unaudited Financial Results, inter-alia, at 01.15 p.m. The meeting of the Board of Directors is continuing for rest of the routine business matters. Request you to kindly take the same
Slide 3: Auditor's Review Report on Standalone Results
12th Floor, The Ruby S R B C & CO LLP 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of
Slide 4: Statement of Unaudited Standalone Financial Results
0 SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC197005, Email: info@sapphirefoods.in, Website: www.sapphirefoods.in Statement of Unaudited Standalone Financial Results for the qua
Slide 5: Notes to Standalone financial results
0 SapphireFoods Notes to Standalone financial results: 1. The above standalone financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on February 09, 2023. 2. These standalone financial results have been prepared in a
Slide 6: Auditor's Review Report on Consolidated Results
12th Floor, The Ruby S R B C& CO LLP 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of
Slide 7: Limited review report for consolidated results
S R B C & CO LLP Chartered Accountants Sapphire Foods India Limited Limited review report for consolidated financial results 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration referred to in paragraph 6 below, nothing has come to o
Slide 8: Statement of Unaudited Consolidated Financial Results
0 SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC197005, Email: info@sapphirefoods.in, Website: www.sapphirefoods.in Statement of Unaudited Consolidated ~inancial Results for the q
Slide 9: Notes to Consolidated financial results
0 SapphireFoods Notes to Consolidated financial results: 1. The above consolidated financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on February 09, 2023. 2. These consolidated financial results have been prepare
Slide 10: Consolidated Revenue grows 17% wherein India Business grows by 24%
Investor Release Despite challenging demand conditions, Sapphire Foods Consolidated Revenue grows 17% wherein India Business grows by 24% Mumbai, 9th February, 2023 – Sapphire Foods India Ltd, a franchisee of Yum Brands in the Indian subcontinent announces its Unaudited Financial Results for the Qua
Slide 11: Sri Lanka update and About Sapphire Foods
While operating conditions in Sri Lanka have stabilised, consumers wallets have been impacted by high inflation and taxes. While same-store transactions declined, overall Revenue grew by 39% in LKR terms ( 15% in INR terms) with SSSG of 18% in LKR terms. Restaurant EBITDA margins were at 14.6% ( 9
Slide 12: Q3 and 9M FY23 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q9M Q3 AND FY22 Earnings FY23 Presentation EARNINGS PRESENTATION February FEB 2022 2023
Slide 13: 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 14: Key Highlights Q3 FY23
KEY HIGHLIGHTS Q3 FY23 ➢ Despite softening of demand post Diwali, our Q3 FY23 Consol Revenue (₹ 5,939 Mn) grew by 17%, wherein India Revenue delivered robust growth of 24% ➢ Consol Restaurant EBITDA grew YoY* by 5% at 18.1% ( 210 bps) primarily due to adverse Sri Lanka impact. India Restaurant EBIT
Slide 15: Table of Contents
TABLE OF CONTENTS 1 THE SAPPHIRE STORY Page 5 2 Q3 & 9M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS Page 6-13 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 14-23 ▪ PIZZA HUT INDIA Page 24-33 ▪ SRI LANKA Page 34-43 4 ESG Page 44-45 4
Slide 16: 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 17: Q3 & 9M FY23 Consolidated Financial Highlights
Q3 & 9M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 18: Summary Consolidated Financials Q3 & 9M FY23
SUMMARY CONSOLIDATED FINANCIALS Q3 & 9M FY23 VS NORMALIZED Q3 & 9M FY22 FY22 Q3 FY22 Q3 FY23 Change YoY 9M FY22 9M FY23 Change YoY Restaurant Sales ₹ mn 17,154 5,055 5,939 17% 12,212 16,978 39% Adj. EBITDA ₹ mn * 1,615 737 738 0% 1,001 2,084 108% % 9.4% 14.6% 12.4% -220 bps 8.2% 12.3% 410 bps EBITDA
Slide 19: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT KFC India Pizza Hut India Sri Lanka RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT 325 250 263 274 209 219 46 89 95 114 10 KFC – 9 PH – 7 53 Dec'21 Mar'22 Dec'22 19 550* 579* 715* KFC – 15 KFC – 13 RESTAURANT ADDITION PH – 36 PH – 7 KFC – 6 PH – 3
Slide 20: Consolidated Financial Highlights Q3 & 9M FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 RESTAURANT SALES (₹ MN) ▲39% 17,154 17,154 16,978 ▲17% 12,212 5,939 5,055 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 INDIA Restaurant Sales grew by 24% INDIA Restaurant Sales grew by 47% GROSS MARGIN (%) 69.6% 69.6% 69.8% 69.4% 67.3% ▼210 bps 67.4% ▼240
Slide 21: Consolidated Financial Highlights: Restaurant and Adj. EBITDA
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 RESTAURANT EBITDA (₹ MN / %)# 21.9% 18.7% [20.2%]* 18.1% ▼210 18.9% bps* 20. 0% 18.7% [17.5%]* 17.8% ▲30 bps* 20. 0% 15. 0% 3,219 3,219 15. 0% 10. 0% 3,019 5.0 % 2,307 10. 0% 1,109 1,070 0.0 % 5.0 % -5.0% ▼4% -10.0% ▲31% 0.0 % FY22 Q3 FY22 Q3 FY23 FY22
Slide 22: Consolidated Financial Highlights: EBITDA and PAT
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 EBITDA (₹ MN / %) 25. 0% 20. 0% 19.5% ▲280 bps* 18.9% 23.2% 19.6% ▼190 bps* 19. 5% 20. 0% [21.5%]* 18.9% 3,248 3,248 3,313 19. 0% 15. 0% 2,212 18. 5% 10. 0% 18.1% 1,170 1,167 [16.7%]* 18. 0% 5.0 % 17. 5% = flat ▲50% 0.0 % 17. 0% FY22 Q3 FY22 Q3 FY23 FY2
Slide 23: Revenue & Adj. EBITDA Trend
CONSOLIDATED FINANCIAL HIGHLIGHTS REVENUE & ADJ. EBITDA TREND REVENUE (₹ MN) & ADJ. EBITDA (%) 14.6%* 12.9% 13.3% 12.3% 12.4% 11.1% 9.4%* 17,154 16,978 5.0% 13,284 3.8% 5,604 5,939 5,055 4,943 5,436 10,160 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA
Slide 24: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) FY22 Q3 FY22 Q3 FY23 YoY % 9M FY22 9M FY23 YoY % Restaurant Sales 17,154.46 5,055.18 5,938.76 17.5% 12,211.55 16,978.41 39.0% Other operating income 61.26 20.24 22.56 35.91 73.24 COGS 5,277.97 1,565.13 1,963.66 3,723.29 5,610.04 Gross Profi
Slide 25: KFC India Business Performance
KFC India Business Performance
Slide 26: KFC India Channel Sales Contribution
KFC INDIA Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 37% 36% 36% 44% 45% 20% 19% 19% 22% 23% 43% 45% 45% 34% 32% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 15
Slide 27: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION CELEBRATION BUCKET 16
Slide 28: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION OUTDOOR CAMPAIGN IN KEY CITIES 17
Slide 29: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION 18
Slide 30: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES AKOLA, MAHARASHTRA SAMASAVLI, VADODARA GUINDY, CHENNAI BHATINDA GREEN CITY DT, PUNJAB 19
Slide 31: KFC India Average Daily Sales
KFC INDIA Q3 & 9M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 31% 29% 3% SSSG 31% 70% 20% 144 136 138 130 130 129 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 263 250 325 263 250 325 Average daily sales is for all restaurants including new additions during the period 20
Slide 32: KFC India Restaurant Sales
KFC INDIA Q3 & 9M FY23 RESTAURANT SALES (₹ MN) Rest. 60 31 Rest. 24 60 47 62 Addition Addition ▲47% 10,349 ▲26% 10,349 10,838 7,384 3,810 3,031 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. 263 Rest. 263 250 325 Count 250 325 Count 21
Slide 33: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q3 & 9M FY23 GROSS MARGIN (%) 68.4% 68.0% 68.4% 68.5% 66.5% 66.5% ▼150 bps ▼200 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 22.5% [21.2%]* 20.2% 19.5% 19.7% [18.6%]* 19.5% 19.5% ▼100 bps* ▲90 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 # Restaurant EBITDA figure
Slide 34: KFC India ADS & Restaurant EBITDA Trend
KFC INDIA ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 21.2% * 20.3% 20.2% 19.5% 19.0% 18.7%* 17.9% 14.0% 13.2% 132 138 144 144 136 130 106 130 134 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives in
Slide 35: Pizza Hut India Business Performance
Pizza Hut India Business Performance
Slide 36: Pizza Hut India Channel Sales Contribution
PIZZA HUT INDIA Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 49% 50% 49% 57% 60% 16% 15% 16% 17% 17% 34% 35% 35% 26% 24% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 25
Slide 37: Pizza Hut India Branding & Promotion
PIZZA HUT INDIA BRANDING & PROMOTION FACEBOOK/INSTAGRAM SAAVN SHARECHAT YOUTUBE 26
Slide 38: Pizza Hut India Branding & Promotion
PIZZA HUT INDIA BRANDING & PROMOTION SOCIAL MEDIA CAMPAIGN 27
Slide 39: Pizza Hut India Branding & Promotions
PIZZA HUT INDIA BRANDING & PROMOTIONS 28
Slide 40: Pizza Hut India New Restaurant Launches
PIZZA HUT INDIA NEW RESTAURANT LAUNCHES BAVDHAN, PUNE WESTFORT THRISSUR, KERALA LAKEFRONT TELIBANDHA, RAIPUR KASARVADAVALI, THANE 29
Slide 41: Pizza Hut India Average Daily Sales
PIZZA HUT INDIA Q3 & 9M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 42% 22% -4% SSSG 42% 62% 18% 64 61 57 58 57 57 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 219 209 274 219 209 274 Average daily sales is for all restaurants including new additions during the period 30
Slide 42: Pizza Hut India Restaurant Sales
PIZZA HUT INDIA Q3 & 9M FY23 RESTAURANT SALES (₹ MN) Rest. Rest. 57 21 25 57 47 55 Addition Addition ▲49% 3,710 3,993 ▲20% 3,710 2,678 1,364 1,134 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Rest. 219 209 274 219 209 274 Count Count 31
Slide 43: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q3 & 9M FY23 GROSS MARGIN (%) 75.5% 75.4% 75.5% 75.8% 74.4% 74.8% ▼100 bps ▼100 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 17.3% [14.9%]* 14.1% 14.1% [11.5%]* 14.7% 13.4% 13.4% ▼80 bps* ▲320 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 # Restaurant EBITDA
Slide 44: Pizza Hut India ADS & Restaurant EBITDA Trend
PIZZA HUT INDIA ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 14.9%* 14.8% 15.1% 14.7% 14.1% 11.4%* 11.5% 7.3% 64 58 5.0% 61 55 61 64 57 48 58 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives in that p
Slide 45: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 46: Sri Lanka Channel Sales Contribution
SRI LANKA BUSINESS Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 36% 38% 56% 49% 61% 29% 35% 35% 31% 29% 35% 27% 13% 15% 10% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 35
Slide 47: Sri Lanka Business Branding & Promotions
SRI LANKA BUSINESS BRANDING & PROMOTIONS 36
Slide 48: Sri Lanka Business New Product Launches
SRI LANKA BUSINESS NEW PRODUCT LAUNCHES 37
Slide 49: Sri Lanka Pizza Hut New Restaurant Launches
SRI LANKA BUSINESS PIZZA HUT NEW RESTAURANT LAUNCHES PH AVISSAWELLA PH KIRINDIWELA PH WELIWERIYA PH KONDAVIL 38
Slide 50: Sri Lanka Taco Bell New Restaurant Launches
SRI LANKA BUSINESS TACO BELL NEW RESTAURANT LAUNCHES TACOBELL PILIYANDALA TACOBELL KURUNEGALA 39
Slide 51: Sri Lanka Average Daily Sales
SRI LANKA BUSINESS Q3 & 9M FY23 AVERAGE DAILY SALES (LKR ‘000) SSSG% 31% 44% 18% SSSG% 31% 40% 33% 336 336 327 298 LKR 298 290 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 95 89 114 95 89 114 AVERAGE DAILY SALES (INR ‘000) 121 108 108 108 INR 75 74 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23
Slide 52: Sri Lanka Restaurant Sales
SRI LANKA BUSINESS Q3 & 9M FY23 RESTAURANT SALES (LKR MN) Rest. Rest. 25 19 19 25 16 8 Addition Addition ▲65% 8,229 9,299 ▲39% 8,229 LKR 5,630 3,282 2,356 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Rest. 95 95 89 114 Count 89 114 Count RESTAURANT SALES (INR MN) 2,983 2,983 INR 2,066 2,049 ▼1% ▼
Slide 53: Sri Lanka Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q3 & 9M FY23 GROSS MARGIN (%) 66.2% 67.2% 66.2% 66.8% 57.3% 57.1% ▼990 bps ▼970 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 23.2% 22.6% [21.4%]* 26.4% [23.9%]* 23.2% 15.0% 14.6% ▼930 bps* ▼640 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Absolute Rest. E
Slide 54: Sri Lanka ADS & Restaurant EBITDA Trend
SRI LANKA BUSINESS ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 23.9% * 24.4% 22.0%* 19.5% 16.2% 15.5% 15.0% 15.0% 14.6% 121 108 112 87 90 74 75 73 75 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives
Slide 55: ESG
ESG First in the Indian QSR Industry to publish ESG Report aligned with GRI, SASB and BRSR standards GRI – Global Reporting Initiatives, SASB – Sustainability Accounting Standards Board, BRSR – Business Responsibility a Sustainability Report 44
Slide 56: ESG Materiality Assessment
ESG Materiality Assessment ✓ Diagnostic conducted to review our strategy, operating model, and culture in order to drive the ESG agenda ✓ Materiality assessment done with 165 internal and external stakeholders to identify our ESG priorities: 12 themes prioritized ✓ Granular ESG action plan being dev
Slide 57: Thank You
%718= 77OkIO THANK YOU
Sapphire Foods India — Q3 FY2023 Earnings Presentation on 6ix