Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q2 FY25 Earnings Presentation
49 slides from Sapphire Foods India's earnings presentation, Oct 28, 2024
Slide 1: Exchange filing cover letter
Date: 28th October 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: Press (Investor) Rele
Slide 2: Investor Release: 8% revenue growth at 16.6% EBITDA
Investor Release Sapphire Foods delivers 8% revenue growth at 16.6% EBITDA ➢ Our Q2 FY25 Consol Restaurant Sales (₹ 6,940 Mn) grew by 8% with EBITDA (₹1,152 Mn) at 16.6%. Demand conditions continued to be muted. ➢ In Q2 FY25 we added 19 KFC, 3 Pizza Hut in India & 1 Pizza Hut in Sri Lanka. Sapphire
Slide 3: Pizza Hut, Sri Lanka and Maldives update; About Sapphire Foods
➢ After seeing a 17% sequential QoQ upliftment in Average Daily Sales (ADS) in Q1, Pizza Hut ADS has remained stable in Q2. Restaurant Sales increased by 3% YoY (SSSG - 3%). Our Rest. EBITDA is at 4.1% post additional marketing investments. In line with brand revival strategy, we increased marketing
Slide 4: Q2 and 6M FY25 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q6M Q2 AND FY22 Earnings FY25 Presentation BUSINESS PERFORMANCE February 2022 OCT’2024
Slide 5: 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 6: Table of Contents
TABLE OF CONTENTS 1 THE SAPPHIRE STORY Page 04 2 Q2 AND 6M FY25 FINANCIAL HIGHLIGHTS Page 05-17 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 18-26 ▪ PIZZA HUT INDIA Page 27-36 ▪ SRI LANKA Page 37-45 3
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: Q2 and 6M FY25 Consolidated Financial Highlights
Q2 AND 6M FY25 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 9: Key Highlights Q2 FY25
KEY HIGHLIGHTS Q2 FY25 ➢ Our Q2 FY25 Consol Restaurant Sales (₹ 6,940 Mn) grew by 8% with EBITDA (₹1,152 Mn) at 16.6%. Demand conditions continued to be muted. ➢ In Q2 FY25 we added 19 KFC, 3 Pizza Hut in India & 1 Pizza Hut in Sri Lanka. Sapphire Foods total restaurant count is 909 as on 30th Sep 2
Slide 10: Summary Consolidated Financials Q2 & 6M FY25
SUMMARY CONSOLIDATED FINANCIALS Q2 & 6M FY25 Particulars Q2 FY25 Q2 FY24 Change YoY 6M FY25 6M FY24 Change YoY FY24 Restaurant Sales ₹ mn 6,940 6,414 8% 14,105 12,939 9% 25,880 Adj. EBITDA ₹ mn 590 678 -13% 1,298 1,450 -10% 2,717 % 8.5% 10.6% -210 bps 9.2% 11.2% -200 bps 10.5% EBITDA ₹ mn 1,152 1,16
Slide 11: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT KFC India Pizza Hut India Sri Lanka + Maldives RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT 429 461 381 311 319 323 63 16 122 124 125 KFC––10 KFC 6 PH––67 67 PH Sep'23 Mar'24 Sep'24 28 814 872 909 KFC – 23 KFC – 16 RESTAURANT ADDITION PH – 31 PH
Slide 12: Financial Highlights: Restaurant Sales
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 CONSOLIDATED RESTAURANT SALES (₹ MN) 25,880 ▲8% 6,940 ▲9% 6,414 12,939 14,105 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 INDIA RESTAURANT SALES (₹ MN) 22,342 ▲7% ▲8% 5,495 5,903 12,070 11,143 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 9
Slide 13: Financial Highlights: Gross Margin
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 CONSOLIDATED GROSS MARGIN (%) 68.9% 69.0% ▲10 bps 68.9% 68.8% 68.9% ▲10 bps Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 INDIA GROSS MARGIN (%) 0.7 2 ▲35 bps 0.7 2 35 70.2% ▲30 bps 0.7 1 ▲30 bps 70.1% ▲30 bps 0.7 1 30 69.9% 69.9% 69.8% 0.7 0 ▲25 bps 0.7 0 25 0.6 9 ▲20 bps 0
Slide 14: Financial Highlights: Restaurant EBITDA
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 CONSOLIDATED RESTAURANT EBITDA (₹ MN / %)# 21. 0% 4,092 19. 0% 2,5 00.00 16.1% 19. 0% 16.7% 17. 0% 13.7%▼240 bps 14.4% ▼230 bps 2,0 00.00 2,164 14. 0% 15. 0% 1,5 00.00 15.8% 2,038 1,037 954 9.0 % 13. 0% 1,0 00.00 11. 0% 4.0 % 500 .00 ▼8% ▼6%9.0 % -1.0% 0.0 0 7.0 % -
Slide 15: Financial Highlights: Adj. EBITDA and EBITDA
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 ADJ. EBITDA (₹ MN / %)# 1,9 97 20. 0% 18. 0% 16. 0% 1,4 97 14. 0% 2,717 10.6% 12. 0% 11.2% 997 8.5% 10. 0% 9.2% 678 10.5% 1,450 ▼200 bps 590 ▼210 bps 1,298 8.0 % 6.0 % 497 4.0 % ▼13% ▼10% 2.0 % -3 0.0 % Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 EBITDA (₹ MN / %) 1,997 18
Slide 16: Financial Highlights: Profit Before Tax
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 Adj. PROFIT BEFORE TAX (₹ MN / %)# 1,057 4.7% 5.5% 299 2.1% ▼ 260 bps 718 143 4.1% 382 ▼ 280 bps 2.7% ▼ 52% ▼ 47% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 PROFIT BEFORE TAX (₹ MN / %) 3.3% 699 4.3% 214 550 2.7% 0.8% ▼ 250 bps 1.2%▼ 310 bps 53 171 ▼ 75% ▼69% Q2 FY24 Q2 F
Slide 17: Financial Highlights: Profit After Tax
FINANCIAL HIGHLIGHTS Q2 & 6M FY25 Adj. PROFIT AFTER TAX (₹ MN / %)# 786 3.6% 229 4.0 % 3.0 % 2.0 % 526 599 0.1% ▼ 330 bps 1.0 % 4.1% 3.9% 0.0 % -1.0% 3.0% 1.3% ▼ 280 bps 5 -2.0% 177 -3.0% ▼ 98% -4.0% ▼ 66% -5.0% Q2 FY24 Q2 FY25 FY24 6M FY24 AOP 6M FY25 6M FY25 PROFIT AFTER TAX (₹ MN / %) 520 3.1% 20
Slide 18: Restaurant Sales & Adj. EBITDA Trend
FINANCIAL HIGHLIGHTS RESTAURANT SALES & ADJ. EBITDA TREND REST. SALES (₹ MN) & ADJ. EBITDA (%) YoY 69% 32% 13% Change % 11.7% 10.6% 10.9% 10.5% 9.9% 9.4% * 8.6% 8.5% 22,571 25,880 7,165 6,940 6,414 6,643 6,297 3.8% 17,154 10,160 FY 21 FY 22 FY23 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 * Adj. EB
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) Q2 FY25 Q2 FY24 YoY % 6M FY25 6M FY24 YoY % FY24 Restaurant Sales 6,940.11 6,413.87 8% 14,105.25 12,939.43 9% 25,879.61 Other operating income 16.86 12.53 34.61 30.81 63.18 COGS 2,170.58 2,009.86 4,426.67 4,070.80 8,109.06 Gross Profit 4,78
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs mn) As on 30.9.25 As on 31.3.24 Total Assets 29,228.36 28,400.81 Fixed assets other than Goodwill 11,082.61 11,017.65 Goodwill 1,621.59 1,621.59 Right of use assets 10,049.77 9,818.21 Inventories 894.85 968.82 Trade receivables 322.38 343.84 Cash and ban
Slide 21: KFC India Business Performance
KFC India Business Performance
Slide 22: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Chicken Category Craveable Taste Value + Relevance - Build lunch day part occasions + ‒ Launch of Chicken Roll sauce variants (Classic, Korean, Thai, Tandoori, Spicy) + - Address critical price points of ₹99/-, ₹149/- & ₹ 399/- through snacking and meal through var
Slide 23: KFC Brand Priorities: Fried Chicken Category
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value 20
Slide 24: KFC Brand Priorities: Frictionless Customer Experience
KFC BRAND PRIORITIES Frictionless customer experience | Digital Total App downloads – 44.5 Mn+ Digital KIOSKs implemented at 179 Monthly Active Users – 1.9 Mn Restaurants 21
Slide 25: KFC Brand Priorities: Improving Accessibility
KFC BRAND PRIORITIES Improving Accessibility – On track to double Restaurant Count in ~3 years (base Dec’21 count) SRIPERAMBDUR, TAMIL NADU KALLAKURUCHI, TAMIL NADU DINA NAGAR, PUNJAB ULUNDURPET, CHENNAI 22
Slide 26: KFC India Channel Sales Contribution
KFC INDIA Q2 & 6M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 38% 42% 38% 37% 41% 19% 20% 19% 21% 21% 43% 42% 44% 38% 37% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 23
Slide 27: KFC India Q2 & 6M FY25
KFC INDIA Q2 & 6M FY25 AVERAGE DAILY SALES (₹ ‘000) SSSG% 0% -8% SSSG% -1% 0% -7% 125 125 131 111 116 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 RESTAURANT SALES (₹ MN) Rest. 23 19 88 40 32 Addition 11 ,99 9.00 9,9 99 .00 7,9 99 .00 ▲9% 17,157 ▲10% 4,527 5,9 99 .00 4,165 3,9 99 .00 8,451 9,297 1,9 99 .00
Slide 28: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q2 & 6M FY25 GROSS MARGIN % 68.3% ▲40 bps 68.2% 68.2% ▲20 bps 67.9% 68.0% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 RESTAURANT EBITDA (%)# 19.2% 19.7% 20.0% 17.7% ▼230 bps 16.5% ▼270 bps Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 # Restaurant EBITDA figures are Pre-IND AS 116. 25
Slide 29: KFC India Restaurant Sales & EBITDA Trend
KFC INDIA RESTAURANT SALES & EBITDA TREND Rest. SALES (₹MN) & Rest. EBITDA % YoY 75% 40% 18% Change % 20.1% 19.4% 19.7% 19.2% 18.8% 18.7% * 18.7% 16.5% 14.0% 17,157 4,770 4,527 14,529 4,165 4,421 4,285 10,349 5,897 FY 21 FY 22 FY23 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 ADS (₹ 000)# 106 130 13
Slide 30: Pizza Hut India Business Performance
Pizza Hut India – Business Performance
Slide 31: Update on Pizza Hut Action Plan
UPDATE ON PIZZA HUT ACTION PLAN Actionable Status Comment A. Build Brand: Launched Melts, Thin Crust Pizza and revamped Pasta range in Mar-24 - Product Innovation Launched Momo Mia Pizza & Appetizers in Oct-24 - Enhanced Marketing Doubled spends on TV, OTT, Digital & OOH segments vs last year Invest
Slide 32: Pizza Hut Brand Priorities: Product Innovation
PIZZA HUT BRAND PRIORITIES Build Brand Salience | Product Innovation 29
Slide 33: Pizza Hut Brand Priorities: Marketing Investments
PIZZA HUT BRAND PRIORITIES Build Brand Salience | Marketing Investments 30
Slide 34: Pizza Hut Brand Priorities: New Restaurant Launches
PIZZA HUT BRAND PRIORITIES New Restaurant Launches LULU MALL,CALICUT VIP ROAD, SURAT SAVEDI, AHMADNAGAR NANDIDURGA, BANGALORE 31
Slide 35: Pizza Hut Brand Priorities: Digital, Operational Excellence
PIZZA HUT BRAND PRIORITIES Digital | Operational Excellence Total App Downloads – 11.4 Mn+ Self Ordering QR Code 15% of Dine In Mix Monthly Active Users – 1.1 Mn 32
Slide 36: Pizza Hut India Channel Sales Contribution
PIZZA HUT INDIA Q2 & 6M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 49% 52% 49% 49% 51% 16% 15% 16% 16% 15% 35% 33% 35% 35% 34% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 33
Slide 37: Pizza Hut India Q2 & 6M FY25
PIZZA HUT INDIA Q2 & 6M FY25 AVERAGE DAILY SALES (₹ ‘000) SSSG% -20% -3% SSSG% -16% -15% -5% 46 50 48 48 47 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 RESTAURANT SALES (₹ MN) Rest. 3 9 33 25 4 Addition ▲3% ▲3% 1,330 1,376 5,185 2,692 2,772 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 Rest. 311 323 Count 319 311 3
Slide 38: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q2 & 6M FY25 GROSS MARGIN (%) ▲70 bps ▲40 bps 76.1% 76.5% 76.3% 75.6% 75.6% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 0.25 ▲0 bps RESTAURANT EBITDA# (%) 0.20 ▼100 bps 0.15 0.10 7.6% 8.3% 4.1% ▼350 bps ▼400 bps 4.9% 4.3% ▼200 bps 0.05 0.00 ▼300 bps -0.05 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY2
Slide 39: Pizza Hut India Restaurant Sales & EBITDA Trend
PIZZA HUT INDIA RESTAURANT SALES & EBITDA TREND Rest. SALES (₹MN) & Rest. EBITDA % 15 .0% YoY 67% 41% -1% Change % 13.3% 11.4% * 10 .0% 7.6% 4.6% 4.6% 4.1% 5.0 % 5.0% 4.9% 0.0 % -2.7% 1,330 1,396 1,376 1,305 5,214 5,185 1,188 -5.0 % 3,710 -10 .0% 2,218 -15 .0% FY 21 FY 22 FY23 FY24 Q2 FY24 Q3 FY24 Q
Slide 40: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 41: Sri Lanka Business: New Launches
SRI LANKA BUSINESS NEW LAUNCHES 38
Slide 42: Sri Lanka Business: Branding and Marketing
SRI LANKA BUSINESS BRANDING AND MARKETING 39
Slide 43: Sri Lanka Business: New Restaurants
SRI LANKA BUSINESS NEW RESTAURANTS JAFFNA CARGILLS SQUARE 40
Slide 44: Sri Lanka Channel Sales Contribution
SRI LANKA BUSINESS Q2 & 6M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 36% 38% 37% 37% 38% 34% 35% 35% 34% 35% 30% 27% 28% 29% 27% Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 41
Slide 45: Sri Lanka Business Q2 & 6M FY25
SRI LANKA BUSINESS Q2 & 6M FY25 AVERAGE DAILY SALES (LKR ‘000) SSSG% 1% 9% SSSG% 2% 1% 10% 335 332 318 305 311 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 AVERAGE DAILY SALES (INR ‘000) 92 93 79 81 81 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 Rest. 118 121 Rest. 120 121 Count Count 118 Average daily sales is fo
Slide 46: Sri Lanka Restaurant Sales
SRI LANKA BUSINESS Q2 & 6M FY25 RESTAURANT SALES (LKR MN) Rest. Rest. 4 1 6 4 1 Addition Addition ▲10% 3,707 13,123 3,379 ▲11% 7,256 6,524 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 Rest. Rest. Count 118 121 Count 120 118 121 RESTAURANT SALES (INR MN) ▲19% 3,397 ▲19% 1,024 864 2,003 1,689 Q2 FY24 Q2 FY25
Slide 47: Sri Lanka Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q2 & 6M FY25 GROSS MARGIN % 62.2% 61.6% 61.1% 61.4% 60.8% ▼110 bps ▼60 bps Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 RESTAURANT EBITDA (%)# 0.1 9 14.4% 0.1 8 14.2% 0.1 7 0.1 6 15.3% 15.5% 0.1 5 13.7% 0.1 4 0.1 3 0.1 2 0.1 1 ▲20 bps ▲20 bps 0.1 0 Q2 FY24 Q2 FY25 FY24 6M FY24 6M FY25 Abs
Slide 48: Sri Lanka Restaurant Sales & EBITDA Trend
SRI LANKA BUSINESS RESTAURANT SALES & EBITDA TREND Rest. SALES (LKR MN) & Rest. EBITDA % YoY 60% 48% Change % 22.0%* 19.6% 15.3% 15.5% 14.2% 14.8% 13.2% 13.7% 12.3% 3,707 3,514 3,549 13,123 3,379 12,166 3,085 8,229 5,145 FY 21 FY 22 FY23 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 ADS (LKR 236 298
Slide 49: Thank You
THANK YOU