Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q2 FY2023 Earnings Presentation
54 slides from Sapphire Foods India's earnings presentation, Nov 3, 2022
Slide 1: Outcome of Board Meeting letter to stock exchanges
Date: November 03, 2022 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 – 40001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, Subject: Outcome of the Meeting
Slide 2: Independent Auditor's Review Report on Consolidated Results
SRBC&COLLP 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 the SEBI (Listing Obligat
Slide 3: Limited review report for consolidated financial results
SRBC&COLLP Chartered Accountants . woe 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 4: Statement of Unaudited Consolidated Financial Results
Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India 8 SapphireFoods Sapphire Foods India Limited CIN: L55204MH2009PLC197005, Email: info@sapphirefoods.in, Website: www.sapphirefoods.in ‘Statement of Unaudited Consolidated financial results for the
Slide 5: Consolidated Balance Sheet as on September 30, 2022
9 SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L§5204MH2009PLC197005, Email : info@sapphirefoods.in, Website :www.sapphirefoods.in Consolidated Balance Sheet as on September 30, 2022 (Rs. in Mi
Slide 6: Consolidated Cash Flow Statement
S| SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC1970085, Email : info@sapphirefoods.in, Website :www.sapphirefoods.in Consolidated Cash Flow Statement for the half year ended Sep
Slide 7: Notes to Consolidated financial results
S) 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 November 03, 2022. These consolidated financial results have been prepared
Slide 8: Independent Auditor's Review Report on Standalone Results
SRBC&COLLP 29 Senapat bapat Marg Chartered Accountants Dadar (West) Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standafone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligation
Slide 9: Limited review report for standalone financial results
SRBC&COLLP Chartered Accountants Sapphire Foods India Limited Limited review report for standatone financial results 5, We have not audited or reviewed the figures for the financial results for the corresponding quarter and period ended September 30, 2021 as reported in these Unaudited Financial Res
Slide 10: Statement of Unaudited Standalone Financial Results
Sapphire Foods India Limited SapphireFoods Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC197005, Email: Statement of Unaudited Standalone Financial Results for the quarter and half year ended September 30, 2022 info@sapphi
Slide 11: Standalone Balance Sheet as on September 30, 2022
Sapphire Foods India Limited (~ c> LS SapphireFoods 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 Standalone Balance Sheet as on September 30, 2022 (Rs.
Slide 12: Standalone Cash Flow Statement
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 Standalone Cash Flow Statement for the half year ended September
Slide 13: Notes to Standalone financial results
Ss) SapphireFoods Notes to Standalone financial results: wo 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 November 03, 2022. These standalone financial results have been prepared in ac
Slide 14: Investor Release: highest ever Revenue in Q2 FY23
Investor Release Despite inflationary pressure, Sapphire Foods delivers highest ever Revenue in Q2 FY23 with 36% revenue growth and 68% EBITDA growth yoy Mumbai, 3rd November, 2022 – Sapphire Foods India Ltd, a franchisee of Yum Brands in the Indian subcontinent announces its Unaudited Financial Res
Slide 15: Investor Release: Pizza Hut, Sri Lanka and expansion
Pizza Hut had a strong quarter with SSSG of 23% and ADS growth over both corresponding & sequential quarter. While gross margins dropped by 110 bps we still delivered highest ever restaurant EBITDA of 15.1% up by 440 bps (vs normalised restaurant EBITDA* of 10.7% in Q2 FY22). Sri Lanka had SSSG of 3
Slide 16: Q2 and 6M FY23 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q6M Q2 AND FY22 Earnings FY23 Presentation EARNINGS PRESENTATION February NOV2022 2022
Slide 17: 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 18: Financial Highlights Q2 & 6M FY23
FINANCIAL HIGHLIGHTS Q2 & 6M FY23 ➢ In Q2 FY23, we delivered robust performance with revenue of Rs. 5604 Mn (highest ever), EBITDA of Rs. 1032 Mn at 18.4% (up 350 bps yoy) and Adj. EBITDA of Rs. 624 Mn at 11.1% (up 490 bps). PAT stood at Rs. 269 Mn, 4.8% of revenue (up 600 bps yoy). ➢ India restaura
Slide 19: Table of Contents
TABLE OF CONTENTS 1 THE SAPPHIRE STORY Page 5 2 Q2 & 6M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS Page 6-13 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 14-22 ▪ PIZZA HUT INDIA Page 23-30 ▪ SRI LANKA Page 31-38 4
Slide 20: 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 21: Consolidated Financial Highlights
Q2 & 6M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 22: Summary Consolidated Financials
SUMMARY CONSOLIDATED FINANCIALS Q2 & 6M FY23 FY22 Q2 FY22 Q2 FY23 Change YoY 6M FY22 6M FY23 Change YoY Restaurant Sales ₹ mn 17,154 4,130 5,604 36% 7,156 11,040 54% Adj. EBITDA ₹ mn 1,808 256 624 144% 350 1,346 285% Adj. EBITDA % 10.5% 6.2% 11.1% 490 bps 4.9% 12.2% 730 bps EBITDA ₹ mn 3,248 614 1,0
Slide 23: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT KFC India Pizza Hut India Sri Lanka RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT 301 263 219 219 249 188 42 10 73 95 106 KFC – 7 PH – 7 51 Sep'21 Mar'22 Sep'22 16 482* 579* 658* KFC – 14 KFC – 11 RESTAURANT ADDITION PH – 28 PH – 5 KFC – 5 PH – 2
Slide 24: Consolidated Financial Highlights: Sales and Gross Margin
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2 & 6M FY23 RESTAURANT SALES (₹ MN) ▲54% 17,154 17,154 ▲36% 11,040 7,156 5,604 4,130 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 GROSS MARGIN (%) 69.6% 69.8% 69.6% 70.1% 67.4% 66.7% ▼310 bps ▼270 bps FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 9
Slide 25: Consolidated Financial Highlights: Restaurant and Adj. EBITDA
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2 & 6M FY23 RESTAURANT EBITDA (₹ MN / %)# 19.8% [17.2%]* 18.7% 18.7% 17.6% ▲80 bps 16.8% [15.5%]* 20. 0% 20. 0% 16.8% ▼300 bps [▲210 bps]* 3,219 [▼50 bps]* 15. 0% 3,219 15. 0% 10. 0% 1,944 10. 0% 1,198 817 940 5.0 % 5.0 % ▲15% 0.0 % ▲62% 0.0 % FY22 Q2 FY22 Q2 FY23
Slide 26: Consolidated Financial Highlights: EBITDA and PAT
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2 & 6M FY23 EBITDA (₹ MN / %) 18.9% 18.4% ▲350 bps 20. 0% 25. 0% [▲610 bps]* 19.4%▲480 bps 18. 0% 18.9% [▲610 bps]* 16. 0% 20. 0% 14.9% [12.3%]* 3,248 3,248 14. 0% 12. 0% 15. 0% 10. 0% 14.6% [13.3%]* 8.0 % 2,146 10. 0% 1,041 6.0 % 1,032 614 4.0 % 5.0 % 2.0 % ▲68% 0
Slide 27: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) FY22 Q2 FY22 Q2 FY23 YoY % 6M FY22 6M FY23 YoY % Restaurant Sales 17,154.46 4,129.77 5,604.12 35.7% 7,156.37 11,039.65 54.3% Other operating income 61.26 11.77 23.54 15.67 50.68 COGS 5,277.97 1,258.00 1,890.22 2,158.16 3,646.38 Gross Profit
Slide 28: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs mn) As on 30.9.22 As on 31.3.22 Total Assets 23,539.47 21,639.25 Fixed assets other than Goodwill 7,457.12 6,354.14 Goodwill 1,621.59 1,621.59 Right of use assets 7,150.61 6,248.57 Inventories 973.47 651.64 Trade receivables 152.55 140.71 Cash and bank b
Slide 29: KFC India Business Performance
KFC India Business Performance
Slide 30: KFC India Channel Sales Contribution
KFC INDIA Q2 & 6M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 36% 35% 44% 43% 51% 20% 20% 22% 24% 25% 44% 45% 34% 33% 24% FY22 Q2 FY22 Q2 FY23 6M FY22 6M FY23 15
Slide 31: KFC India New Product Launch
KFC INDIA NEW PRODUCT LAUNCH 16
Slide 32: KFC India Branding & Promotions
KFC INDIA BRANDING & PROMOTIONS 17
Slide 33: KFC India Digital Activation
KFC INDIA DIGITAL ACTIVATION 18
Slide 34: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES COLABA, MUMBAI FARIDKOT, PUNJAB JALANDHAR HAVELI, PUNJAB JALNA ROAD, AURANGABAD 19
Slide 35: KFC India Average Daily Sales
KFC INDIA Q2 & 6M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 31% 8% 15% SSSG 31% 12% 41% 130 134 134 130 139 120 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Average daily sales is for all restaurants including new additions during the period 20
Slide 36: KFC India Restaurant Sales
KFC INDIA Q2 & 6M FY23 RESTAURANT SALES (₹ MN) Rest. Rest. 60 11 20 60 16 38 Addition Addition ▲61% 10,349 10,349 ▲36% 7,028 3,491 4,352 2,565 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Rest. Rest. 263 219 301 Count 263 219 301 Count 21
Slide 37: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q2 & 6M FY23 GROSS MARGIN (%) 68.7% 68.9% 68.4% 68.4% 66.4% 65.6% ▼310 bps ▼250 bps FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 RESTAURANT EBITDA# (%) 20.6% [18.7%]* 19.5% 19.5% 19.1% ▲140 bps 17.9% 17.7% [16.8%]* [▲230 bps]* ▼270 bps [▼80 bps]* FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 # Re
Slide 38: Pizza Hut India Business Performance
Pizza Hut India Business Performance
Slide 39: Pizza Hut India Channel Sales Contribution
PIZZA HUT INDIA Q2 & 6M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 50% 49% 57% 59% 67% 15% 16% 17% 18% 17% 35% 35% 26% 23% 16% FY22 Q2 FY22 Q2 FY23 6M FY22 6M FY23 24
Slide 40: Pizza Hut India Branding & Promotions
PIZZA HUT INDIA BRANDING & PROMOTIONS BRANDING ON TRAIN HOARDINGS IN CITIES BUS SHELTER – GUJARAT, KARNATAKA, MUMBAI 25
Slide 41: Pizza Hut India Digital Activation
PIZZA HUT INDIA DIGITAL ACTIVATION FACEBOOK/INSTAGRAM PAYTM SAAVN HOTSTAR 26
Slide 42: Pizza Hut India New Restaurant Launches
PIZZA HUT INDIA NEW RESTAURANT LAUNCHES ALWAL, HYDERABAD GANDHIDHAM, GUJARAT AVADI, CHENNAI DIGHI, PUNE 27
Slide 43: Pizza Hut India Average Daily Sales
PIZZA HUT INDIA Q2 & 6M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 42% 64% 23% SSSG 42% 101% 34% 64 62 57 57 57 53 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Average daily sales is for all restaurants including new additions during the period 28
Slide 44: Pizza Hut India Restaurant Sales
PIZZA HUT INDIA Q2 & 6M FY23 RESTAURANT SALES (₹ MN) Rest. Rest. 57 17 14 57 26 30 Addition Addition 3,710 3,710 ▲70% ▲60% 2,629 1,410 1,544 883 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Rest. Rest. 219 188 249 219 188 249 Count Count 29
Slide 45: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q2 & 6M FY23 GROSS MARGIN (%) 75.8% 76.1% 75.5% 75.5% 74.7% 75.0% ▼110 bps ▼110 bps FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 RESTAURANT EBITDA# (%) 16.3% [10.7%]* 15.1% 14.9% 13.4% 13.4% 11.8% [9.0%]* ▼120 bps ▲310 bps [▲440 bps]* [▲590 bps]* FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY2
Slide 46: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 47: Sri Lanka Channel Sales Contribution
SRI LANKA BUSINESS Q2 & 6M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 34% 40% 56% 69% 69% 39% 35% 31% 26% 25% 27% 25% 13% 5% 6% FY22 Q2 FY22 Q2 FY23 6M FY22 6M FY23 32
Slide 48: Sri Lanka Business Branding & Promotions
SRI LANKA BUSINESS BRANDING & PROMOTIONS 33
Slide 49: Sri Lanka Business New Product Launches
SRI LANKA BUSINESS NEW PRODUCT LAUNCHES 34
Slide 50: Sri Lanka New Restaurant Launches
SRI LANKA BUSINESS NEW RESTAURANT LAUNCHES TACO BELL, KIRITBATHGODA PIZAA HUT, MATUGAMA PIZZA HUT, HANWELLA PIZZA HUT, TANGALLE PIZZA HUT, HORANA 2 PIZZA HUT, AVISAWELLA 35
Slide 51: Sri Lanka Average Daily Sales
SRI LANKA BUSINESS Q2 & 6M FY23 AVERAGE DAILY SALES (LKR ‘000) SSSG% 31% 27% 37% SSSG% 31% 39% 44% 335 334 298 298 286 268 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 AVERAGE DAILY SALES (INR ‘000) 108 105 108 98 73 74 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Average daily sales is for all restaurant
Slide 52: Sri Lanka Restaurant Sales
SRI LANKA BUSINESS Q2 & 6M FY23 RESTAURANT SALES (LKR MN) Rest. Rest. 25 3 11 25 4 8 Addition Addition 8,229 8,229 ▲84% ▲76% 6,014 3,121 3,274 1,772 FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 Rest. Rest. 95 95 73 106 73 106 Count Count RESTAURANT SALES (INR MN) 2,983 2,983 ▲9% ▲2% 1,319 1,208 653 669
Slide 53: Sri Lanka Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q2 & 6M FY23 GROSS MARGIN (%) 66.2% 66.0% 66.2% 66.4% 55.4% 57.1% ▼1060 bps ▼930 bps FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6M FY23 RESTAURANT EBITDA# (%) 23.2% 23.2% 21.7% [20.5%]* 20.0% [19.6%]* ▼670 bps 15.0% [▼550 bps]* 15.2% ▼480 bps [▼440 bps]* FY22 Q2 FY22 Q2 FY23 FY22 6M FY22 6
Slide 54: Thank You
THANK YOU
Sapphire Foods India — Q2 FY2023 Earnings Presentation on 6ix