Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q2 FY23 Earnings Presentation
39 slides from Sapphire Foods India's earnings presentation, November 2022
Slide 1: Sapphire Foods India Limited 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 2: 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 3: 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 4: 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 5: 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 6: Consolidated Financial Highlights
Q2 & 6M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 7: 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 8: 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 9: Consolidated Financial Highlights: Restaurant 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 10: Consolidated Financial Highlights: Restaurant EBITDA 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 11: 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 12: 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 13: 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 14: KFC India Business Performance
KFC India Business Performance
Slide 15: 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 16: KFC India New Product Launch
KFC INDIA NEW PRODUCT LAUNCH 16
Slide 17: KFC India Branding & Promotions
KFC INDIA BRANDING & PROMOTIONS 17
Slide 18: KFC India Digital Activation
KFC INDIA DIGITAL ACTIVATION 18
Slide 19: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES COLABA, MUMBAI FARIDKOT, PUNJAB JALANDHAR HAVELI, PUNJAB JALNA ROAD, AURANGABAD 19
Slide 20: 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 21: 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 22: 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 23: Pizza Hut India Business Performance
Pizza Hut India Business Performance
Slide 24: 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 25: Pizza Hut India Branding & Promotions
PIZZA HUT INDIA BRANDING & PROMOTIONS BRANDING ON TRAIN HOARDINGS IN CITIES BUS SHELTER – GUJARAT, KARNATAKA, MUMBAI 25
Slide 26: Pizza Hut India Digital Activation
PIZZA HUT INDIA DIGITAL ACTIVATION FACEBOOK/INSTAGRAM PAYTM SAAVN HOTSTAR 26
Slide 27: Pizza Hut India New Restaurant Launches
PIZZA HUT INDIA NEW RESTAURANT LAUNCHES ALWAL, HYDERABAD GANDHIDHAM, GUJARAT AVADI, CHENNAI DIGHI, PUNE 27
Slide 28: 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 29: 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 30: 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 31: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 32: Sri Lanka Business 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 33: Sri Lanka Business Branding & Promotions
SRI LANKA BUSINESS BRANDING & PROMOTIONS 33
Slide 34: Sri Lanka Business New Product Launches
SRI LANKA BUSINESS NEW PRODUCT LAUNCHES 34
Slide 35: Sri Lanka Business 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 36: Sri Lanka Business 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 37: Sri Lanka Business 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 38: Sri Lanka Business 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 39: Thank You
THANK YOU