Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (August 2023)
25 slides from Sapphire Foods India's investor presentation, August 2023
Slide 1: Sapphire Foods India Corporate Presentation Aug'23
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – AUG’23 1
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: 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 5 MANAGEMENT, BOARD & SHAREHOLDING PATTERN Page 22-24
Slide 4: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 778 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (3) Sri Lanka’s Largest International QSR chain (1) 360 KFC Restaurants (2) 409 Pizza Hut Restaurants (2) 9 Taco Bell Restaurants (2) ₹ 6,526 MN Q1 FY24 Re
Slide 5: Journey of Sapphire Foods: Built a Platform of 778 Outlets
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 778 OUTLETS (1) 358 SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 302 Restaurants Cities 94 114 71 52 50 12 INDIA SRI LANKA KFC – 9 6 PH – 7 62 20 KFC – 17 KFC – 14 PH – 37 PH – 10 KFC – 6 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of PH – 4
Slide 6: 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 7: Financial Overview
FINANCIAL OVERVIEW
Slide 8: Sapphire Foods: Journey Post Listing
SAPPHIRE FOODS: JOURNEY POST LISTING 2-Year CAGR 29% No. of 30% 33% 743 Restaurants 579 437 FY21 FY22 FY23 32% Restaurant 69% 22,571 49% 17,154 Sales ₹ Mn 10,160 FY21 FY22 FY23 3.8% 9.4% 11.7% Adj. 64% 163% EBITDA 2,647 323% ₹ Mn / % 382 1,615 FY21 FY22* FY23 -8.3% 2.7% 6.2% 207% Adj. PAT 1,402 457
Slide 9: Summary Consolidated Financials Q1 FY24
SUMMARY CONSOLIDATED FINANCIALS Q1 FY24 Particulars FY23 Q1 FY23 Q1 FY24 Change YoY Restaurant Sales ₹ mn 22,571 5,436 6,526 20% Adj. EBITDA ₹ mn 2,647 722 772 7% % 11.7% 13.3% 11.8% -150 bps EBITDA ₹ mn 4,343 1,114 1,224 10% % 19.2% 20.5% 18.8% -170 bps PBT ₹ mn 1,084 356 336 -6% % 4.8% 6.6% 5.2% -
Slide 10: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Gross Restaurant 154 170 39 43 57 31 39 Additions 743 715 743 778 616 658 579 31-Mar-22 31-Mar-23 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 Restaurant 12 6 2 1 0 3 4 Closures RESTAURANT SALES 32% increase (INR mm) 22,571 20% Increase on
Slide 11: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.6% 68.7% 50 67.6% 68.2% 67.3% 68.1% 66.7% bps YoY FY22 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 RESTAURANT EBITDA (₹ MN / %)# 17.4% 17.6% * 130 bps 18.5% 16.8% 18.1% 16.2% 17.2% YoY 3,929 3,025 ▲12% 1,004 940 1,070 910 1,128 YOY FY22 FY23 Q1FY23 Q2FY23 Q3
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 150 10.1% 11.8% bps 9.4% * 13.3% 11.1% 12.4% YoY 2,647 1,614 ▲7% 722 624 738 563 772 YOY FY22 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 EBITDA (₹ MN / %) 19.2% 17.8% * 170 20.5% 18.4% 19.6% 18.4% 18.8% bps 4,343 YoY 3,054 ▲10% 1,114 1,032 1,167
Slide 13: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 14: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Value Chicken Category Craveable Taste - Entry value innovation: + Relevance - “Let’s KFC” communication + ‒ Innovation: Chizza, Chicken Popcorn with Maggi, Popcorn Nachos, Chicken Rolls + Chicken Rolls - Abundant Value: Bucket Options campaign - Range of snackers
Slide 15: 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 JUN 30, 2023 / FOR FY21 / FOR FY22 /FOR FY23 /FOR Q1FY24 Total Restaurant Count 203 263 341 358 Average Daily Sales per Restaurant (INR‘000s) 106 130 135 138 Restaurant Related 21% Revenue (in
Slide 16: Pizza Hut Brand Priorities
PIZZA HUT BRAND PRIORITIES Build Top-of-Mind Taste Leadership in Value Pizza category + Awareness - Enhance marketing investments: + - Innovation: 10 New Pan Pizzas, 2 new Pastas, Keema Garlic + - Entry level value: Flavor Fun Pizzas - Attractive Meal options TV campaign Bread Operational Improve Fr
Slide 17: 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 JUN 30, 2023 /FOR FY21 / FOR FY22 / FOR FY23 / FOR Q1FY24 Total Restaurant Count 162 219 286 302 Average Daily Sales per Restaurant (INR‘000s) 48 57 58 52 Restaurant Related 12% Revenue (
Slide 18: 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 JUN 30, 2023 / FOR FY21 / FOR FY22 / FOR FY23 / FOR Q1 FY24 Total Restaurant Count 70 95 114 114 Average Daily Sales per 94 108 72 81 Restaurant (INR‘000s) YoY Restaurant Related 52%
Slide 19: 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 FY19 FY23 Average Daily Sales per Restaurant 125 135 61 58 (in ₹ ’000) FY19
Slide 20: 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 21: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 22: Right People in Key Seats: Management Team
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Ashu Khanna Niraj Patil Puneet Bhatia Deepak Taluja Vikrant Vohra Vijay Jain Nandita Bapat Amar Patel Head Supply Head Legal and Head Business CEO – KFC CEO – Pizza Hut CFO Head - Projects Chief Tech Officer Chain Lia
Slide 23: 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 24: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 30th Jun 2023) % Holding Promoters & Promoter Group 44.9 Foreign Portfolio Investors / Non-Resident Indians 19.2 Domestic 34.9 Mutual Funds 22.6 Insurance Companies 5.1 Alternate Investment Funds 1.9 Resident Individuals 5.3 Others 1.0 Total 100.0 Sou
Slide 25: Thank You
THANK YOU Company: Investor Relations Partner: Sapphire Foods India Limited Orient Capital (a division of Link Group) CIN: L55204MH2009PLC197005 Mr. Nachiket Kale Mr. Rahul Kapoor Email ID: nachiket.kale@linkintime.co.in Email ID: rahul.kapoor@sapphirefoods.in +91 9920940808 www.sapphirefoods.in www
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