Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (February 2024)
27 slides from Sapphire Foods India's investor presentation, Feb 9, 2024
Slide 1: Exchange filing cover letter for corporate presentation
Date: 9th February 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: Corporate Presentatio
Slide 2: Corporate Presentation February 2024
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – FEB’24 1
Slide 3: 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 4: 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 6 ESG Page 22 7 MANAGEMENT, BOARD & SHAREHOLDING PATTE
Slide 5: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 850 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (3) Sri Lanka’s Largest International QSR chain (1) 408 KFC Restaurants (2) 433 Pizza Hut Restaurants (2) 9 Taco Bell Restaurants (2) ₹ 6,643 MN Q3 FY24 Re
Slide 6: Journey of Sapphire Foods
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 850 OUTLETS (1) SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 406 319 Restaurants Cities 98 121 79 52 57 14 INDIA SRI LANKA KFC – 10 6 PH – 7 63 25 KFC – 20 KFC – 15 PH – 32 PH – 11 KFC – 8 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of PH –
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: Financial Overview
FINANCIAL OVERVIEW
Slide 9: 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 10: Summary Consolidated Financials Q3 & 9M FY24
SUMMARY CONSOLIDATED FINANCIALS Q3 & 9M FY24 Particulars Q3 FY24 Q3 FY23 Change YoY 9M FY24 9M FY23 Change YoY FY23 Restaurant Sales ₹ mn 6,643 5,939 12% 19,582 16,978 15% 22,571 Adj. EBITDA ₹ mn 722 738 -2% 2,172 2,084 4% 2,647 % 10.9% 12.4% -150 bps 11.1% 12.3% -120 bps 11.7% EBITDA ₹ mn 1,225 1,1
Slide 11: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Gross Restaurant 154 170 43 57 31 39 40 Additions 778 814 850 743 715 743 579 31-Mar-22 31-Mar-23 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23 31-Dec-23 Restaurant 12 6 1 0 3 4 4 Closures RESTAURANT SALES 32% increase (INR mm) 22,571 12% Increase on
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.6% 68.7% 68.9% 69.0% 170 67.6% 67.3% 68.1% bps YoY FY22 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 RESTAURANT EBITDA (₹ MN / %)# 17.4% 17.6% * 18.1% 17.2% 210 bps 16.2% 16.1% YoY 3,929 16.0% 3,025 0% 1,070 910 1,128 1,037 1,067 YOY FY22 FY23 Q3FY23 Q4FY23 Q
Slide 13: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 150 12.4% 11.8% bps 9.4% * 10.6% 10.9% YoY 10.1% 2,647 1,614 2% 738 563 772 678 722 YOY FY22 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 EBITDA (₹ MN / %) 19.2% 17.8% * 120 19.6% 18.4% 18.8% 18.4% bps 4,343 18.2% YoY 3,054 ▲5% 1,167 1,030 1,224 1
Slide 14: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 15: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Value Chicken Category Craveable Taste - Lunch variety menu launch + Relevance - Build day part occasions of + ‒ Innovation: Reintroduction of Chizza as limited time offer + with advertising at ₹149/- - Snackers range at ₹99/- - New value construct on consumption:
Slide 16: 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 DEC 31, 2023 / FOR FY21 / FOR FY22 /FOR FY23 /FOR 9MFY24 Total Restaurant Count 203 263 341 406 Average Daily Sales per Restaurant (INR‘000s) 106 130 135 129 Restaurant Related 19% Revenue (in
Slide 17: Pizza Hut India Specific Plans Next 6-12 Months
PIZZA HUT INDIA SPECIFIC PLANS NEXT 6-12 MONTHS 16
Slide 18: 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 DEC 31, 2023 /FOR FY21 / FOR FY22 / FOR FY23 / FOR 9MFY24 Total Restaurant Count 162 219 286 319 Average Daily Sales per Restaurant (INR‘000s) 48 57 58 48 Restaurant Related 0% Revenue (i
Slide 19: 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 DEC 31, 2023 / FOR FY21 / FOR FY22 / FOR FY23 / FOR 9M FY24 Total Restaurant Count 70 95 114 121 Average Daily Sales per 94 108 72 81 Restaurant (INR‘000s) YoY Restaurant Related 52%
Slide 20: 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 21: 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 22: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 23: DJSI ESG Ratings
DJSI ESG RATINGS S&P CORPORATE SUSTAINABILITY ASSESSMENT ➢ 1st amongst QSR brands in India ➢ 95th Percentile Ratings amongst Global QSR companies ➢ Key Areas of Impact: a. Human Capital Development b. Business Ethics c. Customer Relationship Management https://www.spglobal.com/esg/scores/results?cid
Slide 24: Management Team
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Deepak Taluja Vikrant Vohra CEO – KFC Vijay Jain Nandita Bapat Priya Adiseshan Amar Patel Ashu Khanna Niraj Patil Puneet Bhatia CEO – Pizza Hut CFO Head - Projects Chief People Chief Tech Officer Head Supply Head Lega
Slide 25: Our 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 26: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 31st Dec 2023) % Holding Promoters & Promoter Group 31.3 Foreign Portfolio Investors / Non-Resident Indians 30.5 Domestic 38.2 Mutual Funds 25.5 Insurance Companies 4.7 Alternate Investment Funds 1.5 Resident Individuals 5.5 Others 1.0 Total 100.0 Sou
Slide 27: Thank You
THANK YOU Company: Investor Relations Partner: Sapphire Foods India Limited Orient Capital (a division of Link Group) CIN: L55204MH2009PLC197005 Mr. Bhavya Shah Mr. Rahul Kapoor Email ID: bhavya.shah@linkintime.co.in Email ID: rahul.kapoor@sapphirefoods.in +91 8082748577 www.sapphirefoods.in www.ori
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