Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q2 FY23 Earnings Presentation
23 slides from Sapphire Foods India's earnings presentation, November 2022
Slide 1: Sapphire Foods India Limited Earnings Presentation
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – NOV’22 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 7-11 3 SEGMENTAL PERFORMANCE ▪ KFC INDIA Page 13 ▪ PIZZA HUT INDIA Page 14-15 ▪ SRI LANKA BUSINESS Page 16 ▪ UNIT ECONOMICS Page 17 4 GROWTH STRATEGY Page 18-19 5 MANAGEMENT, BOARD & SHAREHOLDING PATTERN Page 20-22 3
Slide 4: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 658 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (3) Sri Lanka’s Largest International QSR chain (1) 302 KFC Restaurants (2) 349 Pizza Hut Restaurants (2) 7 Taco Bell Restaurants (2) ₹ 5,604 MN Q2 FY23 Re
Slide 5: Journey of Sapphire Foods: Built a Platform of 658 Outlets
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 658 OUTLETS (1) SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 301 249 Restaurants Cities 106 76 59 52 42 10 INDIA SRI LANKA KFC – 7 PH – 7 51 16 KFC – 14 KFC – 11 PH – 28 PH – 5 KFC – 5 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of PH – 2 KF
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: Summary Consolidated Financials Q2 & 6M FY23
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 9: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Gross Restaurant 62 36 154 39 43 Additions 616 658 579 427 437 31-Mar-20 31-Mar-21 31-Mar-22 30-Jun-22 30-Sep-22 Restaurant 11 26 12 2 1 Closures RESTAURANT SALES (INR mm) 68.8% increase 54% Increase 17,154 on Y-O-Y 13,284 10,160 11,040 5,436 5,
Slide 10: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.9% 69.6% 68.3% 68.2% 67.4% 66.7% 30 270 bps bps FY20 FY21 FY22 Q1 FY23 Q2 FY23 6M FY23 RESTAURANT EBITDA (₹ MN / %)# 570 18.7%* bps 18.5% 16.8% 17.6% 80 bps 11.9% 13.0% 1,579 1,321 3,219 1,004 940 1,944 FY20 FY21 FY22 Q1FY23 Q2FY23 6MFY23 KEY Zero-based cost
Slide 11: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 13.3% 12.2% 10.5%* 11.1% 5.0% 1,808 670 3.8% 1,346 730 662 382 bps 722 624 bps FY20 FY21 FY22 Q1 FY23 Q2 FY23 6M FY23 EBITDA (₹ MN / %) 20.5% 18.9% * 19.4% 17.6% 18.4% 14.0% 3,248 1,856 1,787 130 2,146 480 1,114 1,032 bps bps FY20 FY21 FY22 Q1FY23 Q2FY2
Slide 12: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 13: Core Composition of Our Business: KFC India
CORE COMPOSITION OF OUR BUSINESS: KFC INDIA AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF SEP 30, 2022 / FOR FY20 / FOR FY21 / FOR FY22 /FOR 6M FY23 Total Restaurant Count 187 203 263 301 Average Daily Sales per 130 106 130 139 Restaurant (INR‘000s) Restaurant Related 7,753 5,897 24
Slide 14: Core Composition of Our Business: Pizza Hut India
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF SEP 30, 2022 / FOR FY20 / FOR FY21 / FOR FY22 / FOR 6M FY23 Total Restaurant Count 174 162 219 249 Average Daily Sales per Restaurant (INR‘000s) 58 48 57 62 Restaurant Related 70% Revenue
Slide 15: Pizza Hut India Transformed Business Model
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA Retain product quality and dining experience Transformed Value Positioning on Omni-channel smaller Business par with other QSR size stores Model brands Cost optimization Source: Company data 15
Slide 16: Core Composition of Our Business: Sri Lanka Operations
CORE COMPOSITION OF OUR BUSINESS: SRI LANKA OPERATIONS AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF MAR 31, 2022 AS OF SEP 30, 2022 / FOR FY20 / FOR FY21 / FOR FY22 / FOR 6M FY23 Total Restaurant Count 64 70 95 106 Average Daily Sales per 92 94 108 74 Restaurant (INR‘000s) YoY Restaurant Related 52%
Slide 17: 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 6M FY23 FY19 6M FY23 Average Daily Sales per Restaurant 125 139 61 62 (in ₹ ’000
Slide 18: Well Positioned to Capture Future Opportunities
WELL POSITIONED TO CAPTURE FUTURE OPPORTUNITIES Explore Accelerate acquisition of conversion from high quality and unorganized food scalable QSR and services to KFC food brands in and PH brands existing and new geographies.. Capability + Capital Cash net of debt of Rs. 3,370 Mn as on 30th Sep 22 18
Slide 19: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 19
Slide 20: Management Team with Diverse Experiences
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Finance KFC Pizza Hut People Supply Chain Technology Business Projects Legal Development Source: Company data 20
Slide 21: Board of Directors
BOARD OF DIRECTORS OUR DIRECTORS * INTERNAL AUDIT STATUTORY AUDIT ESG Source: Company data * Mr. Norbert Fernandes is Alternate Director to Mr. Paul Robine 21
Slide 22: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 30th September 2022) % Holding Promoters & Promoter Group 51.3 Foreign Company 12.5 Foreign Portfolio Investors / Non-Resident Indians 13.0 Domestic 23.2 Mutual Funds 9.8 Insurance Companies 5.8 Alternate Investment Funds 1.2 Resident Individuals 5.8
Slide 23: 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