Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q3 FY23 Earnings Presentation
46 slides from Sapphire Foods India's earnings presentation, February 2023
Slide 1: Sapphire Foods India Limited Q3 and 9M FY23 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q9M Q3 AND FY22 Earnings FY23 Presentation EARNINGS PRESENTATION February FEB 2022 2023
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: Key Highlights Q3 FY23
KEY HIGHLIGHTS Q3 FY23 ➢ Despite softening of demand post Diwali, our Q3 FY23 Consol Revenue (₹ 5,939 Mn) grew by 17%, wherein India Revenue delivered robust growth of 24% ➢ Consol Restaurant EBITDA grew YoY* by 5% at 18.1% ( 210 bps) primarily due to adverse Sri Lanka impact. India Restaurant EBIT
Slide 4: Table of Contents
TABLE OF CONTENTS 1 THE SAPPHIRE STORY Page 5 2 Q3 & 9M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS Page 6-13 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 14-23 ▪ PIZZA HUT INDIA Page 24-33 ▪ SRI LANKA Page 34-43 4 ESG Page 44-45 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
Q3 & 9M FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 7: Summary Consolidated Financials vs Normalized Q3 & 9M FY22
SUMMARY CONSOLIDATED FINANCIALS Q3 & 9M FY23 VS NORMALIZED Q3 & 9M FY22 FY22 Q3 FY22 Q3 FY23 Change YoY 9M FY22 9M FY23 Change YoY Restaurant Sales ₹ mn 17,154 5,055 5,939 17% 12,212 16,978 39% Adj. EBITDA ₹ mn * 1,615 737 738 0% 1,001 2,084 108% % 9.4% 14.6% 12.4% -220 bps 8.2% 12.3% 410 bps EBITDA
Slide 8: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT KFC India Pizza Hut India Sri Lanka RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT 325 250 263 274 209 219 46 89 95 114 10 KFC – 9 PH – 7 53 Dec'21 Mar'22 Dec'22 19 550* 579* 715* KFC – 15 KFC – 13 RESTAURANT ADDITION PH – 36 PH – 7 KFC – 6 PH – 3
Slide 9: Consolidated Financial Highlights Q3 & 9M FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 RESTAURANT SALES (₹ MN) ▲39% 17,154 17,154 16,978 ▲17% 12,212 5,939 5,055 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 INDIA Restaurant Sales grew by 24% INDIA Restaurant Sales grew by 47% GROSS MARGIN (%) 69.6% 69.6% 69.8% 69.4% 67.3% ▼210 bps 67.4% ▼240
Slide 10: Consolidated Financial Highlights Q3 & 9M FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 RESTAURANT EBITDA (₹ MN / %)# 21.9% 18.7% [20.2%]* 18.1% ▼210 18.9% bps* 20. 0% 18.7% [17.5%]* 17.8% ▲30 bps* 20. 0% 15. 0% 3,219 3,219 15. 0% 10. 0% 3,019 5.0 % 2,307 10. 0% 1,109 1,070 0.0 % 5.0 % -5.0% ▼4% -10.0% ▲31% 0.0 % FY22 Q3 FY22 Q3 FY23 FY22
Slide 11: Consolidated Financial Highlights Q3 & 9M FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3 & 9M FY23 EBITDA (₹ MN / %) 25. 0% 20. 0% 19.5% ▲280 bps* 18.9% 23.2% 19.6% ▼190 bps* 19. 5% 20. 0% [21.5%]* 18.9% 3,248 3,248 3,313 19. 0% 15. 0% 2,212 18. 5% 10. 0% 18.1% 1,170 1,167 [16.7%]* 18. 0% 5.0 % 17. 5% = flat ▲50% 0.0 % 17. 0% FY22 Q3 FY22 Q3 FY23 FY2
Slide 12: Revenue & Adj. EBITDA Trend
CONSOLIDATED FINANCIAL HIGHLIGHTS REVENUE & ADJ. EBITDA TREND REVENUE (₹ MN) & ADJ. EBITDA (%) 14.6%* 12.9% 13.3% 12.3% 12.4% 11.1% 9.4%* 17,154 16,978 5.0% 13,284 3.8% 5,604 5,939 5,055 4,943 5,436 10,160 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA
Slide 13: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) FY22 Q3 FY22 Q3 FY23 YoY % 9M FY22 9M FY23 YoY % Restaurant Sales 17,154.46 5,055.18 5,938.76 17.5% 12,211.55 16,978.41 39.0% Other operating income 61.26 20.24 22.56 35.91 73.24 COGS 5,277.97 1,565.13 1,963.66 3,723.29 5,610.04 Gross Profi
Slide 14: KFC India Business Performance
KFC India Business Performance
Slide 15: KFC India Channel Sales Contribution
KFC INDIA Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 37% 36% 36% 44% 45% 20% 19% 19% 22% 23% 43% 45% 45% 34% 32% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 15
Slide 16: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION CELEBRATION BUCKET 16
Slide 17: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION OUTDOOR CAMPAIGN IN KEY CITIES 17
Slide 18: KFC India Branding & Promotion
KFC INDIA BRANDING & PROMOTION 18
Slide 19: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES AKOLA, MAHARASHTRA SAMASAVLI, VADODARA GUINDY, CHENNAI BHATINDA GREEN CITY DT, PUNJAB 19
Slide 20: KFC India Average Daily Sales
KFC INDIA Q3 & 9M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 31% 29% 3% SSSG 31% 70% 20% 144 136 138 130 130 129 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 263 250 325 263 250 325 Average daily sales is for all restaurants including new additions during the period 20
Slide 21: KFC India Restaurant Sales
KFC INDIA Q3 & 9M FY23 RESTAURANT SALES (₹ MN) Rest. 60 31 Rest. 24 60 47 62 Addition Addition ▲47% 10,349 ▲26% 10,349 10,838 7,384 3,810 3,031 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. 263 Rest. 263 250 325 Count 250 325 Count 21
Slide 22: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q3 & 9M FY23 GROSS MARGIN (%) 68.4% 68.0% 68.4% 68.5% 66.5% 66.5% ▼150 bps ▼200 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 22.5% [21.2%]* 20.2% 19.5% 19.7% [18.6%]* 19.5% 19.5% ▼100 bps* ▲90 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 # Restaurant EBITDA figure
Slide 23: KFC India ADS & Restaurant EBITDA Trend
KFC INDIA ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 21.2% * 20.3% 20.2% 19.5% 19.0% 18.7%* 17.9% 14.0% 13.2% 132 138 144 144 136 130 106 130 134 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives in
Slide 24: Pizza Hut India Business Performance
Pizza Hut India Business Performance
Slide 25: Pizza Hut India Channel Sales Contribution
PIZZA HUT INDIA Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 49% 50% 49% 57% 60% 16% 15% 16% 17% 17% 34% 35% 35% 26% 24% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 25
Slide 26: Pizza Hut India Branding & Promotion
PIZZA HUT INDIA BRANDING & PROMOTION FACEBOOK/INSTAGRAM SAAVN SHARECHAT YOUTUBE 26
Slide 27: Pizza Hut India Branding & Promotion
PIZZA HUT INDIA BRANDING & PROMOTION SOCIAL MEDIA CAMPAIGN 27
Slide 28: Pizza Hut India Branding & Promotions
PIZZA HUT INDIA BRANDING & PROMOTIONS 28
Slide 29: Pizza Hut India New Restaurant Launches
PIZZA HUT INDIA NEW RESTAURANT LAUNCHES BAVDHAN, PUNE WESTFORT THRISSUR, KERALA LAKEFRONT TELIBANDHA, RAIPUR KASARVADAVALI, THANE 29
Slide 30: Pizza Hut India Average Daily Sales
PIZZA HUT INDIA Q3 & 9M FY23 AVERAGE DAILY SALES (₹ ‘000) SSSG 42% 22% -4% SSSG 42% 62% 18% 64 61 57 58 57 57 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 219 209 274 219 209 274 Average daily sales is for all restaurants including new additions during the period 30
Slide 31: Pizza Hut India Restaurant Sales
PIZZA HUT INDIA Q3 & 9M FY23 RESTAURANT SALES (₹ MN) Rest. Rest. 57 21 25 57 47 55 Addition Addition ▲49% 3,710 3,993 ▲20% 3,710 2,678 1,364 1,134 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Rest. 219 209 274 219 209 274 Count Count 31
Slide 32: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q3 & 9M FY23 GROSS MARGIN (%) 75.5% 75.4% 75.5% 75.8% 74.4% 74.8% ▼100 bps ▼100 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 17.3% [14.9%]* 14.1% 14.1% [11.5%]* 14.7% 13.4% 13.4% ▼80 bps* ▲320 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 # Restaurant EBITDA
Slide 33: Pizza Hut India ADS & Restaurant EBITDA Trend
PIZZA HUT INDIA ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 14.9%* 14.8% 15.1% 14.7% 14.1% 11.4%* 11.5% 7.3% 64 58 5.0% 61 55 61 64 57 48 58 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives in that p
Slide 34: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 35: Sri Lanka Business Channel Sales Contribution
SRI LANKA BUSINESS Q3 & 9M FY23 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 36% 38% 56% 49% 61% 29% 35% 35% 31% 29% 35% 27% 13% 15% 10% FY22 Q3 FY22 Q3 FY23 9M FY22 9M FY23 35
Slide 36: Sri Lanka Business Branding & Promotions
SRI LANKA BUSINESS BRANDING & PROMOTIONS 36
Slide 37: Sri Lanka Business New Product Launches
SRI LANKA BUSINESS NEW PRODUCT LAUNCHES 37
Slide 38: Sri Lanka Pizza Hut New Restaurant Launches
SRI LANKA BUSINESS PIZZA HUT NEW RESTAURANT LAUNCHES PH AVISSAWELLA PH KIRINDIWELA PH WELIWERIYA PH KONDAVIL 38
Slide 39: Sri Lanka Taco Bell New Restaurant Launches
SRI LANKA BUSINESS TACO BELL NEW RESTAURANT LAUNCHES TACOBELL PILIYANDALA TACOBELL KURUNEGALA 39
Slide 40: Sri Lanka Business Average Daily Sales
SRI LANKA BUSINESS Q3 & 9M FY23 AVERAGE DAILY SALES (LKR ‘000) SSSG% 31% 44% 18% SSSG% 31% 40% 33% 336 336 327 298 LKR 298 290 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Count 95 89 114 95 89 114 AVERAGE DAILY SALES (INR ‘000) 121 108 108 108 INR 75 74 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23
Slide 41: Sri Lanka Business Restaurant Sales
SRI LANKA BUSINESS Q3 & 9M FY23 RESTAURANT SALES (LKR MN) Rest. Rest. 25 19 19 25 16 8 Addition Addition ▲65% 8,229 9,299 ▲39% 8,229 LKR 5,630 3,282 2,356 FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Rest. Rest. 95 95 89 114 Count 89 114 Count RESTAURANT SALES (INR MN) 2,983 2,983 INR 2,066 2,049 ▼1% ▼
Slide 42: Sri Lanka Business Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q3 & 9M FY23 GROSS MARGIN (%) 66.2% 67.2% 66.2% 66.8% 57.3% 57.1% ▼990 bps ▼970 bps FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 RESTAURANT EBITDA# (%) 23.2% 22.6% [21.4%]* 26.4% [23.9%]* 23.2% 15.0% 14.6% ▼930 bps* ▼640 bps* FY22 Q3 FY22 Q3 FY23 FY22 9M FY22 9M FY23 Absolute Rest. E
Slide 43: Sri Lanka Business ADS & Restaurant EBITDA Trend
SRI LANKA BUSINESS ADS & RESTAURANT EBITDA TREND ADS (INR’ 000) AND EBITDA % 23.9% * 24.4% 22.0%* 19.5% 16.2% 15.5% 15.0% 15.0% 14.6% 121 108 112 87 90 74 75 73 75 FY 20 FY 21 FY 22 YTD Dec 22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 * Q3 FY22 and FY22 EBITDA% after Normalizing additional incentives
Slide 44: ESG
ESG First in the Indian QSR Industry to publish ESG Report aligned with GRI, SASB and BRSR standards GRI – Global Reporting Initiatives, SASB – Sustainability Accounting Standards Board, BRSR – Business Responsibility a Sustainability Report 44
Slide 45: ESG Materiality Assessment
ESG Materiality Assessment ✓ Diagnostic conducted to review our strategy, operating model, and culture in order to drive the ESG agenda ✓ Materiality assessment done with 165 internal and external stakeholders to identify our ESG priorities: 12 themes prioritized ✓ Granular ESG action plan being dev
Slide 46: Thank You
%718= 77OkIO THANK YOU