Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q1 FY23 Earnings Presentation
46 slides from Sapphire Foods India's earnings presentation, Aug 11, 2022
Slide 1: Outcome of Board Meeting letter
Date: August 11, 2022 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 – 40001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, Subject: Outcome of the Meeting o
Slide 2: Auditor's Review Report on Standalone Results
SR BC & CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Chartered Accountants Dadar ( West) Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing
Slide 3: Statement of Unaudited Standalone Financial Results
SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC197005, Email: info@sapphirefoods.in, Website: www.sapphirefoods.in Statement of Unaudited Standalone Financial Results for the quart
Slide 4: Notes to Standalone financial results
Sapphir Foods Notes to Standalone financial results: I. The above standalone financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on August 11, 2022. 2. These standalone financial results have been prepared in accor
Slide 5: Auditor's Review Report on Consolidated Results
SR BC& CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar ( West) Chartered Accountants Mumbai - 400 028, India Tel :+91 2268198000 Independent Auditor's Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Ob
Slide 6: SR BC & CO LLP
SR BC & CO LLP Chartered Accountants 6. The accompanying Statement includes the unaudited interim financial results and other financial information, in respect of 5 subsidiaries, whose unaudited interim financial results include total revenues of Rs 7 29.71 million, total net profit after tax of Rs.
Slide 7: Statement of Unaudited Consolidated Financial Results
k; SapphireFoods Sapphire Foods India Limited Registered address :702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062, India CIN: L55204MH2009PLC197005, Email: info@sapphirefoods.in, Website: www.sapphirefoods.in Statement of Unaudited Consolidated financial results for the
Slide 8: Notes to Consolidated financial results
Sapphir Foods Notes to Consolidated financial results: 1. The above consolidated financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on August 11, 2022. 2. These consolidated financial results have been prepared in
Slide 9: Sapphire Foods delivers highest ever Revenue and EBITDA in Q1 FY23
Investor Release Sapphire Foods delivers highest ever Revenue and EBITDA in Q1 FY23 despite macro challenges in Sri Lanka Mumbai, 11th August, 2022 – Sapphire Foods India Ltd, a franchisee of Yum Brands in the Indian subcontinent announces its Unaudited Financial Results for the Quarter ended 30th J
Slide 10: Flavour Fun Pizza launch and Sri Lanka performance
A significant gap in the product price portfolio of Pizza Hut has been plugged with launch of the differentiated Flavour Fun Pizza range (starting at Rs. 79/- with 12 Pizzas in 5 sauces). This was test marketed in Chennai and Hyderabad in Q1 FY23 and after encouraging results launched nationally on
Slide 11: Q1 FY23 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q Q1FY22 FY23 Earnings EARNINGS PPresentation RESENTATION February 11 AUG2022 2022
Slide 12: 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 13: Highlights of Q1 FY23
HIGHLIGHTS OF Q1 FY23 ➢ Q1 FY23 was the first quarter since the Covid pandemic to see a full recovery in operating hours. This had a positive impact on both KFC and Pizza Hut India especially the Dine In business which saw 102% and 85% recovery respectively (highest since Mar’20). ➢ We delivered hig
Slide 14: Table of Contents
TABLE OF CONTENTS 1 THE SAPPHIRE STORY Page 5 2 Q1 FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS Page 6-12 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 13-21 ▪ PIZZA HUT INDIA Page 22-29 ▪ SRI LANKA Page 30-36 4
Slide 15: 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 16: Q1 FY23 Consolidated Financial Highlights
Q1 FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 17: Summary Consolidated Financials
SUMMARY CONSOLIDATED FINANCIALS Q1FY23 FY22 Q1 FY22 Q1 FY23 Change YoY Restaurant Sales ₹ mn 17,154 3,027 5,436 80% Adj. EBITDA ₹ mn 1,808 93 722 676% Adj. EBITDA % 10.5% 3.1% 13.3% 1020 bps EBITDA ₹ mn 3,248 427 1,114 161% EBITDA % 18.9% 14.1% 20.5% 640 bps PAT ₹ mn 460 -264 381 N.M. PAT % 2.7% -8.
Slide 18: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT RESTAURANT DISTRIBUTION ACROSS KFC India Pizza Hut India Sri Lanka INDIAN SUBCONTINENT 263 281 208 219 235 171 40 69 95 98 9 KFC – 5 PH – 7 52 Jun'21 Mar'22 Jun'22 15 450* 579* 616* KFC – 14 KFC – 10 RESTAURANT ADDITION PH – 24 PH – 5 KFC – 5 PH – 1 K
Slide 19: Consolidated Financial Highlights: Restaurant Sales and Gross Margin
CONSOLIDATED FINANCIAL HIGHLIGHTS Q1 FY23 RESTAURANT SALES (₹ MN) GROSS MARGIN % 17,154 ▲80% 70.4% 69.6% 68.2% 5,436 3,027 ▼220 bps FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 9
Slide 20: Consolidated Financial Highlights: Restaurant EBITDA and Adj. EBITDA
CONSOLIDATED FINANCIAL HIGHLIGHTS Q1 FY23 RESTAURANT EBITDA (₹ MN / %)# ADJ. EBITDA (₹ MN / %)# 13.3% * ▲1020 18.7% 18.5%▲690 bps 10.5% 14 .0% bps 20 .0% 12 .0% 3,219 12.6% 15 .0% 1,808 10 .0% 8.0 % 10 .0% 6.0 % 3.1% 722 1,004 5.0 % 4.0 % 381 2.0 % ▲164% 93 ▲676% 0.0 % 0.0 % FY22 Q1 FY22 Q1 FY23 FY2
Slide 21: Consolidated Financial Highlights: EBITDA and PAT
CONSOLIDATED FINANCIAL HIGHLIGHTS Q1 FY23 EBITDA (₹ MN / %) PROFIT AFTER TAX (₹ MN / %) 25 .0% 20.5% *▲640 bps 18.9% 20 .0% ▲1570 3,248 2.7% -8.7% 7.0% * bps 15 .0% 14.1% 460 10 .0% 381 1,114 5.0 % 427 ▲161% 0.0 % FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 -264 * EBITDA & PAT includes ESOP cost of 0.
Slide 22: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT S No. Particulars (In Rs mn) FY22 Q1 FY22 Q1 FY23 YoY % A) Restaurant Sales 17,154.46 3,026.60 5,435.53 80% B) Other operating income 61.26 3.9 27.14 C) COGS 5,277.97 900.16 1,756.16 D) Gross Profit 11,937.75 2,130.34 3,706.51 74% E) Gross Margin% 69.6% 70.4% 68.
Slide 23: KFC India Business Performance
KFC India Business Performance
Slide 24: KFC India Q1 FY23 Channel Sales Contribution
KFC INDIA Q1 FY23 - CHANNEL SALES CONTRIBUTION % Delivery Takeaway Dine IN Recovery vs FY20* 35% 208% 44% 62% 19% 112% 22% 26% 46% 102% 34% 12% FY22 Q1 FY22 Q1 FY23 * Recovery % are calculated for comparable stores 14
Slide 25: KFC India New Product Launch
KFC INDIA NEW PRODUCT LAUNCH 15
Slide 26: KFC India Branding & Promotions
KFC INDIA BRANDING & PROMOTIONS 16
Slide 27: KFC India Digital Activation
KFC INDIA DIGITAL ACTIVATION 17
Slide 28: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES KFC-P HOENIX M ALL L OWER PAREL 18
Slide 29: KFC India New Restaurant Launches
KFC INDIA NEW RESTAURANT LAUNCHES KFC CHIKALI PUNE KFC SHALIMAR BAGH DELHI KFC GERUGAMBAKKAM CHENNAI KFC VICINO MALL MUMBAI 19
Slide 30: KFC India Average Daily Sales and Restaurant Sales
KFC INDIA Q1 FY23 AVERAGE DAILY SALES (₹ ‘000) RESTAURANT SALES (₹ MN) Rest. SSSG 31% -26% 65% 60 5 18 Addition 144 130 10,349 ▲98% 105 3,537 1,788 ▲37% FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 Rest. 263 208 281 Count Average daily sales is for all restaurants including new additions during the per
Slide 31: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q1 FY23 GROSS MARGIN (%) RESTAURANT EBITDA# (%) 69.3% 68.4% 67.3% 20.3% ▲680 bps 19.5% 13.5% ▼200 bps FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 # Restaurant EBITDA figures are Pre-IND AS 116. 21
Slide 32: Pizza Hut India Business Performance
Pizza Hut India Business Performance
Slide 33: Pizza Hut India Q1 FY23 Channel Sales Contribution
PIZZA HUT INDIA Q1 FY23 - CHANNEL SALES CONTRIBUTION % Delivery Takeaway Dine IN Recovery vs FY20* 47% 156% 57% 78% 16% 110% 17% 37% 85% 26% 15% 7% FY22 Q1 FY22 Q1 FY23 * Recovery % are calculated for comparable stores 23
Slide 34: Pizza Hut India New Product Launch
PIZZA HUT INDIA NEW PRODUCT LAUNCH 24
Slide 35: Pizza Hut India Branding & Promotions
PIZZA HUT INDIA BRANDING & PROMOTIONS 25
Slide 36: Pizza Hut Digital Activation
PIZZA HUT DIGITAL ACTIVATION FB Insta- Sust MX Player- Sust Dailyhunt Impact Social Campaign 26
Slide 37: Pizza Hut India New Restaurant Launches
PIZZA HUT INDIA NEW RESTAURANT LAUNCHES PH CAPITAL MALL NALASOPARA PH THODUPUZA KERALA PH DB MALL BHOPAL PH NELLORE ANDHRA PRADESH 27
Slide 38: Pizza Hut India Average Daily Sales and Restaurant Sales
PIZZA HUT INDIA Q1 FY23 AVERAGE DAILY SALES (₹ ‘000) RESTAURANT SALES (₹ MN) SSSG 42% -29% 47% Rest. 57 5 16 Addition 61 57 3,710 ▲85% 49 1,219 660 ▲24% FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 Rest. 219 171 235 Count Average daily sales is for all restaurants including new additions during the per
Slide 39: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q1 FY23 GROSS MARGIN (%) RESTAURANT EBITDA# (%) 76.4% 75.5% 75.3% 14.8% 13.4% 5.8% ▼110 bps ▲900 bps FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 # Restaurant EBITDA figures are Pre-IND AS 116. 29
Slide 40: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 41: Sri Lanka Business Q1 FY23 Channel Sales Contribution
SRI LANKA BUSINESS Q1 FY23 - CHANNEL SALES CONTRIBUTION % Recovery Delivery Takeaway Dine IN vs FY20 In LKR terms* 47% 211% 56% 70% 31% 165% 31% 23% 22% 126% 13% 7% FY22 Q1 FY22 Q1 FY23 * Recovery % are calculated for comparable stores 31
Slide 42: Sri Lanka Business Branding & Promotions
SRI LANKA BUSINESS BRANDING & PROMOTIONS 32
Slide 43: Sri Lanka Business New Restaurant Launches
SRI LANKA BUSINESS NEW RESTAURANT LAUNCHES KALMUNEI EMBULDENIYA PELAWATTA 33
Slide 44: Sri Lanka Average Daily Sales and Restaurant Sales
SRI LANKA BUSINESS Q1 FY23 AVERAGE DAILY SALES (LKR ‘000) RESTAURANT SALES (LKR MN) Rest. SSSG% 31% 56% 53% 25 -1 3 Addition 333 8,229 298 ▲93% 249 2,893 1,502 ▲34% FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 Rest. 95 69 98 Count RESTAURANT SALES (INR MN) AVERAGE DAILY SALES (INR ‘000) 108 2,983 91 ▲1
Slide 45: Sri Lanka Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q1 FY23 GROSS MARGIN (%) RESTAURANT EBITDA# (%) 23.2% 66.9% 66.2% 18.0% 15.5% ▼250 bps 58.8% LKR margin growth 65% and ▼810 bps flat in INR terms FY22 Q1 FY22 Q1 FY23 FY22 Q1 FY22 Q1 FY23 # Restaurant EBITDA figures are Pre-IND AS 116. 35
Slide 46: Thank You
THANK YOU