Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q1 FY25 Earnings Presentation
44 slides from Sapphire Foods India's earnings presentation, July 2024
Slide 1: Sapphire Foods India Limited Q1 FY25 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3QFY25 Q1 FY22 EarningsPERFORMANCE BUSINESS Presentation February 2022 JULY’2024
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 THE SAPPHIRE STORY Page 04 2 Q1 FY25 FINANCIAL HIGHLIGHTS Page 05-16 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 17-26 ▪ PIZZA HUT INDIA Page 27-34 ▪ SRI LANKA Page 35-42 4 ESG Page 43 3
Slide 4: 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 5: Q1 FY25 Consolidated Financial Highlights
Q1 FY25 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 6: Key Highlights Q1 FY25
KEY HIGHLIGHTS Q1 FY25 ➢ Our Q1 FY25 Consol Restaurant Sales (₹ 7,165 Mn) grew by 10% and EBITDA (₹ 1,242 Mn) increased by 1%. Discretionary consumer spends seem to be subdued and similar to past few quarters trend. Sapphire KFC was impacted by the shift in the dates of the Navratra Festival compare
Slide 7: Summary Consolidated Financials Q1 FY25
SUMMARY CONSOLIDATED FINANCIALS Q1 FY25 Particulars Q1 FY25 Q1 FY24 Change YoY FY24 Restaurant Sales ₹ mn 7,165 6,526 10% 25,880 Adj. EBITDA ₹ mn 707 772 -8% 2,717 % 9.9% 11.8% -190 bps 10.5% EBITDA ₹ mn 1,242 1,224 1% 4,718 % 17.3% 18.8% -150 bps 18.2% PBT ₹ mn 118 336 -65% 699 % 1.7% 5.2% -350 bps
Slide 8: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT KFC India Pizza Hut India Sri Lanka + Maldives RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT 429 442 358 302 319 320 61 15 118 124 124 KFC – 10 6 PH – 6 7 66 Jun'23 Mar'24 Jun'24 28 778 872 886 KFC – 22 KFC – 16 RESTAURANT ADDITION PH – 30 PH – 1
Slide 9: Financial Highlights: Restaurant Sales
FINANCIAL HIGHLIGHTS Q1 FY25 CONSOLIDATED RESTAURANT SALES (₹ MN) 25,880 ▲10% 7,165 6,526 FY 24 Q1 FY24 Q1 FY25 INDIA RESTAURANT SALES (₹ MN) 22,342 ▲9% 6,167 5,648 FY 24 Q1 FY24 Q1 FY25 9
Slide 10: Financial Highlights: Gross Margin
FINANCIAL HIGHLIGHTS Q1 FY25 CONSOLIDATED GROSS MARGIN (%) 68.9% 68.7% 68.8% ▲10 bps FY24 Q1 FY24 Q1 FY25 INDIA GROSS MARGIN (%) 0.8 0 0.8 0 ▲25 bps 0.7 8 0.7 8 ▲20 bps 0.7 6 0.7 6 0.7 4 0.7 4 ▲15 bps 69.9% 0.7 2 0.7 2 69.8% 70.0% ▲20 bps ▲10 bps 0.7 0 0.7 0 0.6 8 0.6 8 ▲5 bps 0.6 6 0.6 6 0.6 4 0.6
Slide 11: Financial Highlights: Restaurant EBITDA
FINANCIAL HIGHLIGHTS Q1 FY25 CONSOLIDATED RESTAURANT EBITDA (₹ MN / %)# 17.2% 4,4 99.93 4,092 2,4 99.93 17. 0% 19. 0% 3,9 99.93 1,9 99.93 3,4 99.93 15.1% ▼210 bps 15. 0% 15.8% 14. 0% 2,9 99.93 1,4 99.93 2,4 99.93 9.0 % 1,128 1,084 13. 0% 1,9 99.93 999 .93 11. 0% 4.0 % 1,4 99.93 999 .93 499 .93 -1.0%
Slide 12: Financial Highlights: Adj. EBITDA and EBITDA
FINANCIAL HIGHLIGHTS Q1 FY25 ADJ. EBITDA (₹ MN / %)# 11.8% 2,717 9.9% ▼190 bps 10.5% 772 707 ▼8% FY24 Q1 FY24 Q1 FY25 EBITDA (₹ MN / %) 18.8% 17.3% ▼150 bps 19. 0% 4,718 17. 0% 1,224 20. 0% 1,242 15. 0% 4,4 99 19. 0% 3,9 99 18. 0% 13. 0% 18.2% 3,4 99 17. 0% 2,9 99 16. 0% 11. 0% 2,4 99 15. 0% 1,9 99
Slide 13: Financial Highlights: Profit Before Tax
FINANCIAL HIGHLIGHTS Q1 FY25 Adj. PROFIT BEFORE TAX (₹ MN / %)# 1,2 00.00 1,1 00.00 1,057 1,0 00.00 600 .00 900 .00 800 .00 4.1% 500 .00 6.4% 419 700 .00 600 .00 400 .00 3.3% ▼ 310 bps 500 .00 400 .00 300 .00 239 300 .00 200 .00 200 .00 100 .00 ▼43% 100 .00 0.0 0 0.0 0 FY24 -100.00 Q1 FY24 Q1 FY25 -
Slide 14: Financial Highlights: Profit After Tax
FINANCIAL HIGHLIGHTS Q1 FY25 Adj. PROFIT AFTER TAX (₹ MN / %)# 900.00 450.00 4.8% 3.5 % 800.00 3.0% 400.00 3.0 % 5.0 % 310 700.00 350.00 600.00 786 300.00 2.5 % 2.4% ▼ 240 bps 3.0 % 2.0 % 500.00 250.00 400.00 200.00 1.5 % 172 1.0 % 300.00 150.00 1.0 % -1.0% 200.00 100.00 0.5 % 100.00 50.00 ▼45% -3.0
Slide 15: Restaurant Sales & Adj. EBITDA Trend
FINANCIAL HIGHLIGHTS RESTAURANT SALES & ADJ. EBITDA TREND REST. SALES (₹ MN) & ADJ. EBITDA (%) YoY 69% 32% 15% Change % 11.7% 11.8% 10.5% 10.6% 10.9% 9.9% 9.4% * 8.6% 22,571 25,880 7,165 6,526 6,414 6,643 6,297 3.8% 17,154 10,160 FY 21 FY 22 FY 23 FY 24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 * Adj.
Slide 16: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) Q1 FY25 Q1 FY24 YoY % FY24 Restaurant Sales 7,165.14 6,525.56 10% 25,879.61 Other operating income 17.75 18.28 63.18 COGS 2,256.09 2,060.94 8,109.06 Gross Profit 4,926.80 4,482.90 10% 17,833.73 Gross Margin% 68.8% 68.7% 68.9% Employee Expen
Slide 17: KFC India Business Performance
KFC India Business Performance
Slide 18: KFC Brand Priorities
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value Craveable Taste Enhance Fried ‒ Enhance KFC Zinger’s “best Chicken Category burger credentials” with launch Value + Relevance Continue to build lunch occasion + of 6 sauce variants & new veg Paneer Zinger ‒ Expand KFC Ch
Slide 19: KFC Brand Priorities
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value 19
Slide 20: KFC Brand Priorities
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value 20
Slide 21: KFC Brand Priorities: Frictionless Customer Experience
KFC BRAND PRIORITIES Frictionless customer experience | Digital Total App downloads – 35.9 Mn+ KIOSKs implemented at ~40% Restaurants Monthly Active Users – 1.5 Mn 21
Slide 22: Improving Accessibility: Doubling Restaurant Count
KFC BRAND PRIORITIES Improving Accessibility – On track to double Restaurant Count in ~3 years (base Dec’21 count) RAYYA, PUNJAB PUNE, MAHARASHTRA OMAXE, CHANDIGARH VALSAD, GUJRAT 22
Slide 23: KFC India Q1 FY25 Channel Sales Contribution
KFC INDIA Q1 FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN 38% 36% 40% 20% 19% 21% 42% 45% 39% FY24 Q1 FY24 Q1 FY25 23
Slide 24: KFC India Q1 FY25 Sales and ADS
KFC INDIA Q1 FY25 AVERAGE DAILY SALES (₹ ‘000) SSSG% -1% 0% -6% 125 138 122 FY24 Q1 FY24 Q1 FY25 RESTAURANT SALES (₹ MN) 88 9,0 00 .00 17 13 Rest. 8,0 00 .00 Addition 7,0 00 .00 ▲11% 17 ,99 9.00 17,157 6,0 00 .00 15 ,99 9.00 4,770 13 ,99 9.00 5,0 00 .00 4,286 11 ,99 9.00 4,0 00 .00 9,9 99 .00 3,0 00
Slide 25: KFC India Q1 FY25 Margins
KFC INDIA Q1 FY25 GROSS MARGIN % 68.2% 68.1% 68.2% ▲10 bps FY24 Q1 FY24 Q1 FY25 RESTAURANT EBITDA (%)# 20.8% 19.7% 18.8% ▼200 bps FY24 Q1 FY24 Q1 FY25 # Restaurant EBITDA figures are Pre-IND AS 116. 25
Slide 26: KFC India Restaurant Sales & EBITDA Trend
KFC INDIA RESTAURANT SALES & EBITDA TREND Rest. SALES (₹MN) & Rest. EBITDA % YoY 75% 40% 18% 20.8% Change 20.1% % 19.2% 18.7% 18.8% 19.7% 19.4% 18.7%* 14.0% 17,157 4,770 14,529 4,286 4,165 4,421 4,285 10,349 5,897 FY 21 FY 22 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 ADS 106 130 135 125 138
Slide 27: Pizza Hut India Business Performance
Pizza Hut India – Business Performance
Slide 28: Recap on Pizza Hut Action Plan
RECAP ON PIZZA HUT ACTION PLAN Sapphire Pizza Hut has seen an uplift in performance. However as communicated earlier, we need to continue to back the brand with both product innovation and marketing investments over the next several quarters. 28
Slide 29: Pizza Hut Brand Priorities
PIZZA HUT BRAND PRIORITIES Build Brand Salience | TV AD PAN INDIA 29
Slide 30: Pizza Hut Brand Priorities: Digital
PIZZA HUT BRAND PRIORITIES Digital | Operational Excellence Total App Downloads – 11.2 Mn+ Self Ordering QR Code 15% of Dine In Mix Monthly Active Users – 0.9 Mn 30
Slide 31: Pizza Hut India Q1 FY25 Channel Sales Contribution
PIZZA HUT INDIA Q1 FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN 49% 50% 50% 16% 15% 16% 35% 35% 34% FY24 Q1 FY24 Q1 FY25 31
Slide 32: Pizza Hut India Q1 FY25 Sales and ADS
PIZZA HUT INDIA Q1 FY25 AVERAGE DAILY SALES (₹ ‘000) SSSG% -16% -9% -7% 52 48 46 FY24 Q1 FY24 Q1 FY25 RESTAURANT SALES (₹ MN) Rest. Addition 33 16 1 5,185 ▲3% 1,362 1,397 FY24 Q1 FY24 Q1 FY25 Rest. Count 319 302 320 Average daily sales is for all restaurants including new additions during the period
Slide 33: Pizza Hut India Q1 FY25 Margins
PIZZA HUT INDIA Q1 FY25 GROSS MARGIN (%) 76.1% ▲100 bps 75.6% 75.1% FY24 Q1 FY24 Q1 FY25 RESTAURANT EBITDA# (%) 4.9% 9.0% 4.6% ▼440 bps FY24 Q1 FY24 Q1 FY25 # Restaurant EBITDA figures are Pre-IND AS 116. 33
Slide 34: Pizza Hut India Restaurant Sales & EBITDA Trend
PIZZA HUT INDIA RESTAURANT SALES & EBITDA TREND Rest. SALES (₹MN) & Rest. EBITDA % YoY 67% 41% -1% 15 .0% Change % 9.0% 7.6% 10 .0% 4.6% 4.6% 13.3% 5.0 % -2.7% 11.4% * 0.0 % -5.0 % -10 .0% 1,362 1,330 1,396 1,305 5.0% 5,214 5,185 1,188 -15 .0% 3,710 4.9% -20 .0% 2,218 -25 .0% -30 .0% FY 21 FY 22 FY2
Slide 35: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 36: Sri Lanka Business Branding and Marketing
SRI LANKA BUSINESS BRANDING AND MARKETING Note:- Rs. represents LKR 36
Slide 37: Sri Lanka Business Awards & Recognition
SRI LANKA BUSINESS AWARDS & RECOGNITION 37
Slide 38: Sri Lanka Q1 FY25 Channel Sales Contribution
SRI LANKA BUSINESS Q1 FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN 37% 37% 38% 35% 34% 35% 28% 29% 27% FY24 Q1 FY24 Q1 FY25 38
Slide 39: Sri Lanka Q1 FY25 Average Daily Sales
SRI LANKA BUSINESS Q1 FY25 AVERAGE DAILY SALES (LKR ‘000) 2% 0% 11% SSSG% 305 329 303 FY24 Q1 FY24 Q1 FY25 AVERAGE DAILY SALES (INR ‘000) 89 79 81 FY24 Q1 FY24 Q1 FY25 Rest. Count 120 114 120 Average daily sales is for all restaurants including new additions during the period Note: LKR to INR conver
Slide 40: Sri Lanka Q1 FY25 Restaurant Sales
SRI LANKA BUSINESS Q1 FY25 RESTAURANT SALES (LKR MN) Rest. 6 0 0 Addition 13,123 ▲13% 3,549 3,145 FY 24 Q1 FY 24 Q1 FY 25 Rest. 120 114 120 Count RESTAURANT SALES (INR MN) 3,397 ▲19% 978 825 FY24 Q1 FY24 Q1 FY25 40
Slide 41: Sri Lanka Q1 FY25 Margins
SRI LANKA BUSINESS Q1 FY25 GROSS MARGIN % 61.6% 60.5% 60.6% ▲10 bps FY24 Q1 FY24 Q1 FY25 0.1 8 0.1 8 0.1 7 0.1 7 RESTAURANT EBITDA (%)# 0.1 6 0.1 6 0.1 5 0.1 5 13.7% 13.2% ▲20 bps 0.1 4 0.1 4 13.0% 0.1 3 0.1 3 0.1 2 0.1 2 0.1 1 0.1 1 0.1 0 0.1 0 FY24 Q1 FY24 Q1 FY25 Absolute Rest. EBITDA increased b
Slide 42: Sri Lanka Restaurant Sales & EBITDA Trend
SRI LANKA BUSINESS RESTAURANT SALES & EBITDA TREND Rest. SALES (LKR MN) & Rest. EBITDA % YoY Change 60% 48% 8% % 15.3% 22.0% * 14.2% 13.2% 19.6% 13.0% 12.3% 14.8% 13.7% 13,123 3,514 3,549 3,379 12,166 3,145 3,085 8,229 5,145 FY 21 FY 22 FY 23 FY 24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 ADS (LKR 23
Slide 43: ESG Highlights
ESG HIGHLIGHTS ▪ Published our 3rd ESG Report under GRI, SASB and BRSR Standards ▪ Only Indian QSR Company to publish full-fledged ESG Report aligned with global ESG frameworks. ▪ Obtained limited assurance on our BRSR and ESG Report on a voluntary basis. Received IGBC (Indian Green building Council
Slide 44: Thank You
THANK YOU