Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Q3 FY25 Earnings Presentation
47 slides from Sapphire Foods India's earnings presentation, February 2025
Slide 1: Q3 and 9M FY25 Earnings Presentation
Sapphire SAPPHIREFoods FOODS India INDIA LLimited IMITED 3Q9M Q3 AND FY22 Earnings FY25 Presentation BUSINESS PERFORMANCE February 2022 FEB’2025
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 Q3 AND 9M FY25 FINANCIAL HIGHLIGHTS Page 05-16 3 BUSINESS PERFORMANCE ▪ KFC INDIA Page 17-26 ▪ PIZZA HUT INDIA Page 27-36 ▪ SRI LANKA Page 37-45 4 ESG Page 46 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: Q3 and 9M FY25 Consolidated Financial Highlights
Q3 AND 9M FY25 CONSOLIDATED FINANCIAL HIGHLIGHTS
Slide 6: Key Highlights Q3 FY25
KEY HIGHLIGHTS Q3 FY25 ➢ Sapphire Foods delivered a healthy quarter with double digit revenue growth (₹7550 Mn, 14% growth), double digit Adj. EBITDA growth (₹ 811 Mn, 12% growth) and double digit Adj. EBITDA Margin % (10.7%). All 3 business verticals (KFC India, Pizza Hut India & Sri Lanka) deliver
Slide 7: Summary Consolidated Financials Q3 & 9M FY25
SUMMARY CONSOLIDATED FINANCIALS Q3 & 9M FY25 Particulars Q3 FY25 Q3 FY24 Change YoY 9M FY25 9M FY24 Change YoY FY24 Restaurant Sales ₹ mn 7,550 6,643 14% 21,655 19,582 11% 25,880 Adj. EBITDA ₹ mn 811 722 12% 2,109 2,172 -3% 2,717 % 10.7% 10.9% -20 bps 9.7% 11.1% -140 bps 10.5% EBITDA ₹ mn 1,398 1,22
Slide 8: Sapphire Foods Current Presence
SAPPHIRE FOODS CURRENT PRESENCE RESTAURANT COUNT RESTAURANT DISTRIBUTION ACROSS KFC India Pizza Hut India Sri Lanka + Maldives INDIAN SUBCONTINENT 496 406 429 319 319 339 67 18 125 124 128 KFC––11 KFC 6 PH––67 70 PH Dec'23 Mar'24 Dec'24 31 850 872 963 KFC – 26 KFC – 17 RESTAURANT ADDITION PH – 33 PH
Slide 9: Financial Highlights: Restaurant Sales
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 CONSOLIDATED RESTAURANT SALES (₹ MN) ▲11% 25,880 ▲14% 21,655 19,582 7,550 6,643 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 INDIA RESTAURANT SALES (₹ MN) ▲9% 22,342 ▲11% 18,448 16,869 6,379 5,726 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 9
Slide 10: Financial Highlights: Gross Margin
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 CONSOLIDATED GROSS MARGIN (%) 69.0% 68.9% 68.9% 68.7% ▼30 bps 68.8% ▼10 bps Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 INDIA GROSS MARGIN (%) 0.7 2 ▲0 bps 0.7 2 12 0.7 1 ▼5 bps 70.1% 0.7 1 70.0% ▲10 bps 10 0.7 0 69.8% ▼30 bps ▼10 bps 0.7 0 69.9% 69.9% 8 0.6 9 ▼15 bps 0.6
Slide 11: Financial Highlights: Restaurant EBITDA
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 CONSOLIDATED RESTAURANT EBITDA (₹ MN / %)# 2,5 00.00 4,092 16.5% 16.0% 15.4% ▼60 bps 19. 0% 2,0 00.00 14. 0% 3,231 3,203 1,5 00.00 1,067 1,164 9.0 % 15.8% ▼170 bps 1,0 00.00 4.0 % 14.8% 500 .00 -1.0% ▲9% ▼1% 0.0 0 -6.0% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 INDIA RES
Slide 12: Financial Highlights: Adj. EBITDA and EBITDA
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 ADJ. EBITDA (₹ MN / %)# 1,9 97 20. 0% 18. 0% 16. 0% 1,4 97 14. 0% 10.9% 10.7% 12. 0% 2,717 11.1% 997 811 10. 0% 2,172 2,109 722 8.0 % ▼20 bps ▼140 bps 6.0 % 10.5% 9.7% 497 4.0 % 2.0 % -3 ▲12% 0.0 % ▼3% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 EBITDA (₹ MN / %) 1,398 1,2
Slide 13: Financial Highlights: Profit Before Tax
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 Adj. PROFIT BEFORE TAX (₹ MN / %)# 1,057 3.8% 3.4% ▼ 40 bps 5.0% 973 256 255 637 ▼ 210 bps 4.1% 2.9% ▼0% ▼ 35% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 PROFIT BEFORE TAX (₹ MN / %) 699 2.1% 2.2% ▲ 10 bps 691 1.6% ▼ 190 bps 168 2.7% 3.5% 141 340 ▲ 20% ▼51% Q3 FY24 Q3 FY2
Slide 14: Financial Highlights: Profit After Tax
FINANCIAL HIGHLIGHTS Q3 & 9M FY25 Adj. PROFIT AFTER TAX (₹ MN / %)# 786 710 194 ▼ 20 bps 2.8% 3.6% 485 2.6% 184 3.0% 2.2% ▼ 140 bps ▲ 5% ▼ 35% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 PROFIT AFTER TAX (₹ MN / %) 2.5% 2.0% 1.5% 1.7% ▲ 20 bps 520 499 127 98 0.7%▼ 180 bps 147 ▼ 71% ▲29% Q3 FY24 Q3 FY25 FY2
Slide 15: Restaurant Sales & Adj. EBITDA Trend
FINANCIAL HIGHLIGHTS RESTAURANT SALES & ADJ. EBITDA TREND REST. SALES (₹ MN) & ADJ. EBITDA (%) YoY 69% 32% 13% Change % 11.7% 10.9% 10.5% 10.7% 9.9% 9.4% * 8.6% 8.5% 22,571 25,880 7,165 7,550 6,643 6,940 3.8% 17,154 6,297 10,160 FY 21 FY 22 FY23 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 * Adj. EB
Slide 16: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) Q3 FY25 Q3 FY24 YoY % 9M FY25 9M FY24 YoY % FY24 Restaurant Sales 7,549.76 6,642.76 14% 21,655.01 19,582.19 11% 25,879.61 Other operating income 15.61 12.84 50.22 43.65 63.18 COGS 2,376.16 2,072.23 6,802.83 6,143.03 8,109.06 Gross Profit 5,
Slide 17: KFC India Business Performance
KFC India Business Performance
Slide 18: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Chicken Category Craveable Taste Value ‒ Increase frequency of - 3 Tier value structure: Relevance + - Increase KFC consumer base by popularizing Core Variety offerings + consumption by building day parts (lunch, Wednesday, late night) & product innovation + • Intr
Slide 19: KFC Brand Priorities: Fried Chicken Category Relevance
KFC BRAND PRIORITIES Fried Chicken Category Relevance 19
Slide 20: KFC Brand Priorities: Craveable Taste | Value
KFC BRAND PRIORITIES Craveable taste | Value 20
Slide 21: KFC Brand Priorities: Frictionless Customer Experience | Digital
KFC BRAND PRIORITIES Frictionless customer experience | Digital Total App downloads – 47.5 Mn+ Digital KIOSKs implemented at 206 Monthly Active Users – 2.1 Mn Restaurants 21
Slide 22: KFC Brand Priorities: Improving Accessibility
KFC BRAND PRIORITIES Improving Accessibility – On track to double Restaurant Count in ~3 years (base Dec’21 count) ZIRA,PUNJAB HARIDWAR, UTTARAKHAND LONDON STREET MORINDA,CHANDIGARH SIVAKASI, TAMIL NADU 22
Slide 23: KFC India Channel Sales Contribution
KFC INDIA Q3 & 9M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 38% 41% 38% 38% 41% 19% 20% 19% 21% 21% 43% 38% 42% 43% 38% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 23
Slide 24: KFC India Average Daily Sales and Restaurant Sales
KFC INDIA Q3 & 9M FY25 AVERAGE DAILY SALES (₹ ‘000) SSSG% -2% -3% SSSG% -1% -1% -6% 125 125 129 115 116 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 RESTAURANT SALES (₹ MN) Rest. 25 35 88 65 67 Addition ▲12% 4,948 4,421 ▲11% 17,157 14,246 12,872 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 Rest. Count 406 496 429 4
Slide 25: KFC India Gross Margin and Restaurant EBITDA
KFC INDIA Q3 & 9M FY25 GROSS MARGIN % 68.4% 68.2% 68.2% 68.2% ▲10 bps ▼20 bps 68.1% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 RESTAURANT EBITDA (%)# 20.1% 19.7% 20.0% 18.2% 17.9% ▼210 bps ▼190 bps Q3 FY24 Q3 FY25 FY24 9M FY24 9M 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% Change % 20.1% 19.4% 19.7% 18.8% 18.7% * 18.7% 18.2% 16.5% 14.0% 17,157 4,948 4,770 4,527 14,529 4,421 4,285 10,349 5,897 FY 21 FY 22 FY23 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 ADS (₹ 000)# 106 130 13
Slide 27: Pizza Hut India Business Performance
Pizza Hut India – Business Performance
Slide 28: Pizza Hut: Dine-In Led Omni Channel Customer Promise
PIZZA HUT: ACTION UPDATE ON DINE- IN LED OMNI CHANNEL CUSTOMER PROMISE Taste Superiority Differentiated Dine-In Delivery Experience Several innovations launched: - Delivering Hot n Fresh Pizzas - Melts: “folded” handheld pizza Experience (< 20 mins from out of Oven) + - Momo Mia Pizza - Thin & Crisp
Slide 29: Pizza Hut Brand Priorities: Brand Salience | Product Innovation
PIZZA HUT BRAND PRIORITIES Build Brand Salience | Product Innovation 29
Slide 30: Pizza Hut Brand Priorities: Brand Salience | Value
PIZZA HUT BRAND PRIORITIES Build Brand Salience | Value 30
Slide 31: Pizza Hut Brand Priorities: New Restaurant Launches
PIZZA HUT BRAND PRIORITIES New Restaurant Launches BAPUNAGAR,AHMEDABAD RACECOURSE ROAD, RAJKOT REWA ROAD, MP KUMARSWAMY, BANGALORE 31
Slide 32: Pizza Hut Brand Priorities: Digital | Operational Excellence
PIZZA HUT BRAND PRIORITIES Digital | Operational Excellence Total App Downloads – 15 Mn+ Monthly Active Users – 1.3 Mn 32
Slide 33: Pizza Hut India Channel Sales Contribution
PIZZA HUT INDIA Q3 & 9M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 49% 51% 49% 50% 51% 16% 15% 16% 15% 15% 35% 34% 35% 35% 34% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 33
Slide 34: Pizza Hut India Average Daily Sales and Restaurant Sales
PIZZA HUT INDIA Q3 & 9M FY25 AVERAGE DAILY SALES (₹ ‘000) -19% 5% SSSG% SSSG% -16% -16% -1% 45 48 46 48 48 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 RESTAURANT SALES (₹ MN) Rest. 16 8 33 33 20 Addition ▲10% ▲5% 1,305 1,430 5,185 3,997 4,202 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 Rest. 319 339 Count 319 319
Slide 35: Pizza Hut India Gross Margin and Restaurant EBITDA
PIZZA HUT INDIA Q3 & 9M FY25 GROSS MARGIN (%) ▲50 bps 75.7% 75.6% ▼10 bps 76.1% 75.6% 75.6% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 RESTAURANT EBITDA# (%) 7.1% 4.7% ▲10 bps ▼260 bps 4.9% 4.5% 4.6% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 # Restaurant EBITDA figures are Pre-IND AS 116. 35
Slide 36: Pizza Hut India Restaurant Sales & EBITDA Trend
PIZZA HUT INDIA RESTAURANT SALES & EBITDA TREND Rest. SALES (₹MN) & Rest. EBITDA % 15 .0% YoY 67% 41% -1% Change % 13.3% 11.4% * 10 .0% 4.6% 4.6% 4.1% 4.7% 5.0 % 5.0% 4.9% 0.0 % -2.7% 1,396 1,376 1,430 1,305 5,214 5,185 1,188 -5.0 % 3,710 -10 .0% 2,218 -15 .0% FY 21 FY 22 FY23 FY24 Q3 FY24 Q4 FY24 Q
Slide 37: Sri Lanka Business Performance
Sri Lanka Business Performance
Slide 38: Sri Lanka Business: New Launches
SRI LANKA BUSINESS NEW LAUNCHES 38
Slide 39: Sri Lanka Business: Branding and Marketing
SRI LANKA BUSINESS BRANDING AND MARKETING 39
Slide 40: Sri Lanka Business: New Restaurants
SRI LANKA BUSINESS NEW RESTAURANTS KURANA KOTAHENA VAVUNIYA 40
Slide 41: Sri Lanka Channel Sales Contribution
SRI LANKA BUSINESS Q3 & 9M FY25 - CHANNEL SALES CONTRIBUTION Delivery Takeaway Dine IN Delivery Takeaway Dine IN 37% 37% 37% 37% 38% 36% 37% 35% 35% 36% 27% 26% 28% 28% 26% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 41
Slide 42: Sri Lanka Average Daily Sales
SRI LANKA BUSINESS Q3 & 9M FY25 AVERAGE DAILY SALES (LKR ‘000) SSSG% 1% 14% SSSG% 2% 1% 12% 359 341 318 305 313 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 AVERAGE DAILY SALES (INR ‘000) 103 95 79 81 81 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 Rest. 121 126 Rest. 120 126 Count Count 121 Average daily sales is
Slide 43: Sri Lanka Restaurant Sales
SRI LANKA BUSINESS Q3 & 9M FY25 RESTAURANT SALES (LKR MN) Rest. Rest. 3 5 6 7 6 Addition Addition ▲15% 4,049 ▲13% 13,123 3,514 11,305 10,038 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 Rest. Rest. Count 121 126 Count 120 121 126 RESTAURANT SALES (INR MN) ▲22% 3,397 3,162 ▲30% 1,159 2,581 892 Q3 FY24 Q3 FY2
Slide 44: Sri Lanka Gross Margin and Restaurant EBITDA
SRI LANKA BUSINESS Q3 & 9M FY25 GROSS MARGIN % 61.6% 61.8% 62.1% 61.5% ▲30 bps ▼20 bps 61.3% Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 RESTAURANT EBITDA (%)# 15.6% 17.8% 0.1 9 0.1 8 ▲360 bps ▲140 bps 0.1 7 14.2% 0.1 6 0.1 5 14.2% 13.7% 0.1 4 0.1 3 0.1 2 0.1 1 0.1 0 Q3 FY24 Q3 FY25 FY24 9M FY24 9M FY25 Ab
Slide 45: Sri Lanka Restaurant Sales & EBITDA Trend
SRI LANKA BUSINESS RESTAURANT SALES & EBITDA TREND Rest. SALES (LKR MN) & Rest. EBITDA % YoY 60% 48% Change % 22.0%* 19.6% 17.4% 15.5% 14.8% 14.2% 13.7% 13.2% 4,049 12.3% 3,707 3,514 3,549 13,123 12,166 3,085 8,229 5,145 FY 21 FY 22 FY23 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 ADS (LKR 236 298
Slide 46: DJSI ESG Ratings 2024
ESG DJSI ESG RATINGS 2024 KEY HIGHLIGHTS • Ranked No. 1 amongst QSR Brands in India for the second consecutive year • Ranked No. 7 amongst Global QSR Companies • Placed in 97th Percentile amongst Global QSR Companies • The only Indian QSR Company to publish ESG report under GRI, SASB and BRSR standa
Slide 47: Thank You
THANK YOU