Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (May 2023)
26 slides from Sapphire Foods India's investor presentation, May 18, 2023
Slide 1: Exchange filing cover letter for Corporate Presentation
Date: May 18, 2023 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 – 400001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, Subject: Corporate Presentation Pur
Slide 2: Sapphire Foods India Limited Corporate Presentation May 2023
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – MAY’23 1
Slide 3: 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 4: Table of Contents
TABLE OF CONTENTS 1 SAPPHIRE FOODS AT A GLANCE Page 4-6 2 FINANCIAL OVERVIEW Page 7-12 3 SEGMENTAL PERFORMANCE ▪ KFC INDIA Page 14-15 ▪ PIZZA HUT INDIA Page 16-17 ▪ SRI LANKA BUSINESS Page 18 ▪ UNIT ECONOMICS Page 19 4 GROWTH STRATEGY Page 20-21 5 MANAGEMENT, BOARD & SHAREHOLDING PATTERN Page 22-24
Slide 5: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 743 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (3) Sri Lanka’s Largest International QSR chain (1) 342 KFC Restaurants (2) 392 Pizza Hut Restaurants (2) 9 Taco Bell Restaurants (2) ₹ 5,592 MN Q4 FY23 Re
Slide 6: Journey of Sapphire Foods: Built a Platform of 743 Outlets
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 743 OUTLETS (1) 341 SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 286 Restaurants Cities 114 90 66 52 47 11 INDIA SRI LANKA KFC – 9 PH – 7 58 19 KFC – 15 KFC – 13 PH – 36 PH – 8 KFC – 6 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of PH – 3 KF
Slide 7: 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 8: Financial Overview
FINANCIAL OVERVIEW
Slide 9: Sapphire Foods: FY23 Highlights
SAPPHIRE FOODS: FY23 HIGHLIGHTS 2-Year CAGR FY23 - Best Ever Annual Performance 29% No. of 30% 743 Restaurants 33% 579 Highest Restaurant Sales: ₹22.6 Bn 437 FY21 FY22 FY23 Highest Adj. EBITDA: ₹2.6 Bn and Highest margin of 11.7% 32% Restaurant 22,571 69% 17,154 49% Highest Adj. PAT (before DTC): ₹1
Slide 10: Summary Consolidated Financials Q4 & FY23
SUMMARY CONSOLIDATED FINANCIALS Q4 & FY23 Particulars Q4 FY22 Q4 FY23 Change YoY FY22 FY23 Change YoY Restaurant Sales ₹ mn 4,943 5,592 13% 17,154 22,571 32% Adj. EBITDA ₹ mn 636 563 -11% 1,615 2,647 64% % 12.9% 10.1% -280 bps 9.4%* 11.7% 230 bps EBITDA ₹ mn 1,036 1,030 -1% 3,054 4,343 42% % 21.0% 1
Slide 11: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Gross Restaurant 36 154 170 39 43 57 31 Additions 743 715 743 616 658 579 437 31-Mar-21 31-Mar-22 31-Mar-23 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 Restaurant 26 12 6 2 1 0 3 Closures RESTAURANT SALES (INR mm) 32% increase 22,571 13% Increase on
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.9% 69.6% 67.6% 68.2% 67.3% 68.1% 100 200 66.7% bps bps YoY FY21 FY22 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 RESTAURANT EBITDA (₹ MN / %)# 20 17.4% bps 17.6% * 18.5% 18.1% 16.8% 16.2% 13.0% 210 3,929 3,025 bps 1,321 1,004 940 1,070 910 YoY FY21 FY22 FY23 Q1FY23
Slide 13: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 13.3% 12.4% 9.4% * 11.1% 10.1% 2,647 280 3.8% 1,614 230 bps 382 bps 722 624 738 563 YoY FY21 FY22 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 EBITDA (₹ MN / %) 19.2% 20.5% 17.8% * 18.4% 18.4% 19.6% 4,343 17.6% 3,054 260 1,787 140 bps bps 1,114 1,032 1,16
Slide 14: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 15: KFC Brand Priorities
KFC BRAND PRIORITIES Enhance Fried Value Chicken Category Craveable Taste + Relevance - “Let’s KFC” communication + ‒ Innovation: Chizza, Chicken Popcorn with Maggi, Popcorn Nachos + - Entry value innovation: Chicken Rolls - Abundant Value: Bucket Options campaign Frictionless Customer Improve Exper
Slide 16: 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 MAR 31, 2023 / FOR FY20 / FOR FY21 / FOR FY22 /FOR FY23 Total Restaurant Count 187 203 263 341 Average Daily Sales per 130 106 130 135 Restaurant (INR‘000s) Restaurant Related 7,753 5,897 24% 1
Slide 17: Pizza Hut Brand Priorities
PIZZA HUT BRAND PRIORITIES Build Top-of-Mind Taste Leadership in Value Pizza category + Awareness - Enhance marketing investments: + - Innovation: 10 New Pan Pizzas, 2 new Pastas, Keema Garlic + - Entry level value: Flavor Fun Pizzas - Attractive Meal options TV campaign Bread Operational Improve Fr
Slide 18: 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 MAR 31, 2023 / FOR FY20 / FOR FY21 / FOR FY22 / FOR FY23 Total Restaurant Count 174 162 219 286 Average Daily Sales per Restaurant (INR‘000s) 58 48 57 58 Restaurant Related 41% Revenue (i
Slide 19: 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 MAR 31, 2023 / FOR FY20 / FOR FY21 / FOR FY22 / FOR FY23 Total Restaurant Count 64 70 95 114 Average Daily Sales per 92 94 108 72 Restaurant (INR‘000s) YoY Restaurant Related 52% (IN
Slide 20: 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 FY23 FY19 FY23 Average Daily Sales per Restaurant 125 135 61 58 (in ₹ ’000) FY19
Slide 21: 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. 2,623 Mn as on 31st Mar 23 20
Slide 22: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 23: Management Team: Right People in Key Seats
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Ashu Khanna Finance KFC Pizza Hut People Supply Chain Technology Business Projects Legal Development Source: Company data 22
Slide 24: Board of Directors
BOARD OF DIRECTORS OUR DIRECTORS Nobert Fernandes Non-Executive Nominee Director INTERNAL AUDIT STATUTORY AUDIT ESG Source: Company data 23
Slide 25: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 31st Mar 2023) % Holding Promoters & Promoter Group 44.9 Foreign Company 4.8 Foreign Portfolio Investors / Non-Resident Indians 16.0 Domestic 33.3 Mutual Funds 20.9 Insurance Companies 4.6 Alternate Investment Funds 2.0 Resident Individuals 5.8 Others
Slide 26: 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
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