Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (October 2024)
26 slides from Sapphire Foods India's investor presentation, October 2024
Slide 1: Sapphire Foods India Corporate Presentation Oct'24
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – OCT’24 1
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 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 6 ESG Page 22 7 MANAGEMENT, BOARD & SHAREHOLDING PATTE
Slide 4: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 909 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (2) Sri Lanka’s Largest International QSR chain (1) 463 KFC Restaurants (2) 437 Pizza Hut Restaurants (2) 9 Taco Bell Restaurants (2) ₹ 6,940 MN Q2FY25 Res
Slide 5: Journey of Sapphire Foods: Built a Platform of 909 Outlets
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 909 OUTLETS (1) 461 SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 323 Restaurants Cities 116 121 78 52 63 16 INDIA SRI LANKA KFC – 10 6 PH – 6 7 67 28 KFC – 23 KFC – 16 PH – 31 PH – 13 KFC – 10 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of P
Slide 6: 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 7: Financial Overview
FINANCIAL OVERVIEW
Slide 8: Sapphire Foods: 3-Year Scorecard
SAPPHIRE FOODS: 3-YEAR SCORECARD 3-Year Relentless Execution. Grit. CAGR Performance. 17% No. of 28% 26% 33% 743 872 FY24 Highlights Restaurants 579 437 • Sapphire has delivered the best all-round FY21 FY22 FY23 FY24 performance in the QSR industry (all 15% parameters considered): Revenue scale & 32
Slide 9: Summary Consolidated Financials Q2 FY25
SUMMARY CONSOLIDATED FINANCIALS Q2 FY25 Particulars Q2 FY25 Q2 FY24 Change YoY 6M FY25 6M FY24 Change YoY FY24 Restaurant Sales ₹ mn 6,940 6,414 8% 14,105 12,939 9% 25,880 Adj. EBITDA ₹ mn 590 678 -13% 1,298 1,450 -10% 2,717 % 8.5% 10.6% -210 bps 9.2% 11.2% -200 bps 10.5% EBITDA ₹ mn 1,152 1,166 -1%
Slide 10: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Net Restaurant 164 129 36 36 22 14 23 Additions 872 814 850 872 886 909 743 31-Mar-23 31-Mar-24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 RESTAURANT SALES (INR mm) 15% increase 25,880 8% Increase on 22,571 Y-O-Y 17,154 7,165 6,940 6,414 6,643 6,29
Slide 11: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.6% 68.9% 68.9% 69.0% 69.1% 68.8% 69.0% 10 67.6% bps YoY FY22 FY23 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 RESTAURANT EBITDA (₹ MN / %)# 15.8% 240 bps 17.4% 17.6% * YoY 1,150 1,100 16.1% 16.0% 15.1% 4,092 1,050 1,084 13.7% 3,929 1,000 3,025 950 13.6% 954
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 10.5% 210 bps 9.4% * 10.6% 10.9% YoY 2,717 9.9% 8.5% 2,647 8.6% 1,514 678 722 707 590 13% 544 YOY FY22 FY23 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 EBITDA (₹ MN / %) 18.2% 160 19.2% 18.2% 18.4% bps 17.8% * 17.5% YoY 4,718 17.3% 4,343 1,225 1,
Slide 13: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 14: KFC Brand Priorities
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value Enhance Fried Chicken Category Craveable Taste Value + Relevance - Build lunch day part occasions + ‒ Launch of Chicken Roll sauce variants (Classic, Korean, Thai, Tandoori, Spicy) + - Address critical price points of ₹9
Slide 15: Core Composition of Our Business: KFC India
CORE COMPOSITION OF OUR BUSINESS: KFC INDIA AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR 31, AS OF SEP 30, 2024 / FOR FY22 /FOR FY23 2024 /FOR FY24 /FOR 6MFY25 Total Restaurant Count 263 341 429 461 Average Daily Sales per Restaurant (INR‘000s) 130 135 125 116 Restaurant Related 10,349 10% Revenu
Slide 16: Update on Pizza Hut Action Plan
UPDATE ON PIZZA HUT ACTION PLAN Actionable Status Comment A. Build Brand: Launched Melts, Thin Crust Pizza and revamped Pasta range in Mar-24 - Product Innovation Launched Momo Mia Pizza & Appetizers in Oct-24 - Enhanced Marketing Doubled spends on TV, OTT, Digital & OOH segments vs last year Invest
Slide 17: Core Composition of Our Business: Pizza Hut India
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR 31, AS OF SEP 30, 2024 / FOR FY22 / FOR FY23 2024 / FOR FY24 / FOR 6MFY25 Total Restaurant Count 219 286 319 323 Average Daily Sales per Restaurant (INR‘000s) 57 58 46 48 Restaurant Related 3% Revenue (
Slide 18: Core Composition of Our Business: Sri Lanka Operations
CORE COMPOSITION OF OUR BUSINESS: SRI LANKA OPERATIONS AS OF MAR 31, 2022 AS OF MAR 31, 2023 AS OF MAR31, 2024 AS OF SEP 30, 2024 / FOR FY22 / FOR FY23 / FOR FY24 / FOR 6MFY25 Total Restaurant Count 95 114 120 121 Average Daily Sales per Restaurant (INR‘000s) 108 72 79 92 YoY Restaurant Related 19%
Slide 19: 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 FY24 FY19 FY23 FY24 Average Daily Sales per Restaurant 125 135 125 61 58 46
Slide 20: Well Positioned to Capture Future Opportunities
WELL POSITIONED TO CAPTURE FUTURE OPPORTUNITIES Pu h Explore t rs nic Grow Accelerate acquisition of ue conversion from high quality and Inorgani unorganized food scalable QSR and services to KFC food brands in a and PH brands existing and new rg c O Gr owth geographies.. Capability + Capital Cash n
Slide 21: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 22: 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 23: Management Team
MANAGEMENT TEAM RIGHT PEOPLE IN KEY SEATS MANAGEMENT TEAM WITH DIVERSE EXPERIENCES Deepak Taluja Vikrant Vohra CEO – KFC Vijay Jain Nandita Bapat Priya Adiseshan Amar Patel Ashu Khanna Niraj Patil Puneet Bhatia CEO – Pizza Hut CFO Head - Projects Chief People Chief Tech Officer Head Supply Head Lega
Slide 24: Our Directors
BOARD OF DIRECTORS OUR DIRECTORS Sunil Chandiramani Sanjay Purohit Sumeet Narang Deepa Wadhwa Vinod Nambiar Vikram Agarwal Annu Aggarwal Rohitt Mutthoo Kabir Thakur Chairman and Whole Time Director Non-Executive Independent Non-Executive Non-Executive Independent Non-Executive Non-Executive Independ
Slide 25: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 30th Sept 2024) % Holding Promoters & Promoter Group 26.2 Foreign Portfolio Investors / Non-Resident Indians 31.9 Domestic – Mutual Funds Insurance Companies 35.8 AIF, Resident Individuals & Others 6.2 Total 100.0 Source: Company data 25
Slide 26: Thank You
THANK YOU Company: Investor Relations Partner: Sapphire Foods India Limited Vogabe Advisors Private Limited CIN: L55204MH2009PLC197005 Ms. Himani Singla Mr. Kaushik Vankadkar Email ID: sapphirefoods@vogabe.com Email ID: kaushik.vankadkar@sapphirefoods.in +91 9569926021 www.sapphirefoods.in www.vogab
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