Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (July 2024)
27 slides from Sapphire Foods India's investor presentation, Jul 31, 2024
Slide 1: Exchange filing cover letter: Corporate Presentation
Date: 31st July 2024 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 P
Slide 2: Sapphire Foods India Limited Corporate Presentation
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PFebruary RESENTATION 2022 – JUL’24 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 6 ESG Page 22 7 MANAGEMENT, BOARD & SHAREHOLDING PATTE
Slide 5: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE YUM’s Franchisee Operator in 886 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (2) Sri Lanka’s Largest International QSR chain (1) 444 KFC Restaurants (2) 433 Pizza Hut Restaurants (2) 9 Taco Bell Restaurants (2) ₹ 7,165 MN Q1FY25 Res
Slide 6: Journey of Sapphire Foods: Geographical Presence
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 886 OUTLETS (1) 442 SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1) 320 Restaurants Cities 112 120 76 52 61 15 INDIA SRI LANKA KFC – 10 6 PH – 6 7 66 28 KFC – 22 KFC – 16 PH – 30 PH – 12 KFC – 10 ~ KFC and Pizza Hut Brands Operate in States that cover 56% of P
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: 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 10: 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 11: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW NUMBER OF RESTAURANTS Net Restaurant 164 129 35 36 36 22 14 Additions 872 778 814 850 872 886 743 31-Mar-23 31-Mar-24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 RESTAURANT SALES (INR mm) 15% increase 25,880 10% Increase 22,571 on Y-O-Y 17,154 7,165 6,526 6,414 6,643 6,2
Slide 12: Profitability Overview
PROFITABILITY OVERVIEW GROSS MARGIN % 69.6% 68.9% 68.7% 68.9% 69.0% 69.1% 68.8% 10 67.6% bps YoY FY22 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 RESTAURANT EBITDA (₹ MN / %)# 15.8% 210 bps 17.4% 17.6% * YoY 17.2% 16.1% 15.1% 1,250 1,150 16.0% 13.6% 3,929 4,092 1,050 1,084 4% 3,025 950 1,128 8
Slide 13: Profitability Overview
PROFITABILITY OVERVIEW ADJ. EBITDA (₹ MN / %)# 11.7% 10.5% 190 bps 9.4% * 11.8% 10.6% 10.9% 9.9% YoY 2,647 2,717 8.6% 1,514 772 678 722 707 8% 544 YOY FY22 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 EBITDA (₹ MN / %) 18.8% 19.2% 18.2% 18.4% 150 18.2% 17.5% 17.3% bps 17.8% * 4,718 YoY 4,343 1,
Slide 14: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 15: 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 16: 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 JUN 30, 2024 / FOR FY22 /FOR FY23 2024 /FOR FY24 /FOR Q1FY25 Total Restaurant Count 263 341 429 442 Average Daily Sales per Restaurant (INR‘000s) 130 135 125 122 Restaurant Related 10,349 11% Revenu
Slide 17: Update on Pizza Hut Action Plan
UPDATE 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. 16
Slide 18: 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 JUN 30, 2024 / FOR FY22 / FOR FY23 2024 / FOR FY24 / FOR Q1FY25 Total Restaurant Count 219 286 319 320 Average Daily Sales per Restaurant (INR‘000s) 57 58 46 48 Restaurant Related 3% Revenue (
Slide 19: 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 JUN30, 2024 / FOR FY22 / FOR FY23 / FOR FY24 / FOR Q1FY25 Total Restaurant Count 95 114 120 120 Average Daily Sales per Restaurant (INR‘000s) 108 72 79 89 YoY Restaurant Related 19% I
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 FY24 FY19 FY23 FY24 Average Daily Sales per Restaurant 125 135 125 61 58 46
Slide 21: 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 22: Scalability in Food Business
SCALABILITY IN FOOD BUSINESS 21
Slide 23: 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 24: 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 25: Board of Directors
BOARD OF DIRECTORS OUR DIRECTORS Sunil Chandiramani Sanjay Purohit Sumeet Narang Deepa Wadhwa Vinod Nambiar Vikram Agarwal Annu Aggarwal Nobert Fernandes Kabir Thakur Chairman and Whole Time Director Non-Executive Independent Non-Executive Non-Executive Independent Non-Executive Non-Executive Indepe
Slide 26: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (As on 30th Jun 2024) % Holding Promoters & Promoter Group 30.8 Foreign Portfolio Investors / Non-Resident Indians 32.0 Domestic – Mutual Funds Insurance Companies 30.2 AIF, Resident Individuals & Others 7.0 Total 100.0 Source: Company data 25
Slide 27: Thank You
THANK YOU Company: Investor Relations Partner: Sapphire Foods India Limited Orient Capital (a division of Link Group) CIN: L55204MH2009PLC197005 Mr. Bhavya Shah Mr. Rahul Kapoor Email ID: bhavya.shah@linkintime.co.in Email ID: rahul.kapoor@sapphirefoods.in +91 8082748577 www.sapphirefoods.in www.ori
Sapphire Foods India — Investor Presentation (July 2024) on 6ix