Restaurants company Sapphire Foods India announced Q2FY25 results Our Q2 FY25 Consolidatedidated Restaurant Sales (Rs 6,940 million) grew by 8% with EBITDA (Rs1,152 million) at 16.6%. Demand conditions continued to be muted. In Q2 FY25 we added 19 KFC, 3 Pizza Hut in India & 1 Pizza Hut in Sri Lanka. Sapphire Foods total restaurant count is 909 as on 30th Sep 24. Consolidated Restaurant EBITDA declined by 8% YoY, and margin was at 13.7% (down by 240 bps) Consolidated EBITDA (Rs 1,152 million, 16.6%) declined YoY by 1% (down by 160 bps) | Consolidated Adj. EBITDA (Rs 590 million, 8.5%) declined YoY by 13% (down by 210 bps). Consolidated PBT before exceptional items (Rs53 million, 0.8%) | Consolidated Adj. PBT before exceptional items (Rs 143 million, 2.1%). Sapphire KFC grew restaurant sales by 9% YoY (SSSG -8%). Q2 is generally a soft quarter for Sapphire KFC owing to the number of vegetarian-only festival days and this year we have seen a greater impact in sales during such days. Owing to deleverage, Restaurant EBITDA came at 16.5% (down by 270 bps YoY). Our recipe for SSSG revival revolves around increasing occasions of consumption through value & product innovations (Chicken Rolls variants, Zinger Burger variants, Snackers), focus on day parts (lunch, late night, Wednesdays) and driving value across individual and group meal occasions. After seeing a 17% sequential QoQ upliftment in Average Daily Sales (ADS) in Q1, Pizza Hut ADS has remained stable in Q2. Restaurant Sales increased by 3% YoY (SSSG - 3%). Our Rest. EBITDA is at 4.1% post additional marketing investments. In line with brand revival strategy, we increased marketing investments behind Melts from Apr-Sep and have now launched in October the exciting Momo Mia range of pizzas and appetizers. Recovery of Sri Lanka business continues with both sales & profit improvement. Restaurant Sales grew by 10% in LKR (19% in Rs terms) while SSSG was 9% and Restaurant EBITDA margins were at 15.5% (up by 20 bps YoY). Maldives business (2 KFC & Pizza Hut each, ~ 0.4% of overall revenue) has struggled for the past 1 year and sales is down by 57% YoY due to continuing geopolitical situation. This has resulted in the business incurring losses and hence as a prudent approach, we have taken an impairment (non-cash) of Rs 114 million in Q2FY25 as an exceptional item in Consolidatedidated Financials. Result PDF
Conference Call with Sapphire Foods India Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Resturants company Sapphire Foods India announced Q1FY25 results: Q1 FY25 Consol Restaurant Sales (Rs 7,165 million) grew by 10% and EBITDA (Rs 1,242 million) 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 compared to last year, while product and marketing interventions have led to improvements in the performance of both Sapphire Pizza Hut and Sri Lanka business. In Q1FY25 we added 13 KFC and 1 Pizza Hut restaurants in India. Sapphire Foods total restaurant count is 886 as on 30th Jun 24. Consol Restaurant EBITDA margin was at 15.1% (down by 210 bps) Consol EBITDA (Rs 1,242 million, 17.3%) grew YoY by 1% (down by 150 bps) | Consol Adj. EBITDA (Rs 707 million, 9.9%) declined YoY by 8% (down by 190 bps) Consol PBT (Rs 118 million, 1.7%) | Consol Adj. PBT (Rs 239 million, 3.3%). Consol PAT was Rs 82 million (1.1%) | Consol Adj. PAT Rs 172 million (2.4%) Sapphire KFC delivered Restaurant Sales of 11% YoY (-6% SSSG) and Restaurant EBITDA at 18.8% (down by 200 bps YoY). Sapphire Pizza Hut has seen an uplift in performance with 17% sequential QoQ increase in ADS (Rs 48K Q1FY25 vs Rs 41K Q4FY24), ahead of the normal seasonal trend. It delivered Restaurant Sales growth of 3% YoY (-7% SSSG) and Restaurant EBITDA at 4.6% (down by 440 bps YoY) including additional marketing investments. The Sri Lanka business continues to improve with a strong quarter of double digit SSSG (11%) and SSTG. Restaurant Sales grew by 13% in LKR (up by 19% in Rs terms) and Restaurant EBITDA margins were at 13.2% (up by 20 bps YoY) Result PDF
Conference Call with Sapphire Foods India Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Resturants company Sapphire Foods India announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Our Q4FY24 Consol Restaurant Sales (Rs 6,297 million) grew by 13% and EBITDA (Rs 1,102 million) grew by 7%. Demand across all consumer product categories remains constrained, as reflected in Private Final Consumption Expenditure data for previous quarters released by Government of India. In Q4FY24 we added 23 KFC restaurants. Sapphire Foods total restaurant count is 872 as on 31st Mar 24. Consol. Restaurant EBITDA declined by 5% YoY, and margin was at 13.6% (down by 260 bps) Consol. EBITDA (Rs 1,102 million, 17.5%) grew YoY by 7% (down by 90 bps) | Consol Adj. EBITDA (Rs 544 million, 8.6%) declined YoY by 3% (down by 150 bps) Consol. PBT (Rs 8 million, 0.1%) | Consol Adj. PBT (Rs 83 million, 1.3%). Consol PAT was Rs 20 million (0.3%) | Consol Adj. PAT was Rs 76 million (1.2%) Sapphire KFC continues to perform well in a tough consumer demand environment. It delivered another quarter of healthy performance with restaurant sales growth of 16% YoY (-3% SSSG) and Restaurant EBITDA at 18.7% (down by 40 bps YoY). For FY24, Sapphire KFC demonstrated an industry leading all-round performance with 88 new restaurant additions, Revenue growth of 18% and Restaurant EBITDA margin of 19.7% (down by 30 bps YoY, best ever annual performance). Pizza Hut Restaurant Sales in Q4FY24 declined by 3% YoY and SSSG by 15% which considerably shrank Restaurant EBITDA margins. Coupled with our enhanced marketing investment, our Rest. EBITDA margin dropped to -2.7% in Q4FY24. Excluding the additional marketing spend, the brand broke even at the Restaurant EBITDA level. FY24 Financial Highlights: Sapphire has delivered the best all-round performance in the industry (all parameters considered): Revenue scale & growth [up by 15%], EBITDA margin [18.2%] & growth [up by 9%] and New restaurant additions [129]. Sapphire KFC highest restaurant EBITDA margin % amongst all QSR players: 19.7% Sapphire KFC and Sapphire PH being recognized as among the top 3 franchisees of Yum globally on customer metrics and operating standards. Sapphire Foods is ranked No.1 QSR in India and at 95th percentile amongst QSR globally on Dow Jones Sustainability Index (DJSI). Result PDF