Sapphire Foods India Limited has informed the Exchange about Investor Presentation
:
th
Date
11
February 2025
National Stock Exchange of India Limited To,
BSE Limited
Exchange Plaza, Block G, C/1, Bandra Kurla Complex, Bandra (E), Mumbai – 400051
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001
Symbol: SAPPHIRE
Scrip Code: 543397
Dear Sir/Madam, Subject: Corporate Presentation
Pursuant to the Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed herewith Corporate Presentation.
Corporate
The website also (https://www.sapphirefoods.in/investors-relation/corporate-presentation) under FY25 Q3 section.
Presentation
Company’s
available
on
is
Request you to kindly take the same on record.
For Sapphire Foods India Limited Thanking you,
Sachin Dudam Company Secretary and Compliance Officer
Encl: a/a
Sapphire Foods India Limited CIN: L55204MH2009PLC197005
+91 022 67522300 info@sapphirefoods.in www.sapphirefoods.in 702, Prism Tower, A-Wing, Mindspace, Link
Road, Goregaon (W), Mumbai- 400062
Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation CORPORATE PRESENTATION – FEB’25
February 2022
1
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 securities, and shall not form the basis or be
relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or
warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this
Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or
any omission from, this Presentation is expressly excluded
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and
collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the
economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy,
the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in Restaurant Sales, income or cash flows, the
Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could
differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information
contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the
Company is not responsible for such third party statements and projections.
2
TABLE OF CONTENTS
1
2
3
4
6
7
SAPPHIRE FOODS AT A GLANCE
FINANCIAL OVERVIEW
SEGMENTAL PERFORMANCE KFC INDIA PIZZA HUT INDIA SRI LANKA BUSINESS UNIT ECONOMICS
▪ ▪ ▪ ▪
GROWTH STRATEGY
ESG
MANAGEMENT, BOARD & SHAREHOLDING PATTERN
Page 4-6
Page 7-12
Page 14-15 Page 16-17 Page 18 Page 19
Page 20-21
Page 22
Page 23-25
3
SAPPHIRE FOODS AT A GLANCE
YUM’s Franchisee Operator in India, Sri Lanka and Maldives
Sri Lanka’s Largest International QSR chain (1)
₹ 7,550 MN Q3FY25 Restaurant Sales
18.5% [18.4%] Q3FY25 EBITDA margin ₹ 1,398 MN [1,225] Q3FY25 EBITDA
17.5% [18.5%] 9M FY25 EBITDA margin ₹ 3,792 MN [3,615] 9M FY25 EBITDA
963 Total Restaurants Across India, Sri Lanka and Maldives (2)
497 KFC Restaurants (2) 456 Pizza Hut Restaurants (2) 10 Taco Bell Restaurants (2)
Omni Channel Mix (3)
Dine In, 35%
Delivery, 43%
Take Away, 22%
Source: Company data, Technopak industry report (1) In terms of Restaurant Sales for FY21 and number of restaurants operated as of March 31, 2021; (2) As of Dec 31, 2024; (3) Pertains to Q3 FY25
4
SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (1)
JOURNEY OF SAPPHIRE FOODS BUILT A PLATFORM OF 963 OUTLETS (1)
496
339
Restaurants Cities
128
80
126
52
INDIA
SRI LANKA
~ KFC and Pizza Hut Brands Operate in States that cover 56% of GDP (2) KFC and Pizza Hut present in 10 and 11 states of India respectively
KFC and Pizza Hut present in 5 and 6 of the Top 8 cities of India respectively
Top 8 Cities in India contribute 87% of
Chain Food Services Market (3)
Pizza Hut, KFC Pizza Hut, Taco Bell
Pizza Hut only
KFC only
30 Cities where 425 restaurants of both KFC and Pizza Hut are operated
Maldives
KFC 1 PH 1
PH – 68 TB – 2
Sri Lanka PH – 116 TB – 10
Source: Company data, Technopak Industry Report (1) As of Dec 31, 2024. Includes 2 restaurants in Maldives (2) GDP contribution of states In FY19 where Pizza Hut and KFC restaurants are located; (3) In FY20
5
67
18
KFC – 6 KFC – 11 PH – 7 PH – 6
70
31
KFC – 26 PH – 33
KFC – 17 PH – 14
KFC – 10 PH – 4
KFC – 112 PH – 90
28
7
64
8
KFC – 134 PH – 58
27
THE SAPPHIRE STORY
Two global brands (KFC & Pizza Hut) with Scale & PAT profitability among Top 3 QSR operators
Capability and capital to rapidly drive organic and inorganic growth plans
Value based work culture, high on governance enabled by professional management, board and promoters
Execution Mindset Great Customer experience along with Superior Back-end operational excellence
Optimal capital allocation drives new restaurant expansion model - focus on smaller sized omni-channel restaurants
6
FINANCIAL OVERVIEW
SAPPHIRE FOODS: 3-YEAR SCORECARD
No. of Restaurants
Restaurant Sales ₹ Mn
Adj. EBITDA ₹ Mn / %
Adj. PAT ₹ Mn# / %
33%
69%
323%
437
FY21
10,160
FY21
3.8%
382
FY21
-8.3%
FY21 -840
579
FY22
17,154
FY22
9.4%
*
1,615
FY22
2.7%
*
457
FY22
743
FY23
28%
32%
17%
15%
872
FY24
22,571
25,880
37%
FY23
11.7%
FY24
10.5%
64%
3%
2,647
2,717
207%
FY23
6.2%
1,402
FY23
-44%
FY24
3.0%
786
FY24
92%
NA
Adj. EBITDA and Adj. PAT is before Ind-AS 116 adjustments * Adj. EBITDA and Adj. PAT for FY22 have been normalized for additional incentive from Yum accrued in that year # Adj PAT excludes Deferred Tax Credit (DTC) of ₹1253 mn towards carried forward losses in SFIL in FY23. Post DTC the Adj PAT is ₹2,654 Mn
3-Year CAGR
26%
Relentless Execution. Grit. Performance.
FY24 Highlights
• Sapphire has delivered the best all-round performance in the QSR industry (all parameters considered): Revenue scale & growth [ 15%], Adj. EBITDA margin [10.5%] & growth [ 3%] and New restaurant additions [129].
• Sapphire KFC delivered highest ever annual
restaurant EBITDA margin %: 19.7%
• Sapphire KFC and Pizza Hut 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).
• We achieved our best ever employee
engagement score since inception and placed at 88th percentile amongst all companies surveyed worldwide by Gallup.
8
SUMMARY CONSOLIDATED FINANCIALS Q3 FY25
#Adj. EBITDA and Adj. PAT is before Ind-AS 116 adjustments * Adj. PBT & PBT of 9M FY25 are before the exceptional items of ₹114 Mn
9
ParticularsQ3 FY25Q3 FY249M FY259M FY24FY24Restaurant Sales ₹ mn 7,5506,64314%21,65519,58211%25,880Adj. EBITDA ₹ mn81172212%2,1092,172-3%2,717%10.7%10.9%-20 bps9.7%11.1%-140 bps10.5%EBITDA ₹ mn1,3981,22514%3,7923,6155%4,717%18.5%18.4%10 bps17.5%18.5%-100 bps18.2%Adj. PBT ₹ mn *2552560%637973-35%1,057%3.4%3.8%-40 bps2.9%5.0%-210 bps4.1%PBT ₹ mn *16814120%340691-51%699%2.2%2.1%10 bps1.6%3.5%-190 bps2.7%Restaurant Additions543691107129Change YoYChange YoY OPERATIONAL & FINANCIAL OVERVIEW
Net Restaurant Additions
NUMBER OF RESTAURANTS
164
129
36
22
14
743
872
850
872
886
23
909
54
963
31-Mar-23
31-Mar-24
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
RESTAURANT SALES
(INR mm)
22,571
17,154
15% increase 25,880
6,643
6,297
7,165
6,940
14% Increase on Y-O-Y
7,550
FY22
FY23
FY24
Q3FY24
Q4FY24
Q1FY25
Q2FY25
Q3FY25
10
PROFITABILITY OVERVIEW
GROSS MARGIN %
69.6%
67.6%
68.9%
69.0%
69.1%
68.8%
69.0%
68.7%
30 bps YoY
FY22
FY23
FY24
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
RESTAURANT EBITDA (₹ MN / %)#
17.6%
*
3,025
17.4%
15.8%
3,929
4,092
16.0%
1,067
1,250
1,150
1,050
950
850
750
650
13.6% 861
15.1%
1,084
13.7% 954
60 bps YoY
15.4%
1,164
9% YOY
FY22
FY23
FY24
Q3FY24
Q4FY24
Q1FY25
Q2FY25
Q3FY25
KEY INITIATIVES
Zero-based cost budgeting leading to permanent cost reduction
PACE SETTER program for benchmarking cost amongst restaurants
Optimization of restaurant size
Increase in revenue from Delivery from 21% in FY19 to 43% in Q3FY25
# Restaurant EBITDA is before Ind-AS 116 adjustments *FY22 excludes additional incentives of 1.1%
11
PROFITABILITY OVERVIEW
ADJ. EBITDA (₹ MN / %)#
11.7%
10.5%
2,647
2,717
9.4%
*
1,514
10.9%
722
8.6%
544
9.9%
707
8.5%
590
20 bps YoY
10.7%
811
12% YOY
FY22
FY23
FY24
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
EBITDA (₹ MN / %)
19.2%
4,343
18.2%
4,718
18.4%
1,225
17.8%
*
3,054
17.5%
1,102
17.3%
1,242
16.6% 1,152
18.5%
1,398
10 bps YoY
14% YOY
FY22
FY23
FY24
Q3FY24
Q4FY24
Q1FY25
Q2FY25
Q3FY25
KEY INITIATIVES
Zero-based cost budgeting leading to permanent cost reduction
PACE SETTER program for benchmarking cost amongst restaurants
Optimization of restaurant size
Increase in revenue from Delivery from 21% in FY19 to 43% in Q3FY25
# Adj. EBITDA is before Ind-AS 116 adjustments *FY22 excludes additional incentives of 1.1%
12
SEGMENTAL PERFORMANCE
KFC BRAND PRIORITIES Fried Chicken Category Relevance | Craveable taste | Value
+
Enhance Fried Chicken Category Relevance - Increase KFC consumer base by
popularizing Core Variety offerings (Chicken Bucket, Boneless, Zinger Burger, Rolls)
- “Taste The Epic” campaign
+
Craveable Taste ‒ Increase frequency of
consumption by building day parts (lunch, Wednesday, late night) & product innovation (Double Down burger, Rolls variants)
+
Frictionless Customer Experience - Digital Kiosks - KFC App
+
Operational Excellence - >4.0 ratings across Swiggy,
Zomato & Google
- Implemented dynamic kitchen
planning tool to product availability and reduce wastage
+
+
Value - 3 Tier value structure:
• Introduce Core at ₹ 99/- • Enhance Individual meal
offering at ₹149/-
• Retain strong offering of Group meal at ₹ 399/-
Improve Accessibility - Continue current pace of
expansion (70-80 stores per year)
14
CORE COMPOSITION OF OUR BUSINESS: KFC INDIA
AS OF MAR 31, 2022 / FOR FY22
AS OF MAR 31, 2023 /FOR FY23
AS OF MAR 31, 2024 /FOR FY24
AS OF DEC 31, 2024 /FOR 9MFY25
Total Restaurant Count
Average Daily Sales per Restaurant (INR‘000s)
Restaurant Related Revenue (in INR mm)
263
130
341
135
429
125
496
116
10,349
14,529
17,157
14,246
11% YoY
Restaurant EBITDA (in %)
18.7%*
19.4%
19.7%
17.9%
210 bps YoY
Net restaurant additions of 35 in Q3FY25.
Source: Company data *Restaurant EBITDA % is Normalized for additional incentives accrued in that period and YoY comparison is with Normalized numbers of FY24
15
PIZZA HUT: ACTION UPDATE ON DINE-IN LED OMNI CHANNEL CUSTOMER PROMISE
+
Taste Superiority Several innovations launched: - Melts: “folded” handheld pizza - Momo Mia Pizza - Thin & Crispy - Pasta range - New appetizers range (Fries,
Momos)
+
Value - Competitive pricing across A-la- carte, Meal Options and Sub- ₹100/- pizza range
+
+
Differentiated Dine-In Experience ‒ Delivering CDR-like (Casual
Dine-In Restaurant) customer service and comfortable ambience with QSR speed of service & value
+
Delivery Experience - Delivering Hot n Fresh Pizzas (< 20 mins from out of Oven) through Dragon Tail kitchen planning tool
- Achieved >4.0 avg. rating in Swiggy, Zomato & Google across all stores
Consumer Awareness & Consideration - Doubled spends on TV, OTT,
Digital & OOH segments vs last year along with product innovations
+
Improve Accessibility & Unit economics - Cautious store expansion
approach continues till we see improvement in performance metrices
While there is tangible action across all the elements, improving Consumer Awareness/Consideration & Sales will require sustained support over medium term especially in this muted demand and competitive environment
16
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA
AS OF MAR 31, 2022 / FOR FY22
AS OF MAR 31, 2023 / FOR FY23
AS OF MAR 31, 2024 / FOR FY24
AS OF DEC 31, 2024 / FOR 9MFY25
Total Restaurant Count
Average Daily Sales per Restaurant (INR‘000s)
219
57
286
58
Restaurant Related Revenue (in INR mm)
3,710
5,214
Restaurant EBITDA (in %)
11.4%
13.3%
319
46
5,185
4.9%
339
48
4,202
5% YoY
4.5%
260 bps YoY
Net restaurant additions of 16 in Q3FY25.
Source: Company data *Restaurant EBITDA % is Normalized for additional incentives accrued in that period.
17
CORE COMPOSITION OF OUR BUSINESS: SRI LANKA OPERATIONS
AS OF MAR 31, 2022 / FOR FY22
AS OF MAR 31, 2023 / FOR FY23
AS OF MAR31, 2024 / FOR FY24
AS OF DEC 31, 2024 / FOR 9MFY25
95
108
114
72
120
79
126
95
2,983
2,716
3,397
3,162
YoY 22% INR) 13% (LKR)
Total Restaurant Count
Average Daily Sales per Restaurant (INR‘000s)
Restaurant Related Revenue (in INR mm)
Restaurant EBITDA (in %)
22.0%
14.8%
13.7%
15.6%
YoY 140 bps
Net restaurant additions of 5 in Q3FY25
Source: Company data *Restaurant EBITDA % is Normalized for additional incentives accrued in that period.
18
UNIT ECONOMICS
Avg Size of Restaurant (in Sq. ft.)
Average Daily Sales per Restaurant (in ₹ ’000)
Restaurant EBITDA %
INDIA
INDIA
As of 31-Mar-19
Current
As of 31-Mar-19
2,736
FY19
125
FY19
12.7%
~ 1,500
Reduction in Avg Restaurant size ~45%
FY23
FY24
135
125
FY23
FY24
19.4%
19.7%
2,427
FY19
61
FY19
7.5%
Current
~ 1,200
Reduction in Avg Restaurant size ~45%
FY23
FY24
58
46
FY23
FY24
13.3%
4.9%
In Pizza Hut 1,000 sqft. restaurants rolled out for densification. We expect this will be around 10-15% of our new restaurants going forward
19
WELL POSITIONED TO CAPTURE FUTURE OPPORTUNITIES
Accelerate conversion from unorganized food services to KFC and PH brands
rowth
G c ni
Orga
Pursue
I n o r g
anicGrowth
Explore acquisition of high quality and scalable QSR and food brands in existing and new geographies..
Capability + Capital Cash net of debt of Rs. 2,549 Mn as on 30th Sep 24
20
SCALABILITY IN FOOD BUSINESS
21
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 standards for the third consecutive year
Source: https://www.spglobal.com/esg/scores/results?cid=6578587
22
MANAGEMENT TEAM
RIGHT PEOPLE IN KEY SEATS
MANAGEMENT TEAM WITH DIVERSE EXPERIENCES
Deepak Taluja CEO – KFC
Vikrant Vohra CEO – Pizza Hut
Vijay Jain CFO
Nandita Bapat Head - Projects
Priya Adiseshan Chief People
Officer
Amar Patel Chief Tech Officer
Ashu Khanna Head Supply Chain
Niraj Patil Head Legal and Liaison
Puneet Bhatia Head Business Development
Source: Company data
23
BOARD OF DIRECTORS
OUR DIRECTORS
Sunil Chandiramani Chairman and Independent Director
Sanjay Purohit Whole Time Director and Group CEO
Sumeet Narang Non-Executive Nominee Director
Deepa Wadhwa Independent Director
Vinod Nambiar Non-Executive Nominee Director
Vikram Agarwal Non-Executive Nominee Director
Annu Aggarwal Independent Director
Rohitt Mutthoo Non-Executive Nominee Director
Kabir Thakur Non-Executive Nominee Director
INTERNAL AUDIT
STATUTORY AUDIT
ESG
Protiviti
SRBC & Co LLP
Assisted by PWC
Source: Company data
24
SHAREHOLDING PATTERN
Shareholding Pattern (As on 31st Dec 2024)
% Holding
Promoters & Promoter Group
Foreign Portfolio Investors / Non-Resident Indians
Domestic – Mutual Funds Insurance Companies
AIF, Resident Individuals & Others
Total
26.1
31.0
36.0
6.9
100.0
Source: Company data
25
THANK YOU
Company:
Investor Relations Partner:
Sapphire Foods India Limited CIN: L55204MH2009PLC197005
Mr. Kaushik Vankadkar
Vogabe Advisors Private Limited Ms. Himani Singla
Email ID: sapphirefoods@vogabe.com
Email ID: kaushik.vankadkar@sapphirefoods.in
www.sapphirefoods.in
+91 9569926021
www.vogabe.com