Sapphire Foods India Limited — PPTs, 07-05-2025: Investor Presentation

1. Financial Highlights:

Sapphire Foods’ FY25 revenue grew 11% to ₹2,875 Cr, with EBITDA up 4% to ₹492 Cr (17.1% margin), though adjusted EBITDA fell 4% to ₹262 Cr (9.1%). Consolidated PAT was modest at ₹16.7 Cr (0.6%), impacted by impairments. Q4 saw 13% revenue growth to ₹710 Cr; EBITDA remained stable at ₹113 Cr (16%), while adjusted EBITDA dropped 7% to ₹51 Cr (7.2%). KFC India led growth, with revenue up 11% to ₹1,904 Cr and 17.3% restaurant EBITDA margin despite a 240 bps dip. Pizza Hut India grew 5% to ₹545 Cr but recorded negative EBITDA (–4.6%). Sri Lanka delivered strong LKR revenue growth of 14% (~24% in INR) with a 15.4% EBITDA margin. Total restaurants rose by 91 to 963 locations.

2. Strategic Initiatives & Growth Drivers:

KFC added 73 new stores (total 502), boosted by its “Epic Core Variety X” campaign and expanded own delivery platform with 50.7 million app downloads. Digital investments include 238 KFC kiosks and 2.1 million monthly app users. Pizza Hut refreshed its “Juicylicious” pizza range targeting revival, focusing marketing efforts in Tamil Nadu. Sri Lanka network growth added 7 stores with strong same-store sales growth and operational improvements.

3. Business Developments:

No acquisitions or partnerships reported; growth driven by organic expansion. Product innovation continues with KFC’s premium Gold Zinger and Pizza Hut’s revamped menu, emphasizing differentiation. Sri Lanka market momentum strengthens profitability and sales.

4. Market Position & Competitive Advantage:

Sapphire Foods holds the largest international QSR footprint in Sri Lanka and ranks India’s No.1 QSR by the Dow Jones Sustainability Index, maintaining a top-10 global rank. Recognized as the world’s best franchisee for KFC and Pizza Hut brands, the company leverages scale and omni-channel strengths to sustain competitive advantages.

5. Investor Implications:

Robust network expansion and KFC’s steady performance signal positive growth potential. Sri Lanka’s turnaround offers an attractive emerging market opportunity. Pizza Hut’s recovery poses medium-term execution challenges. Margin pressures from operating leverage and delivery mix require attention, but digital initiatives and value campaigns lay groundwork for normalization. Investors should monitor profitability trends alongside growth avenues.