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Restaurants company Sapphire Foods India announced Q3FY24 results:
Financial Performance:
- For Q3FY24, Sapphire Foods reported consolidated Restaurant Sales of Rs 6,643 million, marking a 12% increase from the previous year.
- The company's EBITDA for the same period was Rs 1,225 million, which is a 5% growth YoY.
- During Q3FY24, the Consolidated PBT (Profit Before Tax) was listed at Rs 140 million, a 58% decline from the previous year.
- The Consolidated PAT (Profit After Tax) stood at Rs 98 million, experiencing a significant decrease from the previous year's figure.
Brand-specific Performance:
- KFC India's robust performance was highlighted with a 16% YoY sales growth and a restaurant EBITDA margin of 20.1%.
- On the contrary, Pizza Hut India faced challenges with a 4% decline in Restaurant Sales and a significant dip in restaurant EBITDA to 4.6%.
- The Sri Lanka market showed signs of recovery with a 7% growth in Restaurant Sales in local currency.
Expansion and Growth:
- A total of 36 new restaurants were added during the quarter, taking the count to 850. Out of these, 25 were KFC, 8 Pizza Hut in India, and 3 Pizza Hut in Sri Lanka.
- KFC India is on target for doubling its restaurant count over approximately three years, using December 2021 as the base count.
Operational Highlights:
- Gross Margin percentages were reported as an improvement in both KFC India and Pizza Hut India, with Sri Lanka also showing positive margins.
- The company emphasized product innovation and value, illustrated by the introduction of new menu items across the KFC brand.
- Pizza Hut emphasized the need for revival through product innovation, enhanced marketing investments, and operational improvements.
Digital and Customer Experience:
- KFC India accentuated its focus on digital kiosks and the KFC app, with an emphasis on seamless customer experiences.
- Pizza Hut India also geared efforts toward improving its digital interface, highlighting efforts like extended delivery hours and operational excellence in online ordering.
Sustainability and Governance:
- Sapphire Foods demonstrated its commitment to sustainability and ethical business practices with a high ESG score from S&P Global, placing it first among QSR brands in India.
