Sapphire Foods on Friday posted a profit jump of 411.2 per cent to Rs 135.48 crore in the fourth quarter of FY23 as compared to Rs 26.50 crore in the same quarter last year. It posted revenue from operations at Rs 560.41 crore, up12.8 per cent from Rs 496.83 in the fourth quarter of FY22. Sapphire Foods’ India revenue delivered growth of 23 per cent. The company EBITDA stood at Rs 98.2 crore, down 1.5 per cent on-year. “
Sapphire Foods also announced that Paul Robine resigned as the Director from the Board of the Company, effective immediately and consequently, Norbert Fernandes, who was appointed as Alternate Director also ceased to hold the position. Norbert Fernandes was appointed as Additional Director on the Board of the Company, effective immediately. Further, it also announced the
Sapphire Foods’ KFC, Pizza Hut performance
Same stores sales growth was however challenged, as experienced since Diwali’22. In such macro demand conditions, we believe that our two power brands KFC and Pizza Hut can gain differential momentum through a robust activation calendar. Starting Apr’23, both brands have launched a strong product innovation and marketing program,” the company said in a regulatory filing.
KFC overall restaurant sales grew by 24 per cent on-year with SSSG of 2 per cent. “Despite the headwinds, KFC delivered a healthy restaurant EBITDA of 19.1 per cent, on account of cost efficiencies and gross margin recovery,” it said. Pizza Hut overall restaurant sales grew by 18 per cent and SSSG declined by 4 per cent even as SSTG continued to be positive. “Due to negative leverage caused by lower ADS and inflationary pressures, restaurant EBITDA dropped to 8.6 per cent,” it added.
While consumer demand in India remained soft over the last few months, Sapphire Foods said that it is a “near term concern” and hence the company has continued its pace of expansion in the fourth quarter of FY23 with a total addition of 28 restaurants (16 KFS, 12 Pizza Hut). However, in Sri Lanka region, Sapphire Foods is adopting a more cautious approach on new restaurant expansion in the next 12 months. “Operating conditions in Sri Lanka have continued to remain stable since Q3 FY23. Consumer demand has been impacted by high inflation and direct taxes,” it said. While SSSG declined by 3 per cent in Sri Lanka, overall restaurant sales grew by 27 per cent in rupee terms.
