Q1 2025 Sapphire Foods India Ltd Earnings Call Transcript
Key Points
- Sapphire Foods India Ltd (BOM:543397) reported a 10% growth in consolidated restaurant sales, reaching 717 crores.
- The company added 13 KFC stores and one Pizza Hut restaurant in India during the quarter, bringing the total count to 886 stores.
- Pizza Hut saw a significant improvement with a 17% sequential uplift in ADS, reversing a six to seven quarters declining trend.
- Sri Lanka operations showed strong performance with an 11% SSSG growth and a 13.2% restaurant EBITDA margin.
- The company received the Indian Green Building Council Gold Certification for one of its KFC restaurants, highlighting its commitment to sustainability.
- Consolidated restaurant EBITDA margin declined by 210 basis points to 15.1%, and consolidated adjusted EBITDA declined by 88% year-on-year.
- KFC's SSSG was down by 6%, significantly impacted by the shift in the Navratri festival days.
- The company faced a decline in dine-in revenues for KFC, attributed to a broader industry trend and macroeconomic factors.
- Pizza Hut's overall revenue growth was modest at 3%, and the brand's SSSG was negative at -7% for the quarter.
- Increased marketing expenses and wage inflation impacted the company's margins, with limited opportunities for further cost efficiencies if negative SSSG persists.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of Sapphire Foods India Limited hosted by Orient Capital. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Shiwani Karwat from Orient Capital. Thank you, and over to you Ms. Karwat.
Good evening, everyone. Welcome to the Q1 FY25 earnings con call for Sapphire Foods India Limited. From the management, we have with us Mr. Sanjay Purohit, Group CEO and Whole-Time Director; Mr. Vijay Jain, CFO; and Mr. Rahul Kapoor, Head Investor Relations.
I hope everybody had a chance to go through the results and investor presentation, which was uploaded on the exchanges. Before we proceed, a reminder that this call may contain some forward-looking statements, which do not guarantee future performance and involve unforeseen risks. A detailed disclaimer has also been published in the presentation.
I will now hand over the call to Mr. Sanjay. Over to you, sir.
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