Sapphire Foods India Ltd on Tuesday posted its first quarter earnings for FY25 with profit at Rs 8.52 crore, down 65.8 per cent in comparison to Rs 24.94 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 718.29 crore, up 9.8 per cent as against Rs 654.38 crore during the first quarter of previous financial year. The company EBITDA stood at Rs 124 crore, up 3.3 per cent on-year.
The company said that its Q1FY25 consolidated restaurant sales was at Rs 716.50 crore, recording a growth of 10 per cent. “Discretionary consumer spends seem to be subdued and similar to past few quarters trend. Sapphire KFC was impacted by the shift in the dates of the Navratra Festival compared to last year, while product and marketing interventions have led to improvements in the performance of both Sapphire Pizza Hut and Sri Lanka business,” it said.
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Sapphire KFC delivered restaurant sales growth of 11 per cent YoY and restaurant EBITDA was at 18.8 per cent ( 200 bps YoY). The company said that the drop in EBITDA% is on account of operating de-leverage due to the negative SSSG (further impact of Navratra). “Amongst all QSR brands given its principal non-vegetarian offerings, KFC is impacted the most during vegetarian festival days,” it said.
Meanwhile, Sapphire Pizza Hut has seen an uplift in performance with 17 per cent sequential increase in ADS, ahead of the normal seasonal trend. It delivered restaurant sales growth of 3 per cent YoY and Restaurant EBITDA at 4.6 per cent ( 440 bps YoY) including additional marketing investments.
Furthermore, the Sri Lanka business continues to improve with a strong quarter of double digit SSSG (11 per cent) and SSTG. Restaurant sales was up 13 per cent in LKR ( 19 per cent in rupee terms). The transaction growth bodes well for the business as the Sri Lankan economy recovers from the twin issues of macro-economic uncertainty and high-cost inflation, it said.
Total restaurant count
In Q1FY25, the company added 13 KFC and 1 Pizza Hut restaurants in India. Sapphire Foods total restaurant count is 886 as on 30th June 2024.
From: financialexpress
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