KFC and Pizza Hut operator Sapphire Foods on Thursday posted a profit of Rs 12.73 crore for th third quarter of FY25, reporting a growth of 29.50 per cent in comparison to Rs 9.83 crore recorded during the corresponding quarter of FY24. It recorded revenue from operations at Rs 756.54 crore, up 13.67 per cent as against Rs 665.56 crore during the same period of previous financial year. The company EBITDA was up 10 per cent at Rs 134.2 crore. Sapphire Foods said that all its 3 business verticals (KFC India, Pizza Hut India & Sri Lanka) delivered double digit revenue growth.
During the quarter in review, the company added 54 restaurants which included 35 KFC, 16 Pizza Hut in India and 4 Pizza Hut, 1 Taco Bell in Sri Lanka, with 2 closures in Maldives. Sapphire Foods’ total restaurant count stood at 963 as on 31st Dec 24.
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Sapphire KFC (same-store sales growth) SSSG trajectory (-3 per cent) improved vs previous 2 quarters with SSTG largely remaining flat, driven by the focus on value offers on core products. Restaurant sales, it said, posted a growth of 12 per cent and Restaurant EBITDA margin came at 18.2 per cent (190 bps YoY due to operating deleverage). “As mentioned previously, our recipe for SSSG revival revolves around increasing occasions of consumption through value on core products, product innovations (Chicken Rolls variants, Zinger Burger variants, Snackers) and focus on day parts (lunch, late night, Wednesdays),” the company said.
Sapphire Pizza Hut, meanwhile, delivered SSSG of 5 per cent with Average Daily Sales (ADS Rs 48K) remaining stable in line with previous 2 quarters. Restaurant sales increased by 10 per cent YoY and Restaurant EBITDA was 4.7 per cent ( 10 bps) post additional marketing spends. “We continue to back the brand with increased marketing investments behind product innovations,” it added.
Furthermore, its Sri Lanka business delivered a strong quarter with double digit SSSG (14 per cent LKR) and SSSTG growth with Restaurant EBITDA at 17.8 per cent ( 360 bps YoY). Restaurant Sales, it said, posted a growth of 15 per cent in LKR (30 per cent in rupee terms).
Shares of Sapphire Foods went down by 0.46 per cent at 2:30 pm to a trading price of Rs 317.10.
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