Sapphire Foods India (SAPPHIRE) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue growth of 14% year-over-year in Q3 FY25, reaching INR 7,565.37 million, with all business verticals delivering double-digit growth.

• Added 54 new restaurants in Q3 FY25, bringing the total to 963 as of December 31, 2024.

• Closed all four stores in Maldives between Nov'24 and Jan'25 due to impairment.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

• Merger of two wholly owned subsidiaries completed, effective from March 31, 2024, with retrospective restatement.

Financial highlights

• Q3 FY25 consolidated revenue from operations: INR 7,565.37 million, up from INR 7,041.70 million YoY; consolidated EBITDA rose 14% YoY to INR 1,398 million (margin 18.5%).

• Adjusted EBITDA grew 12% to INR 811 million, with an adjusted EBITDA margin of 10.7%.

• Consolidated PAT was INR 127.32 million (1.7%), adjusted PAT at INR 194 million (2.6%).

• Exceptional item: INR 114.20 million impairment in subsidiary assets (consolidated); Maldives exit impacted 9M FY25 PAT.

• Gross margins largely stable across brands, with Q3 FY25 consolidated gross margin at 68.7%.

Outlook and guidance

• KFC store expansion to continue at 70-80 stores per year; focus on SSSG revival through value offers and innovation.

• Pizza Hut expansion to remain cautious, with increased marketing and focus on double-digit store-level EBITDA.

• Sri Lanka business targets at least 15% revenue CAGR over the medium term, maintaining operational focus and value strategy.

• Margins for KFC expected to remain around 18% unless SSSG exceeds 5%.

• Company continues to operate in the restaurant segment with a focus on operational efficiency.