Sapphire Foods India (SAPPHIRE) Q4 24/25 earnings summary

Executive summary

• Achieved double-digit growth in restaurant count and revenue for FY25, adding 91 new restaurants and reaching 963 outlets, including a milestone of 500 KFC restaurants.

• Recognized globally as the world's best KFC and top four Pizza Hut franchisee, and maintained No.1 QSR ranking in India on the Dow Jones Sustainability Index.

• Sri Lanka business delivered a strong turnaround with double-digit revenue growth and improved margins.

• Audited standalone and consolidated financial results for FY25 were approved with unmodified opinions from statutory auditors.

• Senior management changes included the resignation of the Sr. VP & Head of Business Development and reassignment of responsibilities.

Financial highlights

• FY25 consolidated revenue grew 11% YoY to ₹28,818.64 million; Q4 revenue was ₹7,099 million, up 13% YoY.

• FY25 consolidated net profit after tax was ₹167.04 million, down from ₹519.56 million in FY24; Q4 PAT was ₹20 million (margin 0.3%).

• FY25 adjusted EBITDA margin was 9.1% (down 140 bps YoY); EBITDA margin was 17.1% (down 110 bps YoY).

• Gross margin for FY25 was 68.7% (down 20 bps YoY); India gross margin stable at 69.9%.

• Basic and diluted EPS (consolidated) for FY25 was ₹0.26, down from ₹1.66 in FY24.

Outlook and guidance

• KFC store additions guided at 60-80 net stores per year; Pizza Hut expansion to remain cautious at 20-25 net stores annually.

• Focus remains on expanding omni-channel presence, with continued investment in digital, delivery, and product innovation.

• Pizza Hut brand revival to be supported by new product launches and renewed marketing efforts.

• No explicit forward-looking guidance provided, but management notes ongoing appeal against a significant GST demand and confidence in a favorable outcome.

• Sri Lanka store additions to accelerate to high single digits annually.