KFC and Pizza Hut operator Sapphire Foods' net profit drops 25 pc in Q4

New Delhi, May 7 (IANS) Sapphire Foods India, the operator of KFC and Pizza Hut outlets in India and Sri Lanka, on Wednesday reported a 25 per cent drop in its consolidated net profit for the March quarter (Q4), which fell to Rs 17.91 crore from Rs 23.9 crore in the same period last fiscal (Q4 FY24).

This decline came despite a 13 per cent year-on-year (YoY) growth in revenue, which rose to Rs 711 crore in Q4.

The increase in revenue was mainly driven by strong performance from KFC India and Pizza Hut operations in Sri Lanka.

During the quarter, the company added six new KFC outlets, bringing the total number of restaurants to 963 as of March 31.

While revenue showed healthy growth, profitability metrics remained under pressure.

Consolidated restaurant EBITDA declined 1 per cent YoY, with the margin standing at 12 per cent.

Adjusted EBITDA dropped 7 per cent to Rs 50.8 crore, with an adjusted margin of 7.2 per cent.

However, consolidated EBITDA saw a modest 3 per cent rise to Rs 113.3 crore, though the EBITDA margin declined by 150 basis points to 16 per cent.

Sapphire’s consolidated profit after tax (PAT) for the quarter stood at just Rs 2 crore, with an adjusted PAT of Rs 3.3 crore, representing a margin of only 0.5 per cent.

In FY25, the company’s Pizza Hut business in India faced challenges, with the restaurant's EBITDA margin falling by 250 basis points YoY to 2.4 per cent.

Despite this, the company continued to expand, adding 15 new Pizza Hut outlets during the year and taking the total to 334.

On a positive note, Sapphire Foods’ Sri Lanka business delivered a strong performance. Same-store sales growth stood at 16 per cent, with transactions also showing healthy momentum.

The Sri Lanka restaurant EBITDA margin improved by 250 basis points to 14.8 per cent.

Sales in Sri Lanka grew 19 per cent in local currency terms and 31 per cent in Indian rupee terms.

-- IANS

pk/vd