Sapphire Foods India's consolidated net profit declined 23% to Rs 32.7 crore in Q3 FY23 compared with Rs 42.4 crore in Q3 FY22.
Despite softening of demand post Diwali, the company's Q3 FY23 consolidated revenue (Rs 593.9 crore) grew by 17%, wherein India Revenue delivered a growth of 24%.Consolidated EBITDA (Rs 116.7 crore, 19.6%) grew YoY by 8% (down 190 bps). EBITDA margin decline by 190 bps to 19.6% in Q3 FY23 as against 21.5% in corresponding quarter last year. India's EBITDA grew 19% year on year (YoY) in Q3 FY23.
India restaurant EBITDA grew YoY by 19% (down 90 bps).
KFC overall revenue grew YoY by 26% with same-store sales growth (SSSG) of 3%. Despite the headwinds, KFC delivered healthy restaurant EBITDA of 20.2% (down 100 bps YoY), on account of cost efficiencies and gross margin recovery (down 90 bps over sequential quarter).
Pizza Hut overall revenue grew by 20% and SSSG declined by 4%. Due to negative leverage and continued inflationary pressures (gross margin down 30 bps over sequential quarter), Restaurant EBITDA was at 14.1% (down 80 bps YoY).
While operating conditions in Sri Lanka have stabilised, consumers wallets have been impacted by high inflation and taxes. While same-store transactions declined, overall revenue grew by 39% in LKR terms (down 15% in INR terms) with SSSG of 18% in LKR terms. Restaurant EBITDA margins were at 14.6% (down 930 bps YoY).
During the quarter, the company added 57 restaurants in Q3 FY23 (24 KFC, 25 Pizza Hut in India and 6 Pizza Hut & 2 Taco Bell in Sri Lanka).
Sapphire Foods India is principally engaged in the franchisee business of KFC, Pizza Hut and Taco Bell branded restaurants.
The scrip rose 0.02% to settle at Rs 1,261.70 on the BSE.
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