SAPPHIRE FOODS
Sapphire Foods Q1 FY23
- YUM brand franchisor – India, Srilanka, Bangladesh & Nepal
- 10 + 10 years franchise contract
- Royalty fee is 6-6.3% of net sales and 6% marketing spend
- Allowed to open other non-competing stores with prior approval from YUM – scope for diversification in future
- Great quarter to begin with FY 23
- surpassed pre-covid store count, per restaurant sales per day, EBIT margins, Total revenues,
- Cost optimisation is done by evaluating and closing the unviable restaurants
- Total store count stands at 616 (KFC, Pizza hut and Taco bell) – India, Srilanka, Bangladesh & Nepal
- Total Ebit Margin crossed 20% for the first time and should look to sustain these
- FY 23 total revenues to be north of 1350Cr and PAT be 150Cr (vs 46 crs in FY 22)
- 37 stores opened in Q1 FY23
- contribution from delivery has gone up from 21 % to 39%
- % revenue contribution from drive-through, dine-in and delivery -> Dine-in seems to be a clear winner and hints us that people are stepping out – Indicator for retail proxy play
- Opened Stores in Srilanka even in these political situations – Indicates strength
- 49% of revenue in FY 22 were from delivery orders
insights from presentation:
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