Sapphire Foods jumps 4% following 13% rise in Q4 operating revenue, firm adds 23 KFC restaurants during the quarter

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 7% for the quarter to ₹110.2 crore. Consolidated restaurant EBITDA declined by 5% YoY while margin stood at 13.6%, down 260 bps.

Net profit for the quarter fell to ₹2.39 crore as compared to ₹135.59 crore in the same period a year ago. For the full fiscal year, the firm reported a 15% rise in its operating revenue at ₹2,594.27 crore. Net profit stood at ₹52.81 crore as compared to ₹233.36 crore profit reported during the previous fiscal

The firm pointed out that in the fiscal year 2023 (FY23), it recognised a deferred tax credit (DTC) of ₹125.3 crore majorly towards carried forward losses in SFIL. This was recognised in Q4FY23, it said, and as a result, net profit for Q4FY24/FY24 is not comparable with Q4FY23 /FY23 results.

Sapphire Foods is a YUM franchise operator in the Indian subcontinent with a presence in India, Sri Lanka and Maldives. The firm was set up in September 2015, by the acquisition of around 270 KFC and Pizza Hut stores in India and Sri Lanka, by a group of private equity firms.

In Q4FY24, the firm added 23 KFC restaurants. Sapphire Foods’ total restaurant count stood at 872 as on March 31, 2024.

Sapphire KFC delivered a restaurant sales growth of 16% YoY and a 3% decline in same-store sales growth (SSSG). Meanwhile, Pizza Hut Restaurant sales in Q4FY24 declined by 3% YoY and SSSG fell by 15%, thereby considerably shrinking the restaurant EBITDA margins.

Shares of the company rose nearly 1.5% since the beginning of the year. The stock has risen over 10% in the last one year.