KFC-operator Sapphire Foods announces 1:5 stock split, stock trades in green

Following the announcement, shares of the company were trading higher by over 1.5%.

The company reported that it has taken the decision to split its equity shares to improve its liquidity in the capital markets by widening the shareholder base and making the shares more affordable for retail investors. The split is expected to be completed within three months after receiving the shareholder approval and completion of necessary formalities.

Sapphire Foods is a restaurant operator that runs the KFC and Pizza Hut stores in India and Sri Lanka. 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.

During the fourth quarter of fiscal year 2024, the firm reported a 13% year-on-year (YoY) rise in its operating revenue at ₹631.69 crore. 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.

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

Shares of the company have risen by over 12% since the beginning of the year. The stock has gained over 14% in the last one year.