Sapphire Foods Q4 Earnings: KFC & Pizza Hut Operator Reports Flat Profit of Rs 2.02 Crore Amid Sluggish Demand

Sapphire Foods, the operator behind popular brands like KFC and Pizza Hut, has recently shared its fiscal fourth quarter earnings, revealing a profit that held steady at Rs 2.02 crore. The company reported impressive revenue from operations amounting to Rs 711.34 crore, reflecting a 12.61% increase from Rs 631.70 crore in the same quarter of FY24. This growth was primarily fueled by the strong performance of KFC in India and Pizza Hut in Sri Lanka.

Quarterly Performance Highlights

Despite the flat profit margin, Sapphire Foods showed signs of improvement in its same-store sales growth (SSSG), which rose to -1%, a positive shift from the previous two quarters. The total restaurant revenue saw a notable increase of 12%, although the restaurant EBITDA margin dipped to 15.7%, a decline of 300 basis points year-over-year. This was attributed to a combination of lower average daily sales, a higher mix of deliveries, and operating leverage challenges.

Revenue from operations: Rs 711.34 crore
EBITDA: Rs 106 crore, down 5.2%
Same-store sales growth: -1%

"Our ongoing commitment to enhancing our delivery operations has significantly boosted our SSSG in this channel compared to aggregators throughout the year," the company noted.

Full-Year Financial Insights for FY25

For the entire fiscal year, Sapphire Foods recorded total revenue of Rs 2,875.40 crore, marking an 11% year-over-year growth. The company also achieved a double-digit growth in both restaurant count and revenue. While EBITDA grew by 4% to 17.1%, the adjusted EBITDA saw a decline of 4%, resulting in a consolidated profit after tax (PAT) of Rs 16.70 crore.

Total revenue: Rs 2,875.40 crore
EBITDA growth: 4%
Consolidated PAT: Rs 16.70 crore

Sapphire’s KFC business demonstrated robust performance with 11% revenue growth and an EBITDA margin of 17.3%. "We proudly reached the landmark of 500 KFC restaurants this year, effectively doubling our count over the last three years," the company stated. Additionally, its operations in Sri Lanka saw a significant turnaround with 14% revenue growth in LKR and a 24% increase in INR terms, accompanied by a healthy restaurant EBITDA margin of 15.4%.

Growth of Pizza Hut and Network Expansion

In terms of Pizza Hut, Sapphire recorded a 5% growth in revenue, with the restaurant EBITDA margin dropping by 250 basis points to 2.4%. The company successfully opened 15 new Pizza Hut locations, bringing the total count to 334 restaurants.

During the fourth quarter of FY25, Sapphire Foods expanded its footprint by adding 6 KFC restaurants, resulting in a cumulative total of 963 restaurants as of March 31, 2025.

As Sapphire Foods continues to innovate and adapt in a competitive market, its performance metrics indicate a solid foundation for future growth and expansion in the fast-food sector.