KFC And Pizza Hut Brands Operator Stock To Approve First-Ever Stock Split Soon

Sapphire Foods is one of the top franchise operators of YUM in the Indian subcontinent, operating in Sri Lanka, the Maldives, and India. In terms of sales and the number of locations, it is the largest foreign QSR chain in Sri Lanka. The company said that the Board of Directors would convene shortly to discuss and approve the first-ever stock split, which has put the stock front and centre.

"Pursuant to provisions of Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements), 2015 ("SEBI Listing Regulations"), we hereby inform that the meeting of the Board of Directors of Sapphire Foods India Limited ("Company") is scheduled to be held on Wednesday, 19th June 2024, to consider and approve, inter-alia, a proposal for alteration in the share capital of the Company by sub-division/split of existing equity shares of the Company having face value of Rs. 10/- each, fully paid up," said Sapphire Foods in a regulatory filing on Monday.

The business's net profit after tax for the quarter that ended on March 31, 2024, was Rs 2 crore, down 98.5% YoY from Rs 135.5 crore in the same quarter of the previous year. For the reporting quarter, operating revenue climbed 13% YoY to Rs 631.7 crore. EBITDA increased by 5.5% from Rs. 98.62 crore in Q4FY23 to Rs. 104.04 crore in Q4FY24.

Taking into account all parameters, such as revenue scale and growth of 15%, EBITDA margin of 18.2% and growth of 9%, and the number of new restaurants opened, Sapphire has demonstrated the highest overall performance in the business. Out of all QSR companies, Sapphire KFC has the most restaurant EBITDA margin (19.7%). Sapphire KFC and Sapphire PH were named two of Yum's top three franchises worldwide in FY24 based on operational standards and customer metrics. According to the Dow Jones Sustainability Index (DJSI), Sapphire Foods is ranked No. 1 QSR in India and in the 95th percentile of QSR worldwide for FY24. 23 KFC locations were added in Q4 of FY24. As of March 31, 24, Sapphire Foods had 872 restaurants overall. The company's 13.6% margin was achieved despite a 5% YoY fall in its consolidated restaurant EBITDA.

Pizza Hut restaurant sales fell 3% year on year in Q4FY24, while SSSG fell by 15%, significantly reducing restaurant EBITDA margins. Sapphire Pizza Hut's restaurant EBITDA for FY24 was 4.9%, but sales remained flat. Over the year, it launched 33 new restaurants.

In the morning session of Tuesday, the shares of Sapphire Foods India were trading higher at Rs 1,439.90 apiece with a market cap of Rs 9.16KCr on BSE. The consumer discretionary stock reached a 52-week-high level of Rs 1,699.95 on (04/04/2024) and a 52-week-low level of Rs 1,218.50 on (02/11/2023).