Latest news with #SapphireFoods
Time of India
10-05-2025
- Business
- Time of India
Franchisee ad row hurting sales: Sapphire CEO
Differences between two of global restaurant chain Pizza Hut 's biggest franchisees in India -Sapphire Foods and Devyani International-have led to pausing of advertising in common franchisee zones, impacting sales, a top executive said. "Starting January-March '25 quarter, we have not been able to invest in mass media advertising (for Pizza Hut)... That's resulted in an impact on our transactions," Sanjay Purohit, group chief executive of Sapphire Foods , said in a post-quarter earnings call. "That's arising because of a difference of view between us and our sister franchisee (Devyani) on marketing strategy and investments on advertising." While Ravi Jaipuria-owned Devyani is the largest franchise partner of Yum! Brands-which owns quick-service restaurant (QSR) chains including KFC, Pizza Hut and Taco Bell-with rights to operate these brands in North and East India, Sapphire operates the brands in South and West India. Devyani operates an overall 2,000-plus stores, while Sapphire's total store count is over 900. "While Yum is aligned with investing (on Pizza Hut ads) similar to us, the difference in opinion has meant that we've not been able to advertise in common markets," Purohit told analysts. When contacted by ET, Jaipuria declined to comment. Devyani International 's January-March quarter earnings are scheduled for later in this month. Store operations of both franchisees overlap in markets such as Maharashtra, Andhra Pradesh and Karnataka, with stores across delivery-only, takeaways and airports. Purohit's comments come amid continued slowing sales of QSRs. Reacting to an analyst query on when Sapphire Foods expected a resolution to the differences, Purohit said it may take one-two quarters. "The difference of opinion really stems from our belief whether spending on or investing behind mass media advertising is resulting in increased transactions or not... If there are questions in someone else's mind on that, that's perfectly alright... The only way to do that is through data and through actually proving that this can work," he said.
Time of India
09-05-2025
- Business
- Time of India
Franchisee ad row hurting sales: Sapphire CEO
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Differences between two of global restaurant chain Pizza Hut 's biggest franchisees in India -Sapphire Foods and Devyani International-have led to pausing of advertising in common franchisee zones, impacting sales, a top executive said."Starting January-March '25 quarter, we have not been able to invest in mass media advertising (for Pizza Hut)... That's resulted in an impact on our transactions," Sanjay Purohit, group chief executive of Sapphire Foods , said in a post-quarter earnings call. "That's arising because of a difference of view between us and our sister franchisee (Devyani) on marketing strategy and investments on advertising."While Ravi Jaipuria-owned Devyani is the largest franchise partner of Yum! Brands-which owns quick-service restaurant (QSR) chains including KFC, Pizza Hut and Taco Bell-with rights to operate these brands in North and East India, Sapphire operates the brands in South and West India. Devyani operates an overall 2,000-plus stores, while Sapphire's total store count is over 900."While Yum is aligned with investing (on Pizza Hut ads) similar to us, the difference in opinion has meant that we've not been able to advertise in common markets," Purohit told contacted by ET, Jaipuria declined to comment. Devyani International 's January-March quarter earnings are scheduled for later in this operations of both franchisees overlap in markets such as Maharashtra, Andhra Pradesh and Karnataka, with stores across delivery-only, takeaways and comments come amid continued slowing sales of to an analyst query on when Sapphire Foods expected a resolution to the differences, Purohit said it may take one-two quarters."The difference of opinion really stems from our belief whether spending on or investing behind mass media advertising is resulting in increased transactions or not... If there are questions in someone else's mind on that, that's perfectly alright... The only way to do that is through data and through actually proving that this can work," he said.
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Business Standard
07-05-2025
- Business
- Business Standard
KFC operator Sapphire Foods Q4 profit remains flat, revenue up 13%
KFC operator Sapphire Foods has reported ₹2.024 crore consolidated profit after tax (PAT) in the fourth quarter of financial year 2025. The net profit has declined slightly year-on-year. The company reported a net profit of ₹2.039 crore in the fourth quarter of FY24. Sapphire Foods reported revenue of ₹711 crore in Q4FY25, marking a 13 per cent year-on-year growth, driven by KFC India and Pizza Hut Sri Lanka. The company added six new KFC outlets during the quarter, taking the total restaurant count to 963 as of 31 March 2025. Consolidated restaurant EBITDA declined 1 per cent year-on-year, with the margin at 12 per cent. Adjusted EBITDA stood at ₹50.8 crore, down 7 per cent, with an adjusted EBITDA margin of 7.2 per cent. The consolidated EBITDA rose 3 per cent year-on-year to ₹113.3 crore, with a margin of 16 per cent, down 150 basis points. Consolidated PAT was ₹2 crore (0.3 per cent), while adjusted PAT was ₹3.3 crore (0.5 per cent). In FY25, Sapphire's Pizza Hut business reported a restaurant EBITDA margin of 2.4 per cent, down 250 basis points year-on-year. The company added 15 new outlets during the year, taking the total restaurant count to 334. The Sri Lanka business of the company reported strong double-digit growth, with same-store sales (SSSG) rising 16 per cent and same-store transactions (SSSTG) also showing momentum. Sri Lanka restaurant EBITDA margin improved by 250 basis points year-on-year to 14.8 per cent. Sales grew 19 per cent in LKR (Sri Lankan rupee) terms and 31 per cent in rupee terms. This quarter marked the culmination of a strong turnaround for the Sri Lanka business over the year. Sapphire Foods FY25 highlights Net profit: ₹16.70 crore (down 67.8 per cent from ₹51.95 crore in FY24) Q4 FY25 highlights Revenue: ₹711.34 crore Net profit (attributable to owners): ₹1.79 crore Earnings per share (EPS): ₹0.06 (Basic and Diluted) FY25 highlights Net profit: ₹16.70 crore
Reuters
07-05-2025
- Business
- Reuters
KFC India operator Sapphire misses revenue estimates on sluggish demand
May 7 (Reuters) - Sapphire Foods India ( opens new tab, which operates Pizza Hut and KFC restaurants in the country, reported a quarterly revenue that missed estimates on Wednesday, as demand failed to pick up despite discounts. The restaurant operator posted revenue from operations of 7.11 billion rupees ($83.98 million) for the fourth-quarter ended March 31, compared to 6.32 billion rupees a year earlier, according to a regulatory filing. Analysts had expected 7.14 billion rupees, according to data compiled by LSEG. ($1 = 84.6600 Indian rupees)
