NEW DELHI— Sapphire Foods India, the operator of KFC and Pizza Hut outlets in India and Sri Lanka, reported a 25% drop in consolidated net profit for the fourth quarter (Q4), slipping to ₹17.91 crore from ₹23.9 crore in the same period last year.
The profit decline came despite a 13% year-on-year (YoY) rise in revenue, which reached ₹711 crore, driven by strong performance from KFC India and Pizza Hut in Sri Lanka.
During the quarter, the company opened six new KFC outlets, bringing its total restaurant count to 963 as of March 31. However, profitability remained under pressure.
Consolidated restaurant EBITDA declined 1% YoY, with margins holding at 12%. Adjusted EBITDA dropped 7% to ₹50.8 crore, while the adjusted margin fell to 7.2%. Overall consolidated EBITDA rose 3% to ₹113.3 crore, but the margin slipped 150 basis points to 16%.
The company’s consolidated profit after tax stood at just ₹2 crore, with an adjusted PAT of ₹3.3 crore, reflecting a slim 0.5% margin.
Pizza Hut India faced headwinds in FY25, with restaurant EBITDA margin falling by 250 basis points to 2.4%, despite the addition of 15 new outlets, bringing the total to 334.
On the brighter side, Sapphire’s Sri Lanka business posted strong same-store sales growth of 16% and a 250 basis-point improvement in restaurant EBITDA margin to 14.8%. Sales in Sri Lanka rose 19% in local currency terms and 31% in Indian rupee terms. (Source: IANS)
