The company's Profit before tax (PBT) in the March quarter stood at Rs 0.84 crore, down 93.2% from Rs 12.28 crore reported in the same period a year ago.

EBITDA stood at Rs 110.23 crore in the fourth quarter of FY24, registering growth of 7% as against Rs 103.04 crore posted in Q4 FY23. EBITDA margin reduced to 17.5% in Q4 FY24 as compared to 18.4% registered in the corresponding quarter last year.

In Q4 FY24, consolidated restaurant sales jumped 13% to Rs 629.7 crore and EBITDA increased 7% to Rs 110.2 crore. Demand across all consumer product categories remains constrained.

Sapphire KFC continues to perform well in a tough consumer demand environment. It delivered another quarter of healthy performance with restaurant sales growth of 16% YoY despite of same-store sales growth (SSSG) decreaded by 3% and Restaurant EBITDA at 18.7% (down 40 bps YoY).

Pizza Hut overall revenue grew by 20% and same stores sales growth (SSSG) declined by 4%. Due to negative leverage and continued inflationary pressures (gross margin down 30 bps over sequential quarter), Restaurant EBITDA was at 14.1% (down 80 bps YoY).

Pizza Hut restaurant sales in Q4FY24 declined by 3% YoY and SSSG by 15% which considerably shrank Restaurant EBITDA margins. Coupled with its enhanced marketing investment. EBITDA margin dropped to 2.7% in Q4 FY24. Excluding the additional marketing spend, the brand broke even at the Restaurant EBITDA level, stated by the company.

Sri Lanka Restaurant sales grew by 8% in LKR (up 22%) while SSSG was 4%. Restaurant EBITDA margins were at 12.3% (down 190 bps YoY), decreased by 3% in LKR (up 6% in Rs terms) terms as a result of cost inflation in restaurant operating expenses.

The company added 23 KFC restaurants in Q4 FY24, bringing its total restaurant count to 872 as of 31 March 2024.

On full year basis, the company’s consolidated net profit dropped by 77.71% YoY to Rs 51.95 crore despite of revenue grew by 14.50% YoY to Rs 2,594.27 crore for FY24 over FY23.

Meanhwile, the company’s board has approved has approved the amalgamation of French Restaurants (Private) Limited (FRPL) with Gamma Pizzakraft Lanka (Private) (GPLPL), wholly-owned subsidiaries of the Sapphire Foods India situated at Sri Lanka.

Sapphire Foods India is principally engaged in the franchisee business of KFC, Pizza Hut and Taco Bell branded restaurants.