Sapphire Foods Returns to Profit as KFC and Pizza Hut Discounts Boost Sales
Sapphire Foods India, the operator of KFC and Pizza Hut outlets across the country, reported a return to profitability in the April–June quarter, driven by strong customer demand fueled by attractive discounts and value meal offerings. The company posted a consolidated net profit of ₹140.4 million, reversing a loss of ₹18 million in the same quarter last year and improving from a ₹126.1 million loss recorded in the previous quarter.
Revenue from operations increased 15% year-on-year to ₹8.91 billion, marking the company’s fastest quarterly revenue growth in nearly three years. Same-store sales at KFC India outlets grew 5%, while Pizza Hut India recorded a 1% increase, ending five consecutive quarters of declining same-store sales. Promotional offers, including KFC’s ₹99 Chicken Krisper Meal and Pizza Hut’s ₹99 four-course meal, helped attract more customers amid growing competition from emerging food chains.
Despite a 12% rise in total expenses to ₹8.8 billion, mainly due to higher energy costs, Sapphire Foods delivered improved financial performance. Earlier this year, the company and rival Devyani International announced plans to merge in a $934 million deal, creating one of India’s largest quick-service restaurant franchise operators with more than 3,000 outlets.
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