Sapphire Foods Struggles Amid Revenue Boost

Sapphire Foods India, renowned as the franchisee operator for YUM Brands' popular chains KFC and Pizza Hut, disclosed a consolidated loss of Rs 1.73 crore for the June quarter on Wednesday. This falls in stark contrast to the net profit of Rs 8.18 crore it reported in the same period last year.

According to a regulatory filing, consolidated revenue from operations improved, showing an 8.14% increase to Rs 776.82 crore compared to the previous year. However, the rise in total expenses by 10.35% to Rs 785.45 crore overshadowed the revenue gains, contributing to the company's losses.

Noteworthy is the expansion with eight new KFC restaurants and three Pizza Hut outlets added, pushing the total to 974 restaurants by June 30, 2025. Despite expansion, Sapphire Foods saw a dip in Pizza Hut's revenue by 5% Y-o-Y and sustained a negative EBITDA of -2.5%, though their Sri Lankan market showed strong double-digit growth.

(With inputs from agencies.)