Earnings Review
Jubilant Food PAT misses estimates, falls most in 5 qtrs
This story was originally published at 21:04 IST on 11 November 2024
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--Jubilant Food Jul-Sept net profit INR 520.64 mln
--Analysts saw Jubilant Food Jul-Sept net profit INR 551.27 mln
--Jubilant Food Jul-Sept net profit INR 520.64 mln vs INR 721.48 mln
--Jubilant Food Jul-Sept revenue INR 14.67 bln vs INR 13.45 bln year ago
--Jubilant Food Apr-Sept net profit INR 1.04 bln vs INR 1.47 bln year ago
--Jubilant Food Apr-Sept revenue INR 29.06 bln vs INR 26.54 bln year ago
--Jubilant Food Jul-Sept EBITDA INR 2.84 bln vs INR 2.81 bln year ago
--Jubilant Food Jul-Sept EBITDA margin 19.4%, down 150 bps on year
--Jubilant Food: Domino's India net added 50 stores in Jul-Sept
--Jubilant Food net added 51 stores in India in Jul-Sept across all brands
--Jubilant Food: Domino's India Jul-Sept new customer acquisition up 29% YoY
--Jubilant Food: Domino's India revenue up 8.1%, order growth at 20.2%
--Jubilant Food: Domino's India like-for-like growth 2.8%
--Jubilant Food: Domino's India like-for-like delivery growth 11.4%
By Arya S. Biju and Ketan Barot
MUMBAI – Food service company Jubilant FoodWorks Ltd. reported lower-than-expected earnings for the September quarter, marking a fall in net profit for the ninth consecutive quarter. The company reported a net profit of INR 520.64 million for the quarter, down 27.8% on year, missing analysts' estimate of INR 551.27 million. This marked the lowest on-year fall in net profit of the company in the past five quarters.
The master franchisee of Domino's brand of pizza in India, Bangladesh, Sri Lanka, and other countries reported revenue from operations of INR 14.67 billion, up 9.1% on year and below analysts' estimates of INR 15.19 billion. The September quarter marked the 15th consecutive quarter of revenue growth for the company.
For the six months to September, the company reported a net profit of INR 1.04 billion, down 29.7% on year from INR 1.47 billion. The company's revenue for Apr-Sept was INR 29.06 billion, up 9.5% from INR 26.54 billion a year ago.
The total expenditure of the food service provider for the quarter was INR 14.12 billion, up 12.5% from INR 12.55 billion a year ago. Depreciation and amortisation expense of the company for the quarter rose 20% on year to INR 1.65 billion, while raw material costs rose 14.8% on year to INR 3.49 billion. Finance cost of the company for the quarter was up 20% on year to INR 640.2 million. Other expenses of the company were INR 5.63 billion, up 14.1% on year and employee benefit expense was INR 2.69 billion, up 6% on year.
The food service company's earnings before interest, tax, depreciation, and amortisation for the September quarter were INR 2.84 billion, up 1.3% on year. For Apr-Sept, EBITDA of the company was at INR 5.62 billion, up 0.9% on year. The EBITDA margin of the company for the September quarter was 19.4%, down 150 basis points from 20.9% a year ago. For Apr-Sept, the EBITDA margin was 19.3%, down from 21% a year ago.
Jubilant Foodworks' group sales came in at INR 45.08 billion. The group store network expanded to 3,130 stores with the net addition of 139 stores in Apr-Sept. The company added 17 stores in Turkey, five stores in Bangladesh, and 51 stores in the quarter in India across all brands. The network addition of the company in the quarter was led by Domino's India opening 50 stores in the quarter.
Domino's India revenue for the September quarter was up 8.1%, driven by a strong 20.2% order growth. The like-for-like growth for Domino's India was 2.8% for the quarter, led by the 11.4% like-for-like growth in the delivery segment. Like-for-like growth is the on-year growth in sales for non-split restaurants opened before the previous financial year. The mature store average daily sales of Dominos's India for the quarter were INR 80,185, the highest in the last six quarters. The new customer acquisitions of Domino's India were up 29% on year. The Domino's India app saw a record high monthly active users at 12.8 million, up 18.5% on year.
Other brands under Jubilant FoodWorks' such as Popeyes India opened four new stores in the September quarter, taking the total count of operating stores to 54. Dunkin' opened two new cafes and closed six underperforming stores in the September quarter. COFFY opened 11 new stores in Turkey during the September quarter, taking the total count of stores to 116. Monday, shares of the company closed at INR 602 on the National Stock Exchange, down 0.9%. End
Edited by Deepshikha Bhardwaj
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