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Informist, Monday, Nov. 11, 2024

 

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--Jubilant Food: Maintained price stability over last 9 quarters 
--CONTEXT: Comments of Jubilant Food mgmt in post-earnings analyst concall 
--Jubilant Food: Working to reduce pdt delivery times to 20 minutes, from 30 
--Jubilant Food: Focused on driving growth between 1100-1500 IST in stores 
--Jubilant Food: Order growth, customer addition more than our expectations 
--Jubilant Food: Offset delivery fees waiver partially via packaging charges 
--Jubilant Food: See positive momentum in demand continuing in Oct-Dec 
--Jubilant Food: Expect raw material prices to go up in Jan-Mar

 

 

By Arya S. Biju and Sunil Raghu

MUMBAI – Jubilant FoodWorks Ltd. said its immediate focus is on improving growth and capturing demand. The company will also focus on modestly improving its margin through internal productivity initiatives, Jubilant FoodWorks' management said in a post-earnings analysts call on Monday.

 

The master franchisee of Domino's brand of pizza in India, Bangladesh, Sri Lanka, and Nepal said the company has maintained price stability over the last nine quarters by absorbing inflation through cost optimisation and productivity initiatives. The company said it may consider implementing changes in price if it finds it necessary.  

 

With many big days and festivals in the December quarter, the food service provider said it will focus on increasing investments in marketing, launching new products, improving app efficiency, while continuing partnerships with aggregators. The company expects the same store sales growth to accelerate in the December quarter. 
 

With its end-to-end delivery ecosystem, riders, and advanced delivery management systems, the company said it is well-positioned to meet the growing demand for delivery, led by a shift from dining to delivery. Jubilant FoodWorks is working on reducing delivery time to 20 minutes from 30 minutes, the company said. However, the company said it is focused on driving order growth between 1100 IST and 1500 IST, and will introduce more initiatives towards this goal. In the dine-in segment, the company expects its new dine-in only menu to boost order growth during lunch hours. 

 

Raw material prices are expected to rise in Jan-Jun and will affect margins, Jubilant FoodWorks said. Further, the waiver of INR 40 per order will impact margins, which the company expects to be managed through internal efficiency improvements. 

 

Jubilant FoodWorks said its order growth and new customer additions in the September quarter were more than expected. Jubilant reported a net profit INR 520.64 million for the September quarter, down 27.8% on year, while its revenue for the quarter was INR 14.67 billion, up 9.1% on year. Monday, shares of the company closed at INR 602 on the National Stock Exchange, down 0.9%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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