Results     25-Jul-23
Analysis
Jubilant Foodworks
NP down 74.35%
For quarter ended June 2023, consolidated Net sales (including other operating income) of Jubilant Foodworks has increased 6.33% to Rs 1334.54 crore compared to quarter ended June 2022. Operating profit margin has declined from 24.23% to 20.67%, leading to 9.31% decline in operating profit to Rs 275.83 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 21.87% to 22.52%.   Purchase of finished goods cost rose from 1.66% to 1.67%.   Employee cost increased from 16.55% to 18.94%.   Other expenses rose from 35.76% to 36.19%.   

Other income fell 12.38% to Rs 9.34 crore.  PBIDT fell 9.41% to Rs 285.17 crore.  Provision for interest rose 15.87% to Rs 54.31 crore.  

PBDT fell 13.83% to Rs 230.86 crore.  Provision for depreciation rose 26.71% to Rs 135.72 crore.  

Profit before tax down 40.84% to Rs 95.14 crore.  Share of profit/loss was 256.20% lower at Rs -40.82 crore.  Provision for tax was expense of Rs 25.4 crore, compared to Rs 36.77 crore.  Effective tax rate was 46.76% compared to 24.62%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 74.35% to Rs 28.92 crore.  

Promoters’ stake was 41.94% as of 30 June 2023 ,compared to 41.94% as of 30 June 2022 .  Promoters pledged stake was 0.63% as of 30 June 2023 ,compared to 1.84% as of 30 June 2022 .  


Full year results analysis.

Net sales (including other operating income) of Jubilant Foodworks has increased 17.34% to Rs 5158.25 crore.  Operating profit margin has declined from 25.22% to 22.32%, leading to 3.86% rise in operating profit to Rs 1,151.56 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 21.24% to 22.70%.   Purchase of finished goods cost rose from 1.34% to 1.58%.   Employee cost increased from 17.46% to 17.55%.   Other expenses rose from 34.75% to 35.87%.   

Other income rose 21.91% to Rs 50.41 crore.  PBIDT rose 4.51% to Rs 1201.97 crore.  Provision for interest rose 14.28% to Rs 201.23 crore.  Loan funds rose to Rs 2,553.74 crore as of 31 March 2023 from Rs 2,106.10 crore as of 31 March 2022.  Inventories rose to Rs 177.00 crore as of 31 March 2023 from Rs 161.18 crore as of 31 March 2022.  Sundry debtors were higher at Rs 28.73 crore as of 31 March 2023 compared to Rs 22.05 crore as of 31 March 2022.  Cash and bank balance declined from Rs 563.36 crore as of 31 March 2022 to Rs 256.91 crore as of 31 March 2023.  Investments declined from Rs 926.78 crore as of 31 March 2022 to Rs 821.81 crore as of 31 March 2023.  

PBDT rose 2.74% to Rs 1000.74 crore.  Provision for depreciation rose 23.62% to Rs 485.89 crore.  Fixed assets increased to Rs 3,534.05 crore as of 31 March 2023 from Rs 2,719.56 crore as of 31 March 2022.  Intangible assets increased from Rs 63.58 crore to Rs 137.96 crore.  

Profit before tax down 11.38% to Rs 514.85 crore.  Share of profit/loss was 151.15% lower at Rs -26.12 crore.  Provision for tax was expense of Rs 135.7 crore, compared to Rs 145.17 crore.  Effective tax rate was 27.77% compared to 25.77%.

Minority interest increased 92.61% to Rs -0.17 crore.  Net profit attributable to owners of the company decreased 15.98% to Rs 353.20 crore.  

Equity capital stood at Rs 131.97 crore as of 31 March 2023 to Rs 131.97 crore as of 31 March 2022.  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 41.94% as of 31 March 2023 ,compared to 41.94% as of 31 March 2022 .  Promoters pledged stake was 1.66% as of 31 March 2023 ,compared to 1.67% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 1,026.16 crore for year ended March 2023 from Rs 930.02 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 842.03 crore, compared to Rs 458.38 crore during the year ended March 2022.  

Other Highlights

Domino’s Cheesy Rewards membership base reaches 16.8 million with 48% Order Contribution in June23.

In Q1 FY24, company Opened 30 new stores in India, total store count reached 1,891. It also opened four new Popeyes restaurant and entered two new cities – Manipal and Coimbatore.

In Q1 FY24, Like-for-Like Growth was negative 1.3% YoY. Delivery channel sales increased by 8.4% YoY.

In Q1 FY24, in Sri Lanka, the system sales growth was 13.1% YoY and company opened two new stores taking the network strength to 50 stores. In Bangladesh, system sales grew by 69.6% and the network expanded to 20 stores.


Management Comments :
Mr. Shyam S. Bhartia, Chairman and Mr. Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited commented, “Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology.”

Mr. Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited commented, “Our strategy of customer first and technology forward has started to yield positive results. ADS for mature stores grew by 2.7% sequentially, decline in ticket size was arrested, app-installs, loyalty enrolments reached a new peak, and we executed efficiently to expand EBITDA margin by 97 bps versus the previous quarter. I remain confident in our strategies and the organization`s ability to overcome the slower growth phase and emerge stronger out of it.”



Jubilant Foodworks : Consolidated Results
 Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,334.541,255.106.335,158.254,396.1217.34
OPM (%)20.6724.23-356 bps22.3225.22-290 bps
OP275.83304.13-9.311,151.561,108.783.86
Other Inc.9.3410.66-12.3850.4141.3521.91
PBIDT285.17314.79-9.411,201.971,150.134.51
Interest54.3146.8715.87201.23176.0914.28
PBDT230.86267.92-13.831,000.74974.042.74
Depreciation135.72107.1126.71485.89393.0523.62
PBT95.14160.81-40.84514.85580.99-11.38
Share of Profit/(Loss) from Associates-40.82-11.46-256.20-26.12-10.4-151.15
PBT before EO54.32149.35-63.63488.73570.59-14.35
EO Income00-0-7.33-
PBT after EO54.32149.35-63.63488.73563.26-13.23
Taxation25.436.77-30.92135.7145.17-6.52
PAT28.92112.58-74.31353.03418.09-15.56
Minority Interest (MI)0-0.17--0.17-2.392.61
Net profit28.92112.75-74.35353.2420.39-15.98
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations28.92112.75-74.35353.2420.39-15.98
EPS (Rs)*0.441.71-74.355.356.45-17.07
* EPS is on current equity of Rs 131.97 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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