Thursday, October 30, 2014

#Jubilant FoodWorks' net profit drops 12.7% at Rs 29 cr

Jubilant FoodWorks has reported a 12.7% drop in its net profit at Rs 29 crore in the July-September quarter of 2015 fiscal compared to the Rs 33.24 crore net profit in the same quarter last fiscal.

Q2 FY15
Total Income at Rs. 5,012million
EBITDA at Rs. 610million
Net Profit after tax at Rs. 290million

H1 FY15
Total Income at Rs. 9,780million
EBITDA at Rs. 1,200 million
Net Profit after tax at Rs. 567million

Result Analysis

Total revenue in Q2 FY15 stood at Rs.5,012 million.
§  Q2 & H1 growth was driven by an enhanced Domino’s Pizza restaurants network led by deeper penetration in existing geographies as well as launch in several new markets

o    This in combination with marketing & advertising initiatives, innovative menu offerings, attractive online ordering promotions has resulted in positive growth during the quarter

o    Q2 also witnessed the benefit of price hike

§  Revenue also recorded the  contribution of Dunkin’ Donuts restaurants where growth was led by new restaurant opening, wide menu offering and promotional offers

Total Expenditure ­­in Q2 FY15 stood at Rs. 4,401 million.
·         Increase in expenditure during the quarter is reflective of the overall growth in business activities

o    Personnel expenses were expressed at a higher level due to annual increments in salaries and increase in minimum wages

o    Impact of general inflation

o    Development expenses related to Dunkin’ Donuts

·         Total number of employees as on 30 September 2014 stood at 26,818up from 21,899 as on 30  September 2013

EBITDA in Q2FY15 was at Rs. 610 million
·         EBITDA remained under pressure due to higher expenditure during the quarter related to higher employee and other expenses coupled with negative same store sales growth

Profit after Tax in Q2 FY15 stood at Rs290 million
·         Moderated growth trends in revenue driven by macro-economic conditions combined with higher expenditure were attributable to the decline in profitability

JFL’s Outlook
o     Enhance network reach
§  Reach out to a broad spectrum of customers  through an increasing  network

§  Making brands more accessible via online platforms to enhance convenience ordering

§  Progressing towards planned target for launch of 150new Domino’s Pizza restaurants in FY15 Successfully opened 80 new restaurants as of 30 October, 2014

§  Corresponding target for Dunkin’ Donuts is to open 30 new restaurants. The Company has opened 12 new restaurants as of 30 October, 2014