Thursday, November 3, 2011

Jubilant Foodworks Q2 net up 28% YoY; PAT margin declines

Jubilant Foodworks ' second quarter net profit rose 28% year-on-year to Rs 23.67 crore, helped by strong sales at its pizza delivery chain Dominos. However, the net profit was slightly lower than analysts expectations due to higher taxes and one-time expenses, apart from a surge in input costs.

The company’s net sales for the three-month period were largely in-line with expectations, rising 47% at Rs 240.32 crore. Same-store-sales growth, that is growth at stores that are open at least one year, was at 27%.

Analysts on average had expected Jubilant Foodworks to report a net profit of Rs 25.5 crore on revenue of Rs 241 crore, according to a CNBC-TV18 poll.

The company’s second quarter EBITDA [earnings before interest, taxes, depreciation and amortization] was up 47% year-on-year to Rs 43.62 crore, while EBITDA margin was flat at 18.2%.

Jubilant Foodworks said PAT [profit after tax] margin, however, declined to 9.9% from 11.3%, mainly as the company has now moved in full tax bracket.

Its current and deferred tax more than doubled from a year ago to Rs 11.12 crore in the second quarter. Jubilant Foodworks also incurred exceptional cost of Rs 92.30 lakh for operationalising of the Dunkin' Donuts business.

Jubilant Foodworks said it also saw pressure from rising food costs, primarily the increase in price of milk products. Its cost of raw materials and provisions consumed rose 57% year-on-year to Rs 63.50 crore in July-September.

Jubilant Foodworks shares ended down 2.1% at Rs 814.05 on NSE on Thursday.

Expansion Plans

Jubilant Foodworks opened 19 new stores in the second quarter, and as on September 30 it had 411 stores.

In the beginning of this fiscal the company had planned to launch 80 Dominos Pizza stores in 2011-12. It has opened 33 outlets by September 30, and as on date signed additional 29 stores for opening this fiscal, Jubilant Foodworks said.

Earlier in 2011, Jubilant Foodworks had said it planned to launch the Dunkin' Donuts brand in India. The company on Thursday said it is committed to rolling out the stores in a phased manner and expects to launch the first Dunkin' Donuts outlet in the first half of calendar 2012.

"The initial focus of store roll out will be on metros, with a phased target of 80-100 stores in the span of five years," it said.

Jubilant Foodworks is currently in advanced stages of several key areas like menu designing, vendor and supply chain management and human resource planning for Dunkin' Donuts in India, it said.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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