Jubilant Foodworks '
first quarter net profit rose 40% year-on-year to Rs 32.4 crore, helped by
strong growth in sales and new store openings. However, the stock fell 1% after
the company said margins declined due to higher expenses.
Its net sales for the three-month period were up 45% from a
year ago to Rs 314.4 crore.
Analysts on average had expected Jubilant Foodworks to
report a net profit of Rs 33.8 crore on revenue of Rs 304.9 crore, according to
a CNBC-TV18 poll.
Jubilant Foodworks is the master franchisee of Domino's
Pizza Pizza and has recently also started rolling out Dunkin' Donuts outlets in
India.
Its same-store sales at Domino's Pizza outlets rose 22.3% in
April-June. Same-store sales measure sales at stores that are open for at least
one year.
Despite the strong growth in bottom-line and top-line, its
EBITDA (earnings before interest, taxes, amortization and depreciation) margin
fell to 18.2% from 19.4% in the year ago quarter.
"The margins showed the impact of inflation and
operationalizing expenses of Dunkin' Donuts in the quarter," Jubilant
Foodworks said on Wednesday.
The company's total expenses rose 46% to Rs 268.9 crore in
the first quarter.
Jubilant Foodworks opened 24 new Domino's outlets in
April-June, taking the total count to 489 stores across 110 cities as of June
30. It also opened three Dunkin' Donuts restaurants in Delhi during the
quarter.
"We are on track with expansion plans and are also
dedicating our efforts towards menu development and innovation, marketing and
customer service initiatives. We will continue to leverage the power of our
brands to achieve our goals and remain focused on creating sustainable growth
over the long term," said Ajay Kaul, CEO.
The company has scaled up its Domino's Pizza chain expansion
plans and now aims to open 100 outlets this financial year, up from 90 it had
planned earlier.
It will also open 5-6 Domino's stores in Sri Lanka by March
2013 and has a target to open 25-30 outlets over the next 5 years.
Jubilant Foodworks also said it will scale up Dunkin' Donuts
brand in a systematic manner over a period of time. It has a plan to launch
around 10 restaurants selling Dunkin' Donuts, coffee and many made for India
products. Over five years, it will open 80-100 Dunkin' Donuts outlets in India.
Jubilant Foodworks shares were down 0.9% at Rs 1,197.10 in
afternoon trade on NSE.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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