Jubilant FoodWorks (JUBLFOOD) Q4 17/18 earnings summary

Executive summary

• FY18 turnaround followed a return to core execution: upgraded pizzas, everyday value, better ordering and delivery, and tighter cost control lifted sales, customer scores and margins.

• Domino's Pizza India SSG reached 13.9% for FY18, with Q4 at a six-year high of 26.5%.

Financial highlights

• Standalone FY18 revenue from operations was ₹2,980.4 crore, up 17.1% YoY; EBITDA was ₹446.4 crore, up 81%; PAT was ₹206.4 crore, up 206.9%.

• Standalone EBITDA margin rose to 15.0% from 9.7%, expanding 530 bps; PBT increased 220.4% to ₹313.2 crore.

• Consolidated FY18 revenue was ₹3,018.4 crore, PAT ₹196.2 crore and basic EPS ₹29.74, versus ₹2,583.4 crore, ₹57.8 crore and ₹8.77 in FY17.

• Standalone operating cash flow was ₹415.0 crore versus ₹212.5 crore; cash and cash equivalents ended FY18 at ₹76.6 crore.

Outlook and guidance

• Domino's Pizza India priorities remain network optimisation and stronger SSG, targeting consumer segments across the substantial India pizza growth opportunity.

• Dunkin' Donuts India targeted break-even by FY19-end after reducing losses through core-product focus, cost rationalisation and smaller formats.

• Product innovation, value, customer experience, digital technology, cost optimisation and productivity remain the strategic priorities for sustained growth.

• IMF projections cited Indian GDP growth of 7.4% in 2018 and 7.8% in 2019.