Jubilant FoodWorks (JUBLFOOD) Q4 12/13 earnings summary

Executive summary

• FY 2013 delivered 38% revenue growth and 27.9% PAT growth despite economic slowdown and weaker consumer spending; store expansion, menu innovation and digital ordering supported growth.

• Annual same-store sales growth (SSSG) was 16.2%, but softened to 7.7% in Q4 from 22.3% in Q1 amid weak consumer sentiment and slowing economic growth.

Financial highlights

• Standalone total income rose 38% YoY to ₹14,153 million; EBITDA increased 28.4% to ₹2,443.9 million and PAT rose 27.9% to ₹1,351.1 million.

• Standalone PBT was ₹1,974.3 million, up 27.7% YoY; diluted EPS was ₹20.55 versus ₹16.12 in FY 2012.

• Consolidated sales and other income reached ₹14,222 million versus ₹10,249 million; consolidated PAT was ₹1,311 million versus ₹1,033 million.

• Total expenditure increased 40.7% to ₹11,631.8 million; personnel costs rose 37.2% to ₹2,691.6 million and manufacturing and other expenses rose 42.6% to ₹5,269.8 million.

Outlook and guidance

• FY 2014 plans called for 125 new Domino’s stores and 18 new Dunkin’ Donuts restaurants; the longer-term Dunkin’ target was 80–100 restaurants in five years.

• Sri Lanka expansion target: 25–30 stores over three years, from six at March 31, 2013; plans emphasized phased rollout, cost control and operational efficiency.

• Management expected sustained growth from brand strength, infrastructure, value products and operational excellence, while noting that economic recovery would support future results.