Jubilant FoodWorks (JUBLFOOD) Q4 13/14 earnings summary

Executive summary

• FY2014 income rose 22.4% to Rs 17,328 million, but softer same-store sales and inflation reduced margins and earnings.

• Expansion continued across Domino’s Pizza and Dunkin’ Donuts, backed by restaurant growth, new commissaries, menu innovation and online ordering.

Financial highlights

• Standalone total income was Rs 17,328 million versus Rs 14,153 million; EBITDA rose to Rs 2,551 million from Rs 2,444 million.

• Standalone PBT declined 4.9% to Rs 1,877 million; PAT fell 6.9% to Rs 1,258 million from Rs 1,351 million.

• Consolidated sales and other income increased to Rs 17,457 million from Rs 14,222 million; consolidated PAT decreased to Rs 1,182 million from Rs 1,311 million.

• Standalone total expenditure rose to Rs 15,451 million from Rs 12,179 million, reflecting store growth, inflation and higher marketing spend.

Outlook and guidance

• FY2015 plans call for 150 new Domino’s Pizza restaurants, all using the Pizza Theatre format, and 25 new Dunkin’ Donuts restaurants.

• Continued priorities include deeper market penetration, product and technology innovation, infrastructure expansion and consumer engagement.

• Management expected improved performance with a macroeconomic upturn, while describing the subdued trading environment as a short-term phase.