Jubilant FoodWorks (JUBLFOOD) Q4 16/17 earnings summary

Executive summary

• FY17 brought a strategic reset toward profitable expansion, cost rationalisation, technology investment and improved customer experience amid weak discretionary spending and demonetisation.

• Total income rose 5.7% to ₹25,605 million, while PAT fell to ₹673 million; same-store sales growth (SSG) was negative 2.4%.

• Expansion was recalibrated to ROI-led growth; year-end networks were 1,117 Domino’s restaurants in India and 63 Dunkin’ Donuts restaurants.

Financial highlights

• Standalone revenue from operations increased 5.6% to ₹254,607 lakh; total income was ₹256,055 lakh versus ₹242,154 lakh in FY16.

• Standalone EBITDA declined 9.3% to ₹24,659 lakh; EBITDA margin fell to 9.7% from 11.3% in FY16.

• Standalone PBT fell 38.5% to ₹9,775 lakh and PAT fell 36.9% to ₹6,725 lakh; consolidated PAT was ₹5,777 lakh versus ₹9,689 lakh.

• Q4 included a one-time ₹1,217 lakh separation cost for manpower rationalisation; excluding this exceptional item, reported PBT was ₹9,775 lakh.

• Standalone operating cash flow was ₹21,336 lakh; cash and cash equivalents closed at ₹3,243 lakh.

Outlook and guidance

• FY18 priorities: profitable growth, calibrated network additions, cost rationalisation, operational efficiency, product and process innovation, and online-led marketing; expansion remains tempered by slow consumer recovery.

• Greater Noida’s multi-category supply chain centre is expected to improve cost control and efficiency; its capacity is 600 restaurants.

• Returns from technology, business excellence and consumer-experience initiatives are expected to unfold over the next two to three years.