- 13 Feb 2025
- ICICIdirect Research
JUBILANT FOODWORKS (STANDALONE) REVENUES GREW BY 19%YOY TO RS1611.1CRORE
JUBLFOOD - 596 Change: -6.60 (-1.09 %)News: Jubilant Foodworks (standalone) revenues grew by 19%yoy to Rs1611.1crore driven by 12.5%yoy like-for-like (LFL) growth 12.5%, driven by 24.7% growth in the delivery business while dine-in revenues declined by 2.4%. Gross margins decreased by 159bps yoy to 75.1% (100bps qoq) due discounts on products to compete with food aggregators during festive season, inflation in the input prices due to higher cheese usage and cut on delivery charges. EBIDTA margins decreased by 145bps yoy to 19.4% (flat on QoQ) in-line with decline in the gross margins. EBIDTA grew by 11%yoy to Rs312.8crore. Higher depreciation charges due to addition of new stores (67 stores including 60 Dominos stores addition) during the quarter. PAT decreased by 33%yoy to Rs41crore. On the international front, the company’s revenues stood at Rs519crore, EBIDTA at Rs90crore and PAT at Rs9crore.
View: Overall Jubilant Foodworks Q3FY25 was below street expectation due to lesser than expected EBIDTA margins. Management targeting to improve gross margins by 100bps by H2FY26 through mix and relevant pricing actions. We expect standalone business EBIDTA margins to remain at 18-19% in the near term due to sustained competition from food aggregators and slow recovery in the dine-in business.
Impact: Negative