Jubilant Foodworks Limited Q4FY21 Result Analysis

Jubilant Foodworks Limited, India’s one of the largest foodservice company has announced its Q4FY21 results on Tuesday 16^th June 2021. Here is a detailed 6 Point analysis of the performance of the company in the last quarter of Financial Year 2020-21.

1. Q4FY21 Result:

• Jubilant Foodworks has reported consolidated revenue from operations of Rs. 1,038 Cr. in the quarter ended 31^st March 2021 against Rs. 909 Cr. in the quarter ended 31^st March 2020, amounting to growth of 14.2% YoY. Quarterly, revenue reported downfall by 2.9% from Rs. 1,069 Cr. in Q3FY21.
• The Consolidated EBITDA of the company is Rs. 251 Cr. in Q4FY21 which grew by 48.5% YoY from Rs. 169 Cr. in Q4FY20. Quarter-on-Quarter, there has been a de-growth of 10.4% from Rs 280 Cr. in the 3^rd quarter of FY21.
• The Consolidated EBITDA margin of the company stood at 24.2% in Q4FY21, up by 560 bps YoY from 18.6% in Q4FY20. The same was 26.2% in the quarter ended 31^st December 2020, resulting in the downfall of 200 bps QoQ.
• The Consolidated Profit Before Tax (PBT) of the company has increased by a huge 228.5% YoY in Q4FY21 to Rs. 138 Cr. from Rs. 42 Cr. in Q4FY20. Here also, the company has reported a fall of 16.4% QoQ in the PBT from Rs. 165 Cr. in Q3FY21.
• The Consolidated Net Profit of the company has also grown massively by 218.2% YoY from Rs. 33 Cr. in the quarter ended 31^st March 2020 to Rs. 105 Cr. in the quarter ended 31^st March 2021. Quarter-on-Quarter, the net profit has fallen from Rs. 124 Cr. in December Quarter of FY21.
• The Net Profit Margin (NPM) of the company has also shot up from 3.6% in March 2020 quarter to 10.1% in the March 2021 quarter. The NPM of the company was 11.6% in Q3FY21.

Jubilant Foodworks- Q4FY21 Result

2. FY21 Performance:

• The Consolidated Revenue from Operations for the full financial year 2020-21 stood at Rs. 3,312 Cr. against Rs. 3,927 Cr. in the last financial year, amounting to de-growth of 15.7%.
• The EBITDA of the company for FY21 is Rs. 771 Cr. down by 12% YoY from Rs. 876 Cr. in FY20.
• The Consolidated EBITDA Margin of the company stood at 23.3% in FY21 grew by 100 bps from 22.3% in FY20.
• The Consolidated Profit Before Tax (PBT) of the company is Rs.306 Cr. in FY21, which fallen by 24.1% YoY from Rs. 403 Cr. in FY20.
• Jubilant Foodworks reported a Net Profit of Rs. 231 Cr. in the year ended 31^st March 2021 against Rs. 279 Cr. in the year ended 31^st March 2020.
• The Net Profit Margin fell by 10 bps from 7.1% in FY20 to 7% in FY21.

Jubilant Foodworks- FY21 Performance

3. Network:

i) Domino’s:

• The company has Opened highest ever 50 new Domino’s stores for the second consecutive quarter
• The Total Store of Domino’s now stands at the mark of 1,360.
• Domino’s stores are having a presence across 293 cities in India.
• Here is the trend of the total number of stores and the net new addition of stores in every quarter for Domino’s:

Jubilant Foodworks: Domino’s Network

ii) Dunkin’ Donuts:

• In the last quarter of FY21, the company has opened 1 new store for Dunkin’ Donuts but has closed 4 stores overall which makes the net addition of Dunkin’s Donuts stores in a negative region.
• The total Dunkin’ Donuts stores at the year ended 31^st March 2021 stood at 24.
• Here is the trend of the total number of stores and the net new addition of stores in every quarter for Dunkin’ Donuts:

Jubilant Foodworks: Dunkin’ Donuts Network

iii) Hong’s Kitchen & Ekdum! :

• In the last quarter of FY21, the company has opened 1 store each for Hong’s Kitchen and Ekdum!
• The total store count of Hong’s Kitchen & Ekdum now stands at 12.
• Here is the trend of the total number of stores and the net new addition of stores in every quarter for Hong’s Kitchen and Ekdum:

Jubilant Foodworks: Hong’s Kitchen & Ekdum! Network

iv) Online Ordering:

• The Average Online Ordering Contribution to Delivery Sales (%) has grown from 81% in the Q1FY20 to 98.2% in the quarter ended 31^st March 2021.
• The Mobile Ordering Sales Contribution to Overall OLO has also increased from 89% in Q1FY20 to 97.4% in Q4FY21.
• Over the past 8 quarters, the Mobile Ordering App of Jubilant has also increased significantly from 21.6 million downloads in Q1FY20 to 57.3 million in Q4FY21.

Jubilant Foodworks: Online Ordering

4. Acquisition and Franchise:

i) DP Eurasia N.V.:

• Announced acquisition of 32.81% equity stake in DP Eurasia N.V., an exclusive master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan, and Georgia.
• DP Eurasia is one of the large master franchisees of Domino’s Pizza. It owns exclusive master franchisee rights in Turkey, Russia, Azerbaijan, and Georgia.
• DP Eurasia offers pizza delivery and takeaway/eat-in facilities at 775* stores which include 570 in Turkey, 192 in Russia, 9 in Azerbaijan, and 4 in Georgia.

ii) Popeye:

• Announced a landmark agreement to bring Popeyes to India, Bangladesh, Nepal, and Bhutan.
• Popeyes® is one of the largest chicken quick-service restaurants with over 3,400 restaurants in over 25 countries around the world.

5. International Business Highlights:

i) Sri Lanka:

• Opened 3 new stores in Q4FY21, taking the total count to 26 stores.
• Overall system sales recovery y-o-y in Q4: 123.2%.

• Delivery sales recovery: 150.5%
• Takeaway sales recovery: 146.9%
• Dine-in sales recovery: 66.6%

• Average OLO contribution to delivery sales(%)-45.6% from 17.7% in Q4FY20.

ii) Bangladesh:

• Opened 1 new store in Q4FY21, taking the total count to 5 stores.
• Overall system sales recovery y-o-y in Q4: 85.2%

• Delivery sales recovery: 136.5%
•  Takeaway sales recovery: 90.7%
• Dine-in sales recovery: 63.4%

• Average OLO contribution to delivery sales(%)-66.8% from 60% in Q4FY20

6. Q4FY21- Other Highlights:

• Opened 53 new stores including 50 new Domino’s Stores, 1 new store each for Hong’s Kitchen, Ekdum!, and Dunkin’s Donuts.
• Announced acquisition of 32.81% equity stake in DP Eurasia N.V., an exclusive master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan, and Georgia
• Announced a landmark agreement to bring Popeyes® to India, Bangladesh, Nepal, and Bhutan
• Growth in the revenue was driven by Domino’s Like-for-Like (LFL) sales growth of 15.1% and Same-Store Growth (SSG) of 11.8%.
• Domino’s witnessed continued momentum in Delivery and Takeaway channels which grew by 28.7% and 76.9% respectively.
• Final Dividend of Rs. 6 per equity share for FY21.
• Re-appointment of Mr. Pratik Rashmikant Pota as CEO & Whole-time Director of the Company for three years with effect from April 1, 2022, till March 31, 2025.
• Re-appointment of Mr. Berjis Minoo Desai as an Independent Director of the Company for the second term of five (5) consecutive years with effect from May 29, 2022, till May 28, 2027.