Jubilant Foodworks Q1FY22 Result Analysis and Conference Call Highlights

Q1FY22 Result Analysis: Jubilant Foodworks Analysis

1) Q1FY22 Result: Jubilant Foodworks Quarterly Results

• Revenue from Operations of the business has grown by 130% YoY to Rs. 893 Cr. in Q1FY22 from Rs. 388 Cr. in Q1FY21. Quarter-on-Quarter the revenue has dropped by 14% from Rs. 1,038 Cr. in Q4FY21.

• The EBITDA of the company for the quarter ended 30th June 2021 stands at Rs. 212 Cr. up by 764.2% YoY and down by 15.5% QoQ from Rs. 24.6 Cr. and 251 Cr. in Q1FY21 and Q4FY21 respectively.

• The EBITDA margin of the company has expanded by 1,750 bps YoY from 6.3% in Q1FY21 to 23.8% in Q1FY22 and is back on a normal level. The EBITDA margin of the company was 24.2% at the quarter ended 31st March 2021, hence down by 40 bps QoQ.

• Year-on-Year, the Profit Before Tax has gone from the negative territory of -97.7 Cr. in the quarter ended 30th June 2020 to Rs. 90 Cr. in the quarter ended 30th June 2021. PBT has gone down by around 35% QoQ from Rs. 138 Cr. in Q4FY21.

• The Net Profit of Jubilant Foodworks for Q1FY22 stands at Rs. 69.1 Cr. against the loss of Rs. 74.5 Cr. in Q1FY21. The same has gone down by -34.3% QoQ from Rs. 105 Cr. in Q4FY21.

• The Net Profit Margin of the company for Q1FY22 is 7.7%.

Jubilant Foodworks- Q1FY22 Result

2) Network: Jubilant Foodworks Ltd Share Price

• The company opened 29 new stores in India, which included 20 new stores for Domino’s, 3 Stores each for Hong’s Kitchen, Ekdum!, and Dunkin Donuts.

• No stores were closed in this quarter in any of the categories, hence net new addition remains clear.

• Highlights of the net new additions and number of stores of each category are as follows:

a) Domino’s:

• With the net new addition of 20 new stores in Q1FY22, the total store count stands at 1,380 as of 30th June 2021.

Jubilant Foodworks- Domino’s Network

b) Dunkin’ Donuts:

• With the net new addition of 3 new stores in Q1FY22, the total store count stands at 27 as of 30th June 2021.

                                                                                                                           Jubilant Foodworks- Dunkin’ Donuts Network

c) Hong’s Kitchen and Ekdum!

• With the net new addition of 3 new stores in Q1FY22, the total store count stands at 27 as of 30th June 2021.

Jubilant Foodworks- Hong’s Kitchen and Ekdum!

d) Online Ordering

3) Internation Highlights: Jubilant Foodworks Stock Price

a) Sri Lanka:

• Opened 2 new stores in Q1FY22, taking the total count to 28 stores

• Overall system sales growth y-o-y in Q1: 55.4%.

• Delivery sales recovery: 45.6%

• Takeaway sales recovery: 86.8%

• Dine-in sales recovery: 124.2%

• Average OLO contribution to delivery sales(%)-50.6% from 28% in Q1FY21

b) Bangladesh:

• Opened 2 new stores in Q1FY22, taking the total count to 7 stores.

• Overall system sales growth y-o-y in Q1: 111.2%

• Delivery sales recovery: 79.5%

• Takeaway sales recovery: 74.6%

• Average OLO contribution to delivery sales(%)-67.9% from 69.5% in Q1FY21

Earnings Call Highlights: Jubilant Foodworks Share Price History

Q1FY22 Highlights:

• Despite Less Operating Hours, multiple restrictions, mobility restrictions, closure of dine-in facility due to the second wave of Covid-19, sales recovery in Domino’s was led by strong growth in the delivery channel.

• Sales Recovery for Q1 at almost 94%.

• The Company expects an improvement in operational performance with the downfall of the Covid situation, and easing of restrictions.

Business Prospects: Jubilant Foodworks Analyst Report

• The Business expects some significant structural changes in the category which will strengthen the profitability and positions of the company.

• The Company will make significant investments in its Supply Chain Network. Primarily it will increase the capacity in Bangalore and Mumbai.

• Next, The company plans to open 150 to 175 stores this year.

• The company believes that the foodservice market in India is at Inflection Point and hence in the next few years, there could be a period of market-making and strong growth.

• The Company plans to own around 3,000 Stores in India in the medium to long term.

• “The company believes that the company has the right strategy for driving profitable growth in this exciting (foodservice market) category and to transform into a multi-brand, multi-country food-tech powerhouse.”

• The company does not plan to enter into the Burger Market. Partially this will be only carried away by the 2 portfolio brands- Hong’s Kitchen and Popeye.

Jubilant Foodworks Network: Jubilant Foodworks Annual Report

• The company opened 29 new stores in India, which included 20 new stores for Domino’s, 3 Stores each for Hong’s Kitchen, Ekdum!, and Dunkin Donuts.

• No stores in any of the categories were closed this quarter.

• The pace of store opening was quite low this year as compared to past quarters due to pandemic-related challenges.

• The company’s plan for store expansion is majorly focused on improving customer experience rather than competing with the aggregators available in the market.

Hong’s Kitchen & Dunkin Donuts:

• The Company has reported a strong revenue recovery in the Hong’s Kitchen at Pre-Covid Levels.

• In Hong’s Kitchen category, the company is now looking for Volume Growth.

• The company expects normalcy in the operation of Dine-In services posts easing down restrictions which will be beneficial for Dunkin’s segments.

Digitization:

• The company intends to make digital and looking technology at the heart of everything they do.

• The ground behind using digital and general technology is to completely transform the customer’s experience, internal employee experience and to drive operational, and business efficiencies.

• For this, the company is building a large digital team along with the Digital Data Science Team.

Popeye’s:

• The chicken category is one of the largest segments in the country with high growth potential both on penetration and frequency.

• The franchise might get launched in the market before the end of this year.

• The Company expects faster growth in Popeye while comparing to the brands in a similar market.

Others: Jubilant Foodworks Share Price

• Restaurants seek to bring greater access to their customers and get a lot more control over the business to get more customer data and insights. Restaurants will continue to invest in building their digital channels, also it will play a role in both the spaces like partnering with aggregators and on their digital space.

• Reasons of Food-Service Market in India at an Inflection point:

• Covid will drive movement from the unorganized sector to the organized sector.

• Within the Organized Sector, the consumers will navigate and seek trusted brands wherein quality and hygiene things have a greater role which will drive the share upwards of the credible trusted brands.

• Omni Channel Behaviour of the customers and the embracement of the delivery and takeaway mode in the last 15 months.

• Growth in Digital Ordering.

• In terms of online ordering, the customers seek trustable brands.

• The company has taken small pricing action at the end of June to cover up the inflation.

• Jubilant has increased the promotion and discount intensity but under the ordinary scope of the business.

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