Jubilant FoodWorks Q1 Results Review - LFL Remains Weak, Raw Material Recovery Visible: Motilal Oswal

Motilal Oswal Report

Jubilant FoodWorks Ltd.’s sales grew 6% YoY in Q1 FY24, driven by footprint addition. But weak like-for-like (-1.3% YoY) and store addition-related costs (employee and selling, general and administrative) led to a 9%/41% decline in Ebitda/profit after tax (in line).

The only silver lining is that raw material prices are peaking out, which should cushion margins.

The management’s efforts toward product innovations, faster delivery and store revamping should help Jubilant FoodWorks mitigate the market impact.

We estimate revenue/Ebitda growth of 12/16% over FY23-25.

Jubilant FoodWorks’s own delivery system, back-end advantages, the robust balance sheet, and the loyalty program give it a competitive edge. Retain 'Buy' on the stock.

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