Jubilant FoodWorks Q4 Results Review - Weak Margin; Focus On Expanding The Store Network: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Jubilant Foodworks Ltd.’s sales grew 6% YoY to Rs 13.3 billion (in line) in Q4 FY24. Domino’s like-for-like turned positive after four quarters at 0.1% (in line). The delivery business performed well, growing at 12% YoY and increasing its share to 68%, while dine-in sales contracted 6% during the quarter. The waiver of delivery charges shifted dine-in demand to delivery. Domino’s added 67 new stores and entered 14 new cities in Q4. The company has a store network in 421 cities. The store expansion spree for Domino’s and other brands will continue in FY25.Due to the ongoing pressure on operational metrics (average daily sales) and reinvestment in the business, including waiver of delivery fees, the operating margin deteriorated further. Despite gross margin expansion (130 bp YoY to 76.6%), Ebitda margin contracted 100 bp YoY to 19.1%. Weak operating margin was further hit by higher deprecation (investments in backend). Profit before tax declined 45% YoY and margin came in at 3.8% in Q4 FY24. Consolidated revenue/gross profit/Ebitda was up 24%/26%/25% YoY due to DP Eurasia acquisition. However, higher depreciation (store additions) and interests (debt of Rs 9.5 billion for the acquisition) led to a 42% YoY dip in PBT. The quick service restaurant industry is witnessing demand challenges; thus, near-term growth metrics will be key monitorables. Reiterate Neutral with a target price of Rs 480..Click on the attachment to read the full report:.Jubilant Foodworks Reports Massive Q4 Profit Surge To Rs 208.24 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Jubilant FoodWorks Q4 Results Review - Weak Margin; Focus On Expanding The Store Network: Motilal Oswal

Sales in line; weak operating margin

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Jubilant FoodWorks Q4 Results Review - Weak Margin; Focus On Expanding The Store Network: Motilal Oswal

Sales in line; weak operating margin

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