InvestorQ : What explains the strong results of Jubilant Foodworks for the Dec-21 quarter?
Rashi Mehra made post

What explains the strong results of Jubilant Foodworks for the Dec-21 quarter?

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Archita Jajjoo answered.
3 months ago
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For the December 2021 quarter, Jubilant Foodworks reported 13.23% higher sales at Rs.1,211 crore yoy consolidated. In Q3, Jubilant opened 75 new Domino’s stores as activity picked up to pre-COVID levels. LFL (like for like) growth was 7.5%. Delivery and takeaway channel sales grew 128% and 148% while dine-in business grew 71.7% yoy. The first Popeye brand restaurant was launched even as Domino’s had 8.2 million app downloads in Q3.

Jubilant Foods

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 1,210.77

₹ 1,069.28

13.23%

₹ 1,116.19

8.47%

EBITDA (Rs cr)

₹ 215.99

₹ 190.26

13.52%

₹ 194.94

10.80%

Net Profit (Rs cr)

₹ 133.88

₹ 124.14

7.85%

₹ 120.24

11.34%

Diluted EPS (Rs)

₹ 10.14

₹ 9.41

₹ 9.11

EBITDA Margin

17.84%

17.79%

17.46%

Net Margins

11.06%

11.61%

10.77%

Operating profits were up 13.5% at Rs.216 crore for Dec-21 quarter. For Q3, EBITDA grew by 13.9% at Rs.317.40 crore while EBITDA margins improved by 24 bps yoy at 26.6% in Q3. As a result, the operating margins improved by 5 bps from 17.79% in Dec-20 quarter to 17.84% in the Dec-21 quarter. OPM was also higher 38 bps on a sequential basis. The Board of Jubilant Foodworks has approved splitting the face value of the share from Rs.10 to Rs.2 i.e. 5 for 1.

Profit after tax (PAT) for Dec-21 quarter was 7.85% higher at Rs.133.88 crore on a consolidated yoy basis. To an extent solid operating performance percolated to the bottom line. The net profit growth is lower due to the company getting deferred tax credit in the Dec-20 quarter. The higher base led to lower growth in profits.

PAT margins fell by 55 bps from 11.61% in the Dec-20 quarter to 11.06% in the Dec-21 quarter. PAT margins were however higher by 29 bps on a sequential basis, but it was a quarter of robust performance by Jubilant.

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