Jubilant Foodworks 1QFY24 – Inline performance, Margins improve QoQ

Financial Performance

> Revenues grew by 5.6% YoY to Rs13.1bn (PLe: Rs13.2bn)

> LFL growth at -1.3%

> Gross margins contracted by 69bps YoY to 76% (Ple: 75.1%)

> EBITDA declined by 9.2% YoY to Rs2.8bn (PLe: Rs2.7bn); Margins contracted by 345bps YoY, expanded by 97bps QoQ to 21.1% (PLe:20.6%).

> Adj PAT declined by 41.1% YoY to Rs0.8bn (PLe: Rs0.8bn)

> ADS for mature stores grew by 2.7% to Rs81,049.

Other Updates

> Dominos store count stands at 1,838 in 1Q24. Added 22 new stores & entered into 1 new city during the quarter.

> Dunking Donuts store count stands at 21 in 1Q24.

> New businesses – Hong’s Kitchen/Popeye’s store count at 15/17 (+2/+4).

> OLO to Delivery sales ratio stands at 98.1% in 1Q24 vs 97.7% in 1Q23.

> Total app downloads stands at 132.3mn in 1Q24 vs 95.4mn/122.3mn in 1Q23/4Q23; Added 36.9mn/10mn downloads YoY/QoQ.

> Cumulative enrollment for Domino’s Cheesy Rewards stands at 16.8mn users in 1Q24 (13.6mn/10.6mn/7.2mn in 4Q23/3Q23/2Q23).

> SSG growth for Sri Lanka/Bangladesh stands at 13.1%/69.6% in 1Q24.

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JUBI reported inline numbers (LFL growth of -1.3%). Dine-in channel was flat vs 8.4% in delivery. RM Inflation remains elevated; though better cost optimization initiatives have led to margin expansion sequentially, also loyalty programme additions continue to scale up well (48% contribution in 1Q24), which helps retain customer stickiness during such times. We have an Accumulate rating on the stock.

Stock trades at 49.2x FY25 EPS

Concall scheduled today at 5pm

Exhibit 1. Revenues grew by 5.6%, while EBITDA margins contracted by 345bps YoY