Jubilant Foodworks Q4 net up 14%; misses estimates

Moneycontrol Bureau

Jubilant Foodworks, the operator of Domino's Pizza and Dunkin' Donuts outlets in India, reported a lower-than-expected 14 percent year-on-year rise in fourth quarter net profit at Rs 33 crore, sending shares down more than 9 percent to a 52-week low of Rs 999.55 on NSE.

Net sales in Jan-March increased 29 percent to Rs 366 crore.

Analysts on average had expected the company to report a net profit of Rs 37 crore on revenue of Rs 384 crore, according to a CNBC-TV18 poll.

The company's EBITDA (earnings before interest, taxes, depreciation and amortization) of Rs 61 crore (up 17 percent) was also below analysts expectation of Rs 70 crore. Operating profit margin was at 16.7 percent, compared with street expectation of 18.3 percent and 18.5 percent margin in the year ago quarter.

Jubilant Foodworks opened 24 new Domino's Pizza outlets in Jan-March, and had 576 outlets as of March 31. The company is now present in 123 cities, with the network extending to new cities like Satara in Maharashtra, Warangal in Andhra Pradesh, Hubli in Karnataka and Phagwara in Punjab.

Domino's same-store sales (sales at stores open for at least one year) rose 7.7 percent in the fourth quarter, sharply lower than 16.2 percent growth in FY13 and 26.3 percent in the year ago quarter.

"While overall revenues witnessed healthy growth, sales during the quarter reflect the impact of economic factors, constraining consumer spend leading to lower than anticipated rate of customer additions, which in turn impacts same-store sales growth," Jubilant said.

The company has also opened 10 Dunkin' Donuts outlets and it plans to scale the brand in a "steady manner"

FY2014 OUTLOOK

Jubilant Foodworks plans to open 125 new Domino's Pizza outlets and 18 Dunkin' Donuts restaurants in the current financial year.

"Expansion of stores and geographic presence will remain prime focus for Jubilant Foodworks. Efforts to fortify foothold in existing markets and tapping new geographies remain strong," it said.

Investment in business infrastructure will also remain a focus area, it added.