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Net Sales are expected to increase by 1.6 percent Q-o-Q (up 8.3 percent Y-o-Y) to Rs 669.3 crore, according to Motilal Oswal. Jubilant Foodworks to report net profit at 20.6 crore up 3.1% quarter-on-quarter.
The impact of demonetisation has showed up in the form of reduced phone orders for Domino's Pizza, Sachin Sharma, CFO of Jubilant Foodworks, which operates the franchise, told CNBC-TV18 today. "These headwinds are expected to continue for another 2-3 months."
Net Sales are expected to decrease by 1.4 percent Q-o-Q (up 3.5 percent Y-o-Y) to Rs 660 crore, according to HDFC Securities.
Net Sales are expected to decrease by 12.4 percent Q-o-Q (down 8 percent Y-o-Y) to Rs 583.2 crore, according to Motilal Oswal.
Net Sales are expected to decrease by 6.8 percent Q-o-Q (down 2.1 percent Y-o-Y) to Rs 620.5 crore, according to Edelweiss.
In an interview to CNBC-TV18, Ajay Kaul, CEO of Jubilant Foodworks spoke about the results and his outlook for the company.
Jubilant Foodworks, which operates Domino's Pizza and Dunkin Donuts chains in India, is expected to report positive same-store-sales-growth (SSSG) in Q2 against degrowth of 3.2 percent in previous quarter and growth of 3.2 percent in Q2FY16. The management had expected to improve company's SSSG in July-September quarter.
Despite a dismal performance in the first quarter of FY17 where its same-store sales growth went into the negative territory for the first time in past seven quarters, Jubilant FoodWorks is confident of an improved show and a positive same-store sales growth in the second quarter.
Brokerage firms like JP Morgan, Credit Suisse and Morgan Stanley are overweight on the Domino's Pizza maker hoping for a positive growth in Q2.
Net Sales are expected to up 13.9 percent Y-o-Y to Rs 649.8 crore, according to Axis Securities
Jubilant FoodWorks reported a 6.56 percent decline in standalone net profit to Rs 29.46 crore and a 13.99 percent rise in net sales to Rs 617.83 crore in the fourth quarter.
On the positive side, the company‘s share of online orders as a percentage of total orders has risen to 41 percent in the March quarter compared to 29 percent in the September quarter
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) may grow 10.3 percent to Rs 77 crore but margin may see contraction at 12.1 percent against 12.9 percent YoY, impacted by high employment benefits and rent.
Ajay Kaul, CEO, Jubilant Foodworks in an interview to said, “We are fortunate that we are ahead of the curve and are registering a small single-digit growth on same store basis.â€
Weak consumer environment and company specific factors may hamper growth but delayed festive season, holidays likely to partially counter subdued demand. Increase in competitive intensity could likely see higher promotional offers.
Ravi Gupta, CFO of Jubilant Foodworks says the general consumer sentiment has been negative for the quarter and the expected recovery still remains protracted.
Analysts expect same-store-sales growth (SSSG) of 5.5-6 percent for the quarter against 4.6 percent in preceding quarter and negative 5.3 percent in year-ago period. SSSG is likely to benefit from low base in year-ago period and price hikes during the quarter.
Ajay Kaul, CEO, Jubilant Foodworks explains how the psychological shift of consumers‘ preference from concept of dine-in to food deliverance is impacting the two businesses individually.
Analysts polled by CNBC-TV18 expect same-store-sales-growth (SSSG)of 6-8 percent in Q1. Gross margins are likely to reflect advantage of soft commodity prices but store addition costs may partially weigh down on margins. Rent is likely to remain steady without significant hikes while higher tax burden may impact bottom line.
In an interview to CNBC-TV18, Nischal Maheshwari of Edelweiss, says capital goods and private banks will post stronger numbers while metals and cement Q1 results would be a drag on the market.
The company would stick to its plan of opening 150 Domino‘s and 8 Dunkin Donuts restaurants in FY16, said Ravi Gupta, CFO, Jubilant Foodworks.
Analysts are expecting a steady quarter but demand may not witness sharp uptick. However, same-store-sales (SSS) growth may be at 2-4 percent in fourth quarter versus a de-growth of 3.4 percent year-on-year. Revenue growth is likely to be further aided by newly added Dominoes and Dunkin stores.
The company maintains its store expansion plans for 150 Dominos stores and 30 Dunkin stores in FY15.
Jubilant Foodworks' profit after tax is expected to rise 6 percent year-on-year to Rs 35.6 crore, according to the average of estimates of analysts polled by CNBC-TV18.
India-based food and beverages company plans to rollout 150 Domino's Pizza stores this fiscal. Store rollout guidance for Dunkin‘ Donuts has also been revised from 25 to 30, says Ravi Gupta, CFO of Jubilant Foodworks.