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Jubilant Foodworks Q1 earnings preview: Cricket World Cup, IPL to support sales

Updated : July 24, 2019 08:26 AM IST

Jubilant Foodworks will report its June-quarter earnings on Wednesday and analysts expect the food service company to report double-digit profit and revenue growth.

  • The street is working with revenue growth of around 11 percent at Rs 950 crore.

  • The EBITDA likely to grow slightly higher at 13.5 percent, that means the margin expansion on the cards to the tune of 40-50 basis points (bps).

  • The analysts are also looking at a net profit growth of around 16-16.5 percent, Rs 87 crore is the number that one should be watching out for.

  • The same-store sales growth (SSSG), which tell us how many more pizzas were sold from the same stores, is seen around 6-8 percent on a high base of 25.9 percent.

  • The revenue growth moderates on account of a high base but it stays supported because of the two events— Cricket World Cup 2019 (CWC) as well as IPL.

  • Price rationalisation that the company has done to their Everyday Value pizzas means the gross margins expand by about 80-100 bps.

  • The company has initiated a few new concepts like Hong’s Kitchen, which is a Chinese restaurant, and may weigh in on the sharp EBITDA margin expansion which is why the analysts are working with just around 30-40 bps.
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