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Jubilant Foodworks Q1 earnings preview: Cricket World Cup, IPL to support sales
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Jubilant Foodworks Q1 earnings preview: Cricket World Cup, IPL to support sales
Jul 23, 2019 11:26 PM

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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