Jubilant FoodWorks Q1 Results Review- Delivery Business Outperforms; Focus On Network Expansion: Motilal Oswal

Motilal Oswal Report

Jubilant FoodWorks Ltd. reported sales growth of 10% YoY to Rs 14.4 billion (in line) in Q1 FY25. Domino’s like-for-like was 3% (in line), and same store sales are also turning positive (at ~1.5-2.0%) after six quarters. Delivery business performed well, growing 16% YoY and improving the share to 69%, while dine-in contracted 6% YoY. Waiving of delivery charges transitioned dine-in demand to delivery.

Domino’s has added 34 new stores and entered six new cities in Q1. The store expansion spree for Domino’s and other brands will continue and plans to open 180 Domino’s stores in FY25.

Gross margin was up marginally (+10bp YoY to 76.1%), while Ebitda margin contracted 180 bp YoY to 19.3%. This contraction is attributed to increased investments in technology, supply chain enhancements, and adverse operating leverage.

Additionally, the company intensified its value proposition by offering free delivery.

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