iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Q3FY23 Review: Jubilant Foodworks: SSSG decline is here

2 Feb 2023 , 10:20 AM

Jubilant is going through a perfect storm – demand pressure, industry oversupply and cost inflation. The performance has probably bottomed out with SSSG estimated to be negative (0.3% like-for-like growth – LFL) and Ebitda margin at 22%. However, recovery will be slow and steady with consensus cuts likely continuing for two to three quarters.

JUBI in Q3FY23 reported muted sales growth of 10% YoY, driven largely by avg. store growth of 18%. Sales per avg store fell by 6% YoY and by 2.4% on 3yr Cagr. This was led by weak demand in November and some improvement in December, with January being similar to December. Ebitda margin of 22% contracted by 457bps YoY and was below IIFLe of 24.5%, driven by gross margin pressure and negative operating leverage. Store opening was healthy at 60 new Domino’s stores (YTD-194).

Poor results corroborate IIFL Capital Services view that CY23 will be a tough year for QSR sector, due to a combination of lacklustre demand and excess supply of store additions. And as seen in earlier periods, once demand slowdown sets in, it persists for a few quarters. 

Analysts at IIFL Capital Services cut their EPS by a further 4%-5% and maintain REDUCE with a TP of Rs450.

Related Tags

  • Jubilant Foodworks
  • Jubilant Foodworks Q3
  • results Q3
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.