HDFC Securities: Jubilant FoodWorks Q2 Results Review - Recovery Continues; Priced-In
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HDFC Securities Report
Jubilant reported mixed Q2 with a marginal miss in revenue and beat in the margin.
Revenue/EBITDA was up -19/-9% YoY vs. the expectation of -17/-18%.
SSG was at -20% (HSIE -15%), while LFL was at -13% if we remove the store closure impact. Sequential growth was healthy (much better than peers), as system sales recovered to 85/92/96% of last year in Aug/Sep/Oct.
Recovery has been driven by strong growth in delivery and takeaway channels, as dine-in has continued to remain under pressure. Delivery charges, along with benign raw material, were partially compensated by EDV offers; still, gross margin expanded by 350/80bps YoY/QoQ to 79%. Ebitda margin expanded by 286bps YoY.
We slightly increase EPS for FY21/22/23 to reflect better margin.
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