Jubilant FoodWorks Limited (JFL), a leading food service company and Master Franchisee of Domino’s International* opened 16 new stores in Q3 FY2010. The company opened 55 new stores in nine Months for FY2010.
The number of cities covered as on 31 December 2009 at 65 as compared to 43 as on 31 December 2008. Jubilant Foodworks expects FY 2010 profit at Rs.32 crores
JFL is confident of delivering such strong growth-oriented performance on a sustainable basis going forward. Over the last several years the Company has developed a unique model for the Indian market that is now well established, profitable and growing. The nascent business risks are behind the Company and the focus now is on achieving sustainable and solid growth. The Company has very healthy cash flows from operations which it is deploying to drive growth going forward. Expansion through internal accruals will lead to stronger value accretion to the shareholders of the Company.
In the current year and moving to the next quarter the Company believes that it will maintain its growth momentum thus reporting an outstanding performance in its year of listing. For FY2010 the Company expects revenues to range between Rs.4,150-4,200 million resulting in an increase of 48% to 50% compared to the previous year, EBITDA is expected to be ~ Rs.650 million implying an upside of 87 per cent and PAT at Rs.320 million, translating to a growth of about 375 per cent.
The outlook for the future is even brighter as JFL is consistently enhancing the scale and size of operations. JFL plans to continue its network expansion by not only opening new stores but also by penetrating further into existing cities. In FY2010, the Company plans to open 65-70 new stores, out of which it has successfully opened 55 stores as of 31 December 2009. JFL continues to seek new opportunities for growth; placement of stores in corporate campuses, food courts and shopping malls also provide potential for expansion for JFL. With strong potential in Quick Service Restaurant (QSR) industry and given JFL’s foothold in the pizza market, the Company has in place an ideal formula for sustained growth going forward.
Source: Equity Bulls