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Time of India
05-05-2025
- Business
- Time of India
Jubilant FoodWorks set to outpace KFC, McDonald's in Q4 earnings
Jubilant FoodWorks , the operator of popular brands like Domino's Pizza and Dunkin' Donuts , is expected to report strong sales growth for the March quarter, outpacing rivals such as KFC , McDonald's , and Burger King while the broader Indian fast-food sector grapples with inflation-driven consumer belt-tightening and intensifying local competition. According to multiple analysts cited by Reuters, same-store sales for American fast-food chains are likely to post flat to mid-single-digit growth, weighed down by reduced consumer spending despite aggressive promotional offers. In contrast, Jubilant has already disclosed a 12.1 per cent rise in like-for-like sales in India for the quarter. Analysts credit Jubilant's performance to its focus on digital channels, strategic discounts through third-party platforms, and the removal of delivery charges for app-based orders. These initiatives, coupled with investments in 20-minute in-house delivery, have helped the company reduce reliance on aggregators and boost customer engagement. 'Jubilant is performing the best of the lot,' said Karan Taurani, analyst at Elara Securities. 'Unlike KFC and McDonald's, which have little differentiation and still depend heavily on dine-in and third-party delivery, Jubilant has built a more robust digital ecosystem.' The broader sector's earnings season begins with Sapphire Foods, a KFC and Pizza Hut franchisee, set to report results on Wednesday. Other major players have yet to release their quarterly updates. Despite Jubilant's impressive 34 per cent year-on-year jump in consolidated revenue to 21.07 billion rupees (around $250.05 million), analysts warn that profit margins across the sector may remain under pressure. Higher raw material and marketing costs are expected to weigh on profitability, even as Jubilant aims to improve its core earnings margin through cost controls. While near-term challenges persist, some analysts remain optimistic about the sector's future. Preeyam Tolia of Axis Securities noted, 'From a long-term perspective, the fried chicken segment remains a key growth driver in India, though it may face headwinds over the next couple of quarters.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Fashion Network
24-04-2025
- Business
- Fashion Network
Unilever's India arm posts quarterly profit miss as foods, skincare demand slows
India's Hindustan Unilever reported fourth-quarter profit on Thursday that narrowly missed estimates, as rising expenses and weak urban demand for packaged food and affordable personal care products squeezed margins, sending shares down. The Indian unit of UK's Unilever, home to brands such as Pears bath soap and Surf Excel detergent, reported a standalone net profit of 24.93 billion rupees ($291.15 million) for the quarter ended March 31. Analysts had estimated 24.98 billion rupees, according to data compiled by LSEG. Surging food prices and slow wage rises have eroded urban consumers' purchasing power, pressuring earnings of top consumer goods makers such as Hindustan Unilever and Nestle India. Profits at Hindustan Unilever, which gets roughly 60% of its sales from urban India, have fallen in three of the last five quarters. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) margin shrunk 30 basis points to 23.1%, as total expenses for the firm shot up close to 3%. The stock was last trading down 3.9% at 2,330.4 rupees, nearly wiping out its gains this year. On the day, it has lost the most in terms of percentage on the benchmark Nifty 50. Revenue from its foods business - which accounts for a quarter of overall revenue - edged lower, with the company citing "continued category" pressure in its nutrition drinks business, which houses its Horlicks and Boost brands. The skin care and makeup segment posted a low-single digit sales decline as well, dragged by soft demand for affordable products. However, growth in its other segments led to a 2% increase in total revenue to 150 billion rupees. Hindustan Unilever projected a gradual sales volume-led growth in fiscal 2026, with performance in the first half likely to improve over the previous six months on new launches and improving demand. However, Axis Securities analyst Preeyam Tolia said its shift in focus towards volume-led growth could add further pressure on margins in the coming quarters.
