Latest news with #SameerKhetarpal
Yahoo
15-05-2025
- Business
- Yahoo
Jubilant Foodworks Ltd (BOM:533155) Q4 2025 Earnings Call Highlights: Strong Growth Amidst ...
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jubilant Foodworks Ltd (BOM:533155) achieved significant growth in FY25, with group system sales reaching almost $1.1 billion and over 3,300 stores in operation. The company implemented free delivery, which led to record high new customer acquisition and increased sales. Domino's India EBITDA increased broadly in line with revenue growth, maintaining strong margins despite the increase in delivery mix. The acquisition of DP Eurasia has shown positive results with high system sales, healthy profitability, and high free cash flow generation. Jubilant Foodworks Ltd (BOM:533155) has accelerated its pace of new product innovation, introducing exciting new offerings that resonate with customers and drive incremental demand. The initial impact of free delivery led to a reduction in average ticket price, although this was later absorbed. There is a persistent gap between Domino's margins and stand-alone margins due to investments in emerging brands like Popeyes, Dunkin', and Hong's. The company faces challenges in the delivery business due to high competitive intensity, inflation in labor costs, and discounting pressures. Inflationary pressures are noted in key commodities such as cheese, oil, and coffee, which could impact costs. The Turkey business has experienced volatility in margins due to macroeconomic challenges and hyperinflation accounting. Warning! GuruFocus has detected 5 Warning Signs with BOM:533155. Q: What is Jubilant FoodWorks' outlook on the industry and its ability to continue gaining market share in FY26? A: Sameer Khetarpal, CEO and MD, emphasized that the company's structural focus on delivery, menu innovation, regional expansion, rapid store expansion, and a unique company culture are key drivers for gaining market share. He remains bullish on growth, citing the large unorganized market as an opportunity for continued penetration and expansion. Q: How sustainable is the recent improvement in dine-in and takeaway revenues? A: Sameer Khetarpal noted that the company is optimistic about dine-in growth, supported by high customer satisfaction scores and initiatives like the INR99 meal. He highlighted that dine-in is now growing faster than takeaway, and the company is committed to maintaining focus on enhancing the dine-in experience. Q: What are the challenges and strategies regarding the cost of running a delivery business? A: Sameer Khetarpal acknowledged the competitive pressures in delivery, especially in high-demand areas. However, he highlighted Jubilant FoodWorks' advantages, such as owning delivery bikes, higher deliveries per hour, and a supportive work environment for delivery associates. The company is focused on leveraging technology and operational efficiencies to manage costs. Q: How is Jubilant FoodWorks addressing geopolitical risks and macroeconomic challenges in Turkey? A: Sameer Khetarpal expressed confidence in the Turkish market, noting that the core business remains strong despite geopolitical risks. He highlighted Turkey's young population and growing consumer base as positive factors, and mentioned that the company is actively managing costs and exploring refinancing options to mitigate financial risks. Q: What is the company's approach to new product development and its impact on customer acquisition and daypart sales? A: Sameer Khetarpal discussed the success of new products like chicken wings and the INR99 lunch menu, which are driving customer acquisition and increasing sales during specific dayparts. He emphasized the company's focus on targeted product innovation to cater to different consumer needs and meal occasions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
14-05-2025
- Business
- Mint
Jubilant FoodWorks CEO confident Turkey ops unaffected by tensions with India
New Delhi: India's Fast-food giant Jubilant FoodWorks Limited (JFL), which operates more than 900 restaurants in Turkey, said it expects no negative impact on its Turkish operations despite the diplomatic strain between New Delhi and Ankara after "Operation Sindoor", and calls for travel ban to that country. 'I will not worry too much about macroeconomic factors or any geopolitical risk impacting Turkey," Sameer Khetarpal, CEO and MD of Jubilant FoodWorks, said during the company's post-earnings call on Wednesday. Jubilant FoodWorks holds the master franchisee rights for Domino's Pizza in Turkey through its subsidiary DP Eurasia NV. DP Eurasia is the exclusive master franchisee for Domino's Pizza in Turkey, Russia, Azerbaijan, and Georgia. Also read: Mumbai: Pizza delivery boy harassed by couple for not speaking Marathi As of the March quarter, Jubilant FoodWorks operated 906 stores in Turkey, including 746 for Domino's pizza chain and 160 for Coffy—a Turkish coffee chain. Overall, the company operates 3,316 stores, with 2,304 outlets in India alone. 'If you go to Turkey, they are oblivious to any political changes, whether it's for the brand Domino's and Coffy, which is actually a Turkish brand. They're not concerned about any geopolitical risk, whether it's tariffs or Russia-Ukraine or anything which is happening on the India-Pakistan border. The momentum in the food market and the consumer business in Turkey continues," Khetarpal told analysts. Despite fluctuations in dollar terms, Turkey's real GDP (adjusted for inflation) has consistently grown by 3% to 4%. In the past two-and-a-half years, inflation has eased, leading to lower interest rates This indicates improving macroeconomic conditions, Khetarpal added. 'I feel good about the macroeconomic situation in Turkey, and the core thesis that we had—it's the largest consumer base outside of Russia in Europe, and the youngest population, with almost three-and-a-half, four times per capita GDP versus India. Those things are all intact; and therefore you see very solid performance of both Domino's and Coffy in Turkey," he said. Also read: Pizza party or warning? Bankers working 110-hour weeks asked to 'do better' The comments follow India's recent conflict with Pakistan that saw countries such as China and Turkey openly come out and support Pakistan, while condemning India for the attacks on terror sites in the neighboring country. Consequently, there have been widespread calls to boycott Turkish goods and halt travel to Turkey. Online travel portals are reporting a surge in cancellations, and advisories have been issued warning travellers to avoid the country. Meanwhile, for the quarter ended 31 March 2025, the company's consolidated revenue grew 33% year-on-year to ₹2,103.2 crore. Profit for the period fell 76% to ₹49.33 crore on account of higher expenses as well as investments in overseas subsidiaries. Expenses during the quarter grew 32.3% to ₹2,044.9 crore. Its revenue from the international segment comprising Turkey, Azerbaijan and Georgia touched ₹480.2 crore during the quarter. Also read: Is quick commerce eating into the food delivery market? For the full year, JFL's revenue from operations grew 44% to ₹8,141.7 crore. It added 325 stores in the past twelve months. Jubilant FoodWorks Limited operates 3,316 stores across six markets—India, Turkey, Bangladesh, Sri Lanka, Azerbaijan and Georgia. The group has franchise rights for three global brands—Domino's, Popeyes and Dunkin', and two own-brands, Hong's Kitchen, and a Coffy in Turkey. The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.
