Jubilant Foodworks revenue surged on 20.5% in 2015 while EBITDA Margin decreased on 2.1 pp from 14.4% to 12.3%
14-05-2015 • About Jubilant Foodworks (
$JUBLFOOD) • By InTwits
Jubilant Foodworks reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 12.3% in FY2015 vs. 14.4% in FY2014 vs. 17.8% in FY2011
- Jubilant Foodworks has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's in pair with industry average of 13.7%.
- CAPEX is quite volatile: 2,872 in FY2015, 2,487 in FY2014, 1,916 in FY2013, 1,307 in FY2012, 718 in FY2011
- The company has highly profitable business model: ROIC is at 24.0%
- It operates with high leverage: Net Debt/EBITDA is -0.1x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jubilant Foodworks ($JUBLFOOD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,783 | 10,189 | 14,141 | 17,360 | 20,924 | 20.5% |
| EBITDA | 1,205 | 1,904 | 2,433 | 2,499 | 2,565 | 2.6% |
| Net Income | 717 | 1,033 | 1,311 | 1,182 | 1,111 | -6.1% |
Balance Sheet
|
|---|
| Cash | 89 | 109 | 305 | 242 | 379 | 56.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 718 | 1,307 | 1,916 | 2,487 | 2,872 | 15.5% |
Ratios
|
|---|
| Revenue growth | -73.6% | 50.2% | 38.8% | 22.8% | 20.5% | |
| EBITDA growth | 83.1% | 58.0% | 27.8% | 2.7% | 2.6% | |
| EBITDA Margin | 17.8% | 18.7% | 17.2% | 14.4% | 12.3% | -2.1% |
| Net Income Margin | 10.6% | 10.1% | 9.3% | 6.8% | 5.3% | -1.5% |
| CAPEX, % of revenue | 10.6% | 12.8% | 13.6% | 14.3% | 13.7% | -0.6% |
| ROIC | 58.0% | 62.1% | 49.8% | 33.0% | 24.0% | -9.0% |
| ROE | 46.5% | 42.4% | 36.1% | 24.1% | 18.6% | -5.6% |
| Net Debt/EBITDA | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x |
Revenue and profitability
Jubilant Foodworks's Revenue jumped on 20.5% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 6.8% to 8.3% in FY2015.
Net Income marign decreased slightly on 1.5 pp from 6.8% to 5.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 13.7%. Jubilant Foodworks showed small growth in CAPEX/Revenue of 0.90 pp from 12.8% in FY2012 to 13.7% in FY2015. It's average CAPEX/Revenue for the last three years was 13.9%.To secure this fast growth the company made large investments to CAPEX (112% of EBITDA).
Return on investment
The company operates at high and attractive ROIC (24.00%) while ROE is a bit lower (18.57%). ROIC decreased on 9.0 pp from 33.0% to 24.0% in FY2015. ROE decreased on 5.6 pp from 24.1% to 18.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 56.8% in FY2015.
Valuation
Jubilant Foodworks's trades at EV/EBITDA 39.5x and P/E 91.7x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Restaurants
Below you can find Jubilant Foodworks benchmarking vs. other companies in Restaurants industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
