Annual Report Review | Jubilant Foodworks Limited Financial Year 2018-19

Jubilant Foodworks Limited

Jubilant foodworks Limited operated by Bharti group is India's largest food chain operating company. It has exclusive rights to operate and develop the following :

• Domino's Pizza - exclusive rights in (India, Sri Lanka, Bangladesh and Nepal)

• Dunkin donuts : exclusive rights in India

• Hong's kitchen : Recently entered in Chinese cuisine segment hong kitchen.

Brands that JFL operates:

Domino's Pizza

• India second biggest market after US
• Differentiated brand USP : 30 minutes or free.
• In Sri Lanka, JFL has 22 restaurant outlets of Domino's. 
• In Bangladesh, JFL has joint venture with Golden Harvest QSR group.

Dunkin donuts 

• Company operates 31 Dunkin Donuts restaurant in India. 

Hong's kitchen

• Recently entered in Chinese cuisine segment.

It is operating in 273 cities with the restaurant count of 1259

• Supply chain centres (SSC)    : 8
• Distribution centre                   : 3
• Employees                                : 28,286 
• ROCE                                         : 39.9 %
• Dividend for equity shares      : Rs 5

Financial performance overview

• Operating revenue                  : 3,530 Cr
• EBITDA                                     : 607 Cr  growth of 36% from last year
• Profit after tax                        : 322 Cr growth from last year 56.4 percent 
• dividend issue                       : 5 Rs per share
• Growth in operating revenue : 18.5% year on year

102 new Domino's Pizza outlets opened. 

LEADERSHIP OF JFL

MANAGEMENT TEAM OF JFL

Future plans of company

• Improving dine-in and delivery services.
• Transforming JFL to strong food-Tech company.
• Scale up Dunkin donuts and hong kitchen.
• Nurture strong international business in Sri Lanka, Bangladesh and others.

FY-19 STRATEGIC PILLARS 

Product and innovation : 

Innovation in dine-in and delivery facilities. 

New beverage partner Pepsico lead to increase in customer demand.

Value for money :

Everyday value offer was a great success. Launched online delivery (olo) and new combos gathered significant attention. 

Customer experience : 

• To increase customer experience, we have offered all night Railway ordering.
• Exceptional improvement in delivery time and centralised Call Centre for ordering made restaurants provide uninterrupted service to customers.
• Digital and Technology : Re launched new more user-friendly Domino's app and online ordering program (olo) resulted in 17.8 million Domino's mobile app download and total delivery order rose to 75%.
• Dunkin donuts profitability focus on Cost Optimisation and growth efforts to gradually push Dunkin donuts in a profitable territory. 

CORPORATE SOCIAL RESPONSIBILITY 

Total cost spent on CSR activities : 3.8 Cr

COMPANY OVERVIEW

Key strength

• Long brand equity 
• Large market spread over 26 states and 5 union territories and 273 cities in India 
• Delivery expertise 
• Deep innovation capability 
• Strong National supply chain network 
• Growth in technology, data science and digital infrastructure.

INDUSTRY REVIEW

Indian food service industry (FSI)

Food service in India is value $61 billion and stands third after Indian retail and Insurance sector. It is estimated to grow 5,99,782 crores by 2020-23 at CAGR of 9%.

QSR (Quick Service Restaurants)

QSR holds largest share in FSI market organised QSR is worth 32,880 crore in FY-19. The chain segment contribute 55% of the organised QSR market while standalone segments accounts 45%.

DEMAND DRIVERS FOR COMPANY

Key Megatrends driving growth

Improving business prospect
Making order two to three clicks and reduction of GST in restaurant services acted as tailwind to FSI market.

Innovation and differentiation

Rapid digitalization
Rapid digitalization help us improve customer relations as review, rating and feedback are now available online. These detailed feedbacks helps us know our weakness and to work upon them. 

New and Evolving formats
Evolving formats like dine-in, in-mall outlet and drive-through provide customer easy access to eating out.

Large focus on value meal
Eating outside is becoming a regular practice rather than occasionally indulgences. Keeping in mind this change, range of value added offers which include Loyalty program and cash back offers are launched. 

Challenges of FSI

Availability of trained and skilled manpower, high attribution rate, rising rentals, inadequate supply chain,  infrastructure, over licensing, etc are the key challenges faced by various players in FSI industry.

BUSINESS REVIEW

Product and innovation

Added multigrain crust to the Pizza menu enhanced the product portfolio. 

Pizza add ons

 Crimple fries, crunchy potato strips, cheese are added to Pizza under same price. 

In cricketing season Pizza named on top cricket teams of the world African Peri Peri Veg, African Peri Peri chicken (named after South African cricket team). Similar for countries like Australia, West Indies, England, India.

Winter campaigns include Khushiyon Ki delivery, Kabhi Bhi Kahin Bhi. Winter campaigns : cheese Burst Pizza and cocoa lava cake for just Rs 49.

Customer experience

• Centralised Call Centre for order placement
• Improvement in interior design of Dominos Pizza outlets
• Siachen delivery- keeping in mind sacrifice of Indian soldiers, Dominos celebrated Republic Day 2019 with army troops in Siachen (20,000 ft above sea level).
• All night delivery
• Tye-up with IRCTC to deliver pizza on train journey. 

Financial review

SALARY TO TOP OFFICIALS 

Total salary to top officials : 18.85 Cr

FINANCIAL DETAILS 

Profit after tax  :  2,980 Cr

DISPUTES/PROBLEMS

Total cost the company may have to pay if found guilty in all the cases : 96.99 Cr

STANDALONE  BALANCE  SHEET 

Total assets increase by     : 345.87 Cr

Total liabilities increase by : 66.06 Cr

Total equity increase by      : 279.81 Cr

(Growth rate for FY 18-19)

Growth in total asset    :   22%

Growth in total liability :   12.6%

Growth in total equity   :   26%

Liability growth 

STANDALONE  PROFIT & LOSS  STATEMENT

Total increase in income    : 574.41 Cr

Total increase in expense  : 385.25 Cr

Total increase in profit       : 116.40 Cr

(Growth rate for FY 18-19)

Growth in income    : 19.1%

Growth in expense  : 14.3%

Growth in profit       :  56.3%

STANDALONE CASH FLOW STATEMENT 

Cash at beginning of year  : 7659.82

Cash flow from operations : 43387.82

Cash flow from investing    :(-44587.38)

Cash flow from financing    :(-3976.28)

Cash at the end of Year       : 2483.98 lakhs

At the end of financial year, Company holds cash and cash equivalent of 24.84 Cr.

CONSOLIDATED BALANCE SHEET 

Total assets increase by     :  358.99 Cr

Total liabilities increase by :  64.51 Cr

Total equity increase by      :  294.48 Cr

(Growth rate for FY 18-19)

Growth in total asset    :   23.9%

Growth in total liability :   12.19%

Growth in total equity   :   30.43%

CONSOLIDATED PROFIT AND LOSS STATEMENT

Total increase in income    :  569 Cr

Total increase in expense  :  382.4 Cr

Total increase in profit       :  121.7 Cr

(Growth rate for FY 18-19)

Growth in income    : 18.7%

Growth in expense  : 13.96%

Growth in profit       :  62%

CONSOLIDATED CASH FLOW STATEMENT 

Cash at beginning of year  : 7599.09

Cash flow from operations : 42564.70

Cash flow from investing    :(-45749.12)

Cash flow from financing    :(-1670.47)

Cash at the end of Year       : 2744.2 lakhs

Company holds cash and cash equivalent of 27.442 Cr.

TOTAL DEBTS 

The company has no debt.

SHAREHOLDING PATTERN

Promoter's shareholding at the beginning of the year : 44.94%

Change in promoter's Shareholding : (-3)%

Promoter's Shareholding at the end of the year : 41.94%

HOLDING IN SUBSIDIARIES 

Subsidiary 

• Jubilant Foodworks Lanka (Private) Limited (100% holding of parent company)
• Jubilant Golden Harvest Limited (51% holding of parent company)

DEEP INSIGHT INTO SUBSIDIARIES 

All the above information is taken from official jubilant Food official website. It is just for informative purpose. To download the full annual report click here .