Jubilant FoodWorks Q1 results: profit down 26% year over year to Rs 75 crore

26 Jul 2023 , 12:28 PM

On Tuesday, Jubilant FoodWorks, the company that owns the Domino’s pizza brand in India and a few other nations, announced a 25.5% year-over-year (YoY) decline in its standalone June quarter earnings at Rs 75.2 crore, but an increase of 97 bps sequentially in its EBITDA margin. The pizza vendor recorded a 5.6% YoY increase in revenue during the quarter, reaching Rs 1,309.7 crore.

Its profit after tax (PAT) margin increased sequentially by 195 bps to 5.7%, while its EBITDA margin increased sequentially by 97 bps to 21.1%.

Sales through Domino’s Delivery channel, which rose by 8.4%, were the main factor in the growth. The average daily sales of mature stores were Rs 81,049. This represents a 2.7% consecutive increase. LFL (like for like) growth for The Domino’s came in at -1.3%.

Jubilant said it was able to increase its operating margins sequentially despite a difficult inflationary environment because to higher productivity-led cost optimization initiatives.

‘In the current inflationary environment, our performance shows that we have maintained the strategic course we have chosen. The Jubilant Chairman Shyam Bhartia stated, ‘We continue to develop our value proposition even more, look inward to improve our systems and processes while increasing margins, and ultimately continue to make investments further to strengthen our unique competitive advantages in operations and technology.

The company added 30 new outlets to its network in India, bringing the total number of locations for all brands to 1,891. Domino’s India increased the size of its network to 1,838 outlets across 394 cities with the opening of 23 new stores and a new location.

The business added four more Popeyes locations and expanded into Manipal and Coimbatore, bringing the total number of locations across the network to 17 in four cities. With the addition of two more locations, Hong’s Kitchen now has 15 locations spread over three cities. One new coffee-first location of Dunkin’ was opened. Nine out of the company’s twenty-one locations are now in line with its new Coffee-first identity.

Sameer Khetarpal, the CEO and MD of Jubilant Food, stated that during the quarter, the fall in ticket size was stopped, app downloads and loyalty enrolments reached a record high, and they executed well to increase EBITDA margin by 97 bps compared to the previous quarter.

The company plans to open 200–225 new Domino’s locations and 30–35 new Popeyes eateries in FY24. For the Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal, it is the sole master franchise owner.

For feedback and suggestions, write to us at [e-mail]