Jubilant Foodworks Q2: Revenue rises 5.15%, but net profit declines 26% to Rs 97.20 crore

26 Oct 2023 , 01:54 PM

On October 25, Jubilant Foodworks Ltd. disclosed a consolidated net profit for the September quarter of FY24 of Rs 97.20 crore, a decrease of 26% from Rs 131.52 crore during the corresponding period in the previous year.

According to a regulatory filing, the company’s overall sales increased to Rs 13,68.63 crore from Rs 1,301.48 crore in the same quarter last year, a 5.15% increase.

‘The growth is still driven by orders, with high levels of customer involvement, and the decline in ticket sales has been stopped.’ Additionally, a press release from Mr. Sameer Khetarpal, CEO and MD of Jubilant FoodWorks Limited, stated that ‘the second consecutive quarter of sequential improvement in ADS of mature stores and Gross Margins are early indicators of structural improvement in the health of our business.’

In the second quarter of FY24, earnings before interest, tax, depreciation, and amortization (EBITDA) totaled Rs 280.7 crore, with a margin of 20.9%. The business’s Same Store Sales increase (SSSG) for the second quarter decreased by 1.3% compared to an increase of 8.4% YoY.

Recently, Jubilant FoodWorks Limited increased the number of its stores. They launched sixty new stores under their several names, for a total of 1,949 locations. In particular, Domino’s India added 50 new locations and opened in three more cities, for a total of 1,888 locations spread over 397 cities.

‘We observed good like-for-like growth in the channel and traffic on the app exceeded our projections, demonstrating the return on our investments in technology and delivery channels. We’ll keep spending money on staff development, technology, and shop expansion in order to stay ahead of the curve and guarantee our long-term success. stated Mr. Hari S. Bhartia, Co-Chairman of Jubilant FoodWorks Limited, and Mr. Shyam S. Bhartia, Chairman.

There are currently 19.5 million members of Domino’s ‘Domino’s Cheesy Rewards,’ a loyalty program. Remarkably, loyalty program members accounted for more than half of the orders placed in September 2023. Additionally, the company reported a 17.8% growth in quarterly app downloads, totaling 10.6 million, a record high. There were 10.8 million active users of the app each month, according to reports.

The company expanded its network to 23 stores and saw an astonishing 85.6% surge in system sales in Bangladesh. By comparison, Sri Lanka saw a gain in system sales of only 2.0%. But, Domino’s in Sri Lanka reached a noteworthy milestone when it became the country’s fastest QSR to reach 50 locations.

As a member of the Jubilant Bhartia Group, Jubilant FoodWorks Limited is the largest foodservice firm in India. Established in 1995, the firm is the sole owner of the master franchise rights from Domino’s Pizza Inc. to expand and manage the Domino’s Pizza brand in Bangladesh, Nepal, India, and Sri Lanka.

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