Wednesday, June 19, 2024

Jubilant FoodWorks Reaches 2,000 Mark with 58 New Stores, But Profit Dips in Q3 FY24

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Jubilant FoodWorks, the biggest foodservice company in India, shared its financial results for the nine months and quarter ending December 31, 2023.

In the nine months to December 2023, their income was Rs. 40,096 million, up by 4.3%. They added 144 new stores, surpassing 2,000 stores in India. Gross profit reached Rs. 30,618 million with a margin of 76.4%. EBITDA was Rs. 8,398 million, and after-tax profit was Rs. 2,083 million.

For Q3 FY 2023-24, their revenue was Rs. 13,551 million, a 2.9% increase. Dominos’ delivery sales rose by 6.2%, with mature store daily sales at Rs. 80,111. Despite positive delivery performance, overall sales dropped by -2.9%, influenced by reduced dine-in.

Strategic initiatives like Project Vijay and cost control boosted profits. Q3 gross profit was Rs. 10,387 million with a margin of 76.7%. EBITDA was Rs. 2,827 million, and after-tax profit was Rs. 610 million with a margin of 4.5%.

Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited, said, “Sustained delivery growth, highest ticket in nine quarters without a price increase since last six quarters, adept cost optimization making way for investments behind category development, and the accelerated expansion of Popeyes as an additional growth driver were the distinctive highlights from our quarter. The commissioning of Jubilant Food Park Bangalore significantly elevates our operational capabilities, in-house integration with ONDC demonstrates our digital prowess and acquisition of majority stake in DP Eurasia unlocks a renewed, profitable growth trajectory.”

Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited, said, “A series of proactive, strategic decisions being taken on a continual basis is helping us navigate the muted demand environment well. The successful creation of a dedicated spending pool via Project Vijay for pizza category development, sharpening our on-ground executional capabilities, accelerated expansion of Popeyes network, and the continual reinforcement of our competitive strengths in delivery, technology, and supply chain are all key elements that will reignite the growth engine for our India business. The accretive DP Eurasia acquisition marks a new chapter of utilizing our Domino’s experience to aid their business and also in the process create additional value for our shareholders.”

With the addition of 40 new stores and entry in 10 new cities, Domino’s India expanded its network strength to 1,928 stores across 407 cities. The company stepped up the pace of network expansion in Popeyes with the opening of 10 new restaurants and entry in four new cities – Mysore, Mangalore, Cuddalore and Mohali – taking the network tally to 32 restaurants across 10 cities. In Hong’s Kitchen, four new stores and entry in one new city enhanced the network to 22 stores across four cities. In Dunkin’, four new stores were opened with entry in Lucknow, thereby serving Dunkin through 25 store across eights cities.

The enrolment to loyalty program – Domino’s Cheesy Rewards – reached 21.5 million and the loyalty order contribution crossed 53% in December. Consumer engagement remained healthy with quarterly app downloads at 9.1 million and MAU(App) came in at 10.5 million.

Incorporated in 1995, Jubilant FoodWorks Limited is part of the Jubilant Bhartia Group. The Company holds the exclusive master franchise rights from Domino’s Pizza Inc. to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. In India, it has a strong and extensive network of 1,928 Domino’s stores across 407 cities. The Company also has exclusive rights to develop and operate Popeyes restaurants in India, Bangladesh, Nepal and Bhutan and Dunkin’ restaurants in India. The Company currently operates 32 Popeyes restaurants in 10 cities and 25 Dunkin’ restaurants across eight cities. ‘Hong’s Kitchen’ is the first owned-restaurant brand of the Company operating in the Chinese cuisine segment which now has 22 restaurants across four cities.

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