Jubilant Foodworks Q2 results: Net profit rises 58% to Rs 121.5 cr, revenue up 37%

Jubilant Foodworks Ltd (JBL), which operates fast-food chains Domino's Pizza and Dunkin' Donuts, on Wednesday reported a 58 per cent year-on-year (YoY) rise in net profit at Rs 121.5 crore.   The company's revenue from operations grew 36.6 per cent to Rs 1,100.7 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33.2 per cent YoY to Rs 286 crore.   However, EBITDA margin contracted by 70 basis points to 26 per cent due to a 37.9 per cent rise in total expenditure to Rs 814.7 crore on the back of a 40.1 per cent rise in raw material and beverage costs and 51.5 per cent increase in manufacturing and other expenses.   The same store growth for Domino's Pizza India stood at 26.3 per cent during the quarter under review, while the like-for-like growth was at 29.4 per cent. JBL opened 55 new Domino's Pizza stores and entered nine new cities during the quarter, taking the total number of stores to 1,435 at the end of September quarter.   Meanwhile, it also opened two new Dunkin' Donuts stores and closed 1 store, taking the total number of stores to 28. JBL also opened 2 new stores of Hong's Kitchen and 1 store of Ekdum!.

Also Read: Start-ups' salary spending rises 43% between April & Sept: Report   "Sri Lanka and Bangladesh registered a system sales growth of 88.4 per cent and 33.2 per cent vs last year respectively. Notably, in Sri Lanka, the company achieved record sales in the quarter and also opened three new Domino's stores, taking the store count to 31," the company said in a release.   On a consolidated basis, its net profit rose 58.1 per cent to Rs 119.8 crore, while revenue rose 36.7 per cent to Rs 1,116.2 crore.   During the quarter, the company launched a reverse bookbuild process to enhance its indirect shareholding in DP Eurasia NV, the fifth largest master franchisee of Domino's Pizza. It also initiated the process of enhancing its shareholding in Jubilant Golden Harvest Limited, Bangladesh, to 90 per cent to strengthen its presence in the fast-growing and critical market of Bangladesh.   "Q2 FY22 saw a strong all-round performance with revenue, profitability and store growth numbers hitting record highs. The new investments announced during the quarter will help steer the company towards its goal of becoming a multibrand, multi-country business driven by technology and will create significant value for all stakeholders," JBL Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said.   JBL CEO Pratik Pota said despite the operating challenges and inflationary headwinds, the company delivered a robust topline growth, strong EBITDA margins and record new store openings. "We are excited about the future and believe that we have the right strategy to lead growth in the exciting period that lies ahead," he said.

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