Jubilant Food Q3: Net profit up 9.8% to Rs 137.3 cr; board approves stock split

Jubilant Foodworks Ltd (JBL), which operates fast-food chains Domino's Pizza and Dunkin' Donuts, on Wednesday reported a 9.8 per cent year-on-year (YoY) rise in net profit at Rs 137.3 crore.
 
The company's revenue from operations grew 12.9 per cent to Rs 1,193.5 crore on the back of an improved recovery in dine-in channel, which was well supported by a continued strong momentum in delivery channel. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 13.9 per cent to Rs 317.4 crore.
 
EBITDA margin expanded by 24 basis points to 26.6 per cent despite significant headwinds, the company said in a release. 
 
The like-for-like sales growth for Domino's Pizza India was at 7.5 per cent during the quarter under review. JBL opened 75 new Domino's restaurants during the quarter, while it closed 15 restaurants. The total Domino's restaurants in the country stood at 1,495 at the end of December quarter with presence in 322 cities.
 
"The quarter also saw record new store openings with a landmark 75 new Domino's stores being opened. This is the highest ever number of new store openings by any franchisee in any quarter in any market. The company forayed into 17 new cities during the quarter," JBL said.
 
Meanwhile, the company also opened one new restaurant each of Dunkin' and Hong's Kitchen during the quarter. "The company recently opened its first two Popeyes restaurants in Bengaluru, with one more scheduled to open shortly. The early customer response and feedback has been extremely encouraging," JBL said.
 
Chicken is one of the largest and fastest growing categories in India and is expected to grow rapidly in years to come. Popeyes is expected to become one of the key drivers of profitable growth for the company in the coming years, it added.
 
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The company's board also approved splitting of its equity share having face value of Rs 10 each into 5 equity shares having face value of Rs 2 each, subject to the approval of the shareholders.
 
Splitting the shares in 1:5 equity ratio will enhance the liquidity of company's shares and encourage the participation of small investors by making it more affordable. JBL expects the stock split to be completed within 3 months of receiving the approval from the shareholders of the company.
 
Commenting on the results, chairman Shyam S Bhartia and co-chairman Hari S. Bhartia said, "We have delivered a strong, all-round Q3FY22 performance, along with a record expansion of the Domino's store network...We are also making disciplined strategic investments that will help us drive growth, strengthen capabilities and continue creating value for all our stakeholders."
 
JBL CEO Pratik Pota said that the company delivered healthy revenue growth and strong profitability in the face of COVID induced restrictions and significant inflationary headwinds, while accelerating network expansion.
 
"We made some important strategic investments during the quarter. The recent launch of Popeyes and our surpassing of 1500th Domino's stores milestone in India underscores our confidence as we stay focused on driving sustainable, profitable growth in the business," he added.
 
On a consolidated basis, JBL's net profit rose 7.5 per cent to Rs 133.2 crore. Shares of the company closed 4.08 per cent lower at Rs 3,300 on the BSE on Wednesday.

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