Jubilant FoodWorks Q3 net profit falls 18.2% to Rs 65.8 crore, misses estimates

Jubilant Foodworks announces their Q3FY24 results.

Jubilant FoodWorks, the master franchise of Domino's Pizza, on January 31 reported a standalone net profit of Rs 65.8 crore for the December quarter, a decline of 18.2 percent from Rs 80.4crore in the year-ago period.

Revenue came in at Rs 1,307 crore, rising 3.5 percent from last quarter, the company said in a regulatory filing on January 31. Domino's like-for like (LFL) sales fell 2.9 percent in this quarter.

The company misses estimates. According to a poll by CNBC Jubilant’s revenue was expected at Rs 1,418 crore and profit at Rs 74 crore.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 280 crore falling by 2.2 percent. EBIDTA margin was at 20.3 percent and grew by 120 basis points YoY. One basis point is one-hundredth of a percentage point.

“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.” said Shyam S. Bhartia, Chairman and Mr. Hari S. Bhartia, Co-Chairman.

Domino's India expanded its network by adding 40 new stores and entering 10 new cities, bringing the total number of stores to 1,928 across 407 cities. The company accelerated the expansion of the Popeyes network by opening 10 new restaurants and entering four new cities—Mysore, Mangalore, Cuddalore, and Mohali—resulting in a network of 32 restaurants across 10 cities.

Hong's Kitchen added four new stores and entered a new city, reaching a total of 22 stores across four cities. In the case of Dunkin', four new stores were opened, including entry into Lucknow, bringing the total to 25 stores across eight cities.

The enrollment in the loyalty program, Domino’s Cheesy Rewards, reached 21.5 million, and loyalty order contribution exceeded 53% in December. Consumer engagement remained robust, with quarterly app downloads reaching 9.1 million, and Monthly Active Users (App) at 10.5 million.

"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 Jubilant FoodWorks Limited 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.” said Sameer Khetarpal, CEO and MD.

On January 31, shares of Jubilant closed at 1.79 percent higher at 519.45 on BSE.