Jubilant Foodworks Q4 net profit falls 59% on hike in raw material costs

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Leading quick service restaurant player Jubilant Foodworks on May 17 reported a significant 59.5 percent decline in its consolidated net profit at Rs 47.5 crore from Rs 116.1 crore in year-ago period.

The company's revenue from operations grew 8.2 percent on-year to Rs 1,252.3 crore, while EBITDA, which measures its operating profitability, declined 12.9 percent to Rs 252.2 crore.

The foodservice player's margin also experienced a decline. The margin stood at 20.1 percent, down from 25 percent in the previous year due to high input prices of cheese, flour, fats and oil.

The company also took impairment charge of Rs 20 crore due to challenging economic environment in Sri Lanka with sustained inflation, depreciation of currency and depletion of forex reserves.

"We are pleased that we have become a Rs 5,000-crore-turnover company in this fiscal year. There are near-term concerns around historically high inflation and slowing market growth, but we are confident on our unique ecosystem’s ability to tap on the potential that lies ahead of us," Chairman Shyam S Bhartia and Co-chairman Hari S Bhartia said.

Domino's like-for-like growth (non-split stores) came in at -0.6 percent in Q4 FY23 compared to 5.8 percent in Q4 FY22.

It opened 61 new stores in India, expanding its network strength to 1,816 stores across 393 cities. The company also opened one restaurant for Popeyes and Hong’s Kitchen, taking their network tally to 13 stores each.

"As we step into the new fiscal year, we derive confidence from the strength of our brands, operational prowess, quality of innovation and commitment of our people to navigate the business well in the current environment,” Sameer Khetarpal, CEO and MD, Jubilant FoodWorks said.

At 2:15pm, the stock was quoting at Rs 475.90 on the NSE, higher by 1.97 percent.