Last Updated on October 26, 2023 by BFSLTeam BFSLTeam
On October 25, 2023: Jubilant Foodworks BSE, NSE: JUBLFOOD) announced its Q2 2023-24 financial results, with the prospects of sustained positivity and in-roads of restaurants into new cities. Jubilant Foodworks Q2 results reflect growth with a rise in Revenues that look promising for the months ahead.
Table of Content
Key Highlights
Here are the main highlights of Jubilant Foodworks’ Q2 results for FY 23-24:
- The Q2 Revenue of the company is up by 4.5%, with Gross Margin at 76.4%, and EBITDA Margin standing at 20.9%.
- In Q2, India saw the opening of 60 new stores, with the total store count at a whopping 1,949 spread over every brand under the Jubilant banner.
- Especially with respect to Domino’s brand, 50 new outlets commenced operations and saw penetration into 3 new metros. In the present scheme of things, Domino’s spans 1,888 outlets spread over 397 cities.
- The Domino’s brand appears to have contributed to the success of the company in Q2 with Domino’s Cheesy Rewards Membership reaching 19.5 million, the Order Contribution being 50.1% in September 2023 alone.
- Additionally, Domino’s App downloads in Q2 stood at 10.6 million – a record high of all time. MAU comes in at 10.8 million.
Additional Read: Q2 Results Dashboard
Jubilant About Q2
Q2 has been great for the company known to be one of the more superior food service companies in India. Here are some important takeaways about the results:
- The Revenue from Operations was at ₹1344.8 crore. This marks an increase of 4.5% compared with the same Q2 for the previous fiscal year.
- The growth in Q2 has largely been driven by the Domino’s brand with regard to its Delivery Channel Sales. This has increased by 7.9%.
- The company views the reason for Q2’s success as being due to Project Vijay, which has deployed many levers and made cost control measures stringent, thereby combating inflation.
- Q2’s Gross profit was at ₹1027.5 crore, with PAT (Profit After Tax) at ₹72.1 crore.
- 5 new Popeye’s restaurants were opened, and 4 new restaurants for Hong’s Kitchen (the company’s own brand) commenced in Q2.
Other Countries, Superior Results
In Sri Lanka, systems sales saw an increase of 2.0%, and in Bangladesh, this was 85.6%. In Sri Lanka, Domino’s became the fastest QSR and scaled to 50 stores.
Management Commentary
The Chairman and Co-Chairman of Jubilant Foodworks, Shyam S. Bhartia, and Hari S. Bhartia had their take on the results and highlighted the following:
- The company is focused on the pursuit of growth, boosting innovation, and taking advantage of opportunities to enhance margins.
- The company’s investment in delivery channels and technology appears to be paying off in light of the Q2 result.
- Traffic on the app had grown prior to strategic planning.
- Investment continues with regard to the expansion of stores, the workforce, and technology to remain ahead in competitive markets and sustain long-term success.
Additionally, the CEO and MD of Jubilant Foodworks reflected on the results, bringing up the following:
- The order-led growth of the company is due to an increase in consumer engagement and an arrest of ticket decline.
- This is the second consecutive quarter of improvement in a sequential manner in ADS of existing stores.
- Sound Gross margins are indicative of the structural health of the company.
- The company has taken certain actions that have gone a long way in managing short-term challenges. However, these are also responsible for ensuring solid foundations for long-term business growth.
Also Read: Jubilant Foodworks Share Price
Financial Results
Here are the standalone financial results at a glance, showing QoQ and YoY information in ₹ crore, unless indicated by %:
| Metrics | Q2 FY2023-24 | Q2 FY2022-23 | %bps change | Q1 FY2023-24 | %bps change |
| Revenue from Operations | 1,344.8 | 1,286.8 | 4.5% | 1,309.7 | 2.7% |
| Gross Profit | 1027.5 | 981.1 | 4.7% | 995.6 | 3.2% |
| Gross Margin % | 76.4% | 76.2% | 15 bps | 76.0% | 38 bps |
| EBITDA | 280.7 | 312.5 | (10.2) % | 276.4 | 1.6% |
| EBITDA Margin % | 20.9% | 24.3% | (341) bps | 21.1% | (23) bps |
| PAT | 72.1 | 119.2 | (39.5) % | 75.2 | (4.0) % |
| PAT Margin % | 5.4% | 9.3% | (390) bps | 5.7% | (38) bps |
About Jubilant Foodworks
Known to be the largest food service organisation in India, Jubilant FoodWorks is a component of the Jubilant Bhartia Group of enterprises. Established in the year 1995, the firm has the exclusive rights of franchise from the pizza icon Domino’s Pizza Inc. for operations of the Domino’s Pizza brand within India, Nepal, Sri Lanka, and Bangladesh. In India, the company boasts a healthy and extensive network of more than 1,500 Domino’s restaurants spread over 394 Indian metros. In Sri Lanka as well as in Bangladesh, the company runs via wholly-owned subsidiaries presently 20 and 50 restaurants, respectively. This company also holds the sole rights to grow and manage operations of Dunkin’ Donuts restaurants within India and Popeyes restaurants within India, Nepal, Bangladesh, and Bhutan. Presently, the company operates 21 Dunkin’ Donuts restaurants in 6 Indian metros and 17 Popeyes restaurants in 4 cities. Jubilant FoodWorks introduced its first self-owned culinary brand in 2019, “Hong’s Kitchen”, in the segment of Chinese restaurant cuisine. This brand boasts 15 restaurants spread over 3 Indian cities.
Source:
https://www.jubilantfoodworks.com/financial-information/press-release
