On January 31, 2024, Jubilant FoodWorks Limited (BSE, NSE: JUBLFOOD) announced its Q3 2023-24 results, reporting an uptick in Revenue at 2.9% up, and the Indian network crossing the 2,000 milestone mark.
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Jubilant FoodWorks Main Q3 Result Takeaways
India’s largest and leading food service company announced its quarterly results for Q3 FY24 with a bang as it crossed milestones and made headway with its expansion plans. Here are the key highlights of the results:
- The Company’s Revenue was up by 2.9% and the Gross Margin was at 76.7% with an EBITDA margin of 20.9%.
- The Company’s Indian Network in India crossed the 2,000 milestone with 58 new stores commencing operations, and the total store count reaching 2,007 across all Company brands in Q3 FY24.
- The Company witnessed significant traction with its 40 new Domino’s stores opening with an entry in 10 new cities. The Domino’s network has now expanded to 1,928 stores spanning 407 cities.
- The Company has stepped up the momentum of expansion of Popeyes restaurants and entered North India with 32 stores now serving foodies in 10 cities.
- The Domino’s Cheesy Rewards membership base reached 21.5 million with a 53% Order Contribution in December in Q3 FY24.
- With an in-house development of a custom-built App, Domino’s has now gone live on OND.
Additional Read: Q3 Results Dashboard
Domino’s Drives Success
Regarding the business of the Company and its financial success in Q3 FY24, Domino’s played a large part in winning figures for the Company, along with other achievements:
- The Revenue from Operations of ₹13,551 million increased 2.9% against the previous fiscal year. The growth was mainly driven by Domino’s Delivery channel sales which rose by 6.2%. The Average Daily Sales of Domino’s mature stores stood at ₹80,111. While the Delivery LFL was positive, LFL came in at -2.9% affected by Dine-in.
- In Q3 FY24, the deployment of various levers via Project Vijay and stringent cost control continued to help profitability. The Gross Profit was ₹10,387 million, up by 4.5%. The Gross margin was at 76.7%. The EBITDA was ₹ 2,827 million and the EBITDA margin stood at 20.9%. The Profit After Tax was at ₹610 million and the PAT margin stood at 4.5%.
Q3 Food For Thought – Adding Stores and Adding Revenue
Jubilant FoodWorks continues its expansion endeavour with the addition of new stores in Q3:
- With the addition of 40 new stores and entrance into 10 new cities, Domino’s India extended its robust network to 1,928 stores over 407 cities.
- The Company ramped up network expansion in Popeyes with the opening of 10 new restaurants and entrance into four new cities – Mysore, Mangalore, Cuddalore, and Mohali – the network tally now stands at 32 restaurants across 10 cities.
- In Q3 FY24, Hong’s Kitchen opened four new stores and made an entry in one new city enhancing the network to 22 stores across four cities.
- As for Dunkin’ Donuts, four new stores were opened with an entry into Lucknow.
The Management’s Take on Q3 Results
The top management of Jubilant Food Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company’s Q3 FY24 was marked by sustained delivery growth and the highest ticket in nine quarters without an increase in price since the last six quarters.
- The Company’s adept cost optimisation paved the way for investments in category development, and the rapid expansion of Popeyes as an additional growth driver were the major highlights of Q3 FY24 Company performance.
- The commissioning of Jubilant Food Park in Bangalore crucially elevates the Company’s operational capabilities, and in-house integration with ONDC portrays digital proficiency.
- The acquisition of a majority stake in DP Eurasia will boost renewed, profitable growth.
- The accretive DP Eurasia acquisition highlights a new chapter of utilising the Company’s Domino’s experience to support their business, and in the process, create additional value for our shareholders.
Additional Read: Jubilant FoodWorks Share Price
Q3 FY24 Result Summary
Jubilant FoodWorks Limited is India’s largest food service company and is a major part of the Jubilant Bhartia Group. It was formed in 1995, and now, the Company holds the exclusive main franchise rights from Domino’s Pizza Inc., to develop and operate the brand of Domino’s in India, Bangladesh, Sri Lanka, and Nepal. In India, its Domino’s network is 1,928 stores strong and its reach extends to 407 cities. The Company also enjoys exclusive rights to develop and operate Popeyes restaurants in India, Nepal, Bangladesh, and Bhutan, and Dunkin’ restaurants in India. The Company also proudly operates its own brand, Hong’s Kitchen which specialises in Chinese cuisine. The Company has recently made the acquisition of DP Eurasia(DPEU). This is a step-down subsidiary of Jubilant FoodWorks and is the exclusive primary franchisee of the Domino’s Pizza brand in Azerbaijan, Turkey, and Georgia with 694 stores out of which 88% are franchised stores.
Although Q3 FY24 shows a decline in the Company’s Net Profit compared to the same period a year ago, the Company is optimistic about its present expansion plans in order and the accelerated commencement of new stores, especially Popeyes restaurants, driving future growth. Additionally, the majority stake that the Company holds in DP Eurasia is a potential growth driver for the quarters to come.
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Source: Jubilant Foodworks Limited Press Release
