Jubilant FoodWorks Limited, the master franchisee operating Domino's Pizza and other quick-service restaurant chains across India and international markets, has delivered an outstanding financial performance for the September quarter, recording an almost threefold increase in net profit driven by robust operational efficiency and reduced interest expenses.
Record-Breaking Financial Performance
The company witnessed a spectacular 192.5% year-on-year surge in consolidated net profit, reaching ₹194.6 crore for the quarter ending September 2023. This remarkable growth was supported by a 19.7% increase in total revenue, which climbed to ₹2,340.2 crore compared to the same period last year.
Focusing on the domestic market, Jubilant FoodWorks' standalone India revenue demonstrated strong growth at 15.8% year-on-year, amounting to ₹1,698.7 crore. The company's operational efficiency was evident in its consolidated EBITDA, which rose by 18.5% with margins stabilizing at 13.9%. The India business performed even better on this metric, achieving EBITDA growth of 15.9% with healthy margins of 19.4%.
Domino's India Leads Growth Charge
The flagship Domino's India brand emerged as the primary growth driver, reporting a 15.5% increase in revenue during the quarter. This performance was underpinned by an impressive 14.8% growth in order volumes and 9.1% like-for-like sales growth, indicating strong same-store performance across existing locations.
The delivery channel continued to be the dominant growth engine, with revenue from this segment surging by 21.6% year-on-year. However, the company acknowledged that dine-in revenue remained relatively flat, prompting strategic initiatives to revitalize in-store sales.
During the post-earnings conference call, Sameer Khetarpal, Chief Executive and Managing Director of Jubilant FoodWorks, elaborated on their strategy to boost on-premise sales. "Work on dining or in-store is very much underway. For example, the ₹99 value offerings that we launched for dine-in between 11 am and 3 pm are giving us joy. We have expanded that to delivery at about ₹150 during lunch hours. Long story short, there are several initiatives which are in the works to increase on-premise sales," Khetarpal explained.
Aggressive Expansion and Market Presence
Jubilant FoodWorks maintained an aggressive expansion strategy during the quarter, adding 88 new stores to its India network, bringing the total count to 2,450 outlets. The expansion included 81 new Domino's stores that entered 16 new cities, extending the brand's footprint to an impressive 500 cities across India.
The company also strengthened its portfolio diversification by opening four new Popeyes outlets in Mumbai, continuing its strategy of building multiple successful restaurant brands in the Indian market.
Jubilant FoodWorks operates an extensive portfolio of food brands in India, including international giants like Domino's, Popeyes, and Dunkin' Donuts, alongside its homegrown concepts Hong's Kitchen and Ekdum!. The company has also established significant international presence with operations in Sri Lanka, Bangladesh, and Nepal.
At the group level, Jubilant FoodWorks now boasts a total network of 3,480 stores globally, including 3,179 Domino's outlets across India and international markets. The company reported positive year-on-year revenue growth across all its international operations, including markets like Turkey, Sri Lanka, and Bangladesh.
The strong performance of Jubilant FoodWorks stands in contrast to some other players in the quick-service restaurant sector. For instance, Westlife Foodworld, which operates McDonald's restaurants in South and West India, reported a "soft" performance in the September quarter amid weak consumption trends and limited recovery signs.
