Jubilant FoodWorks Q3 net down 40% to Rs 80 cr; revenue up to Rs 1,332 cr

Jubilant Foodworks Ltd (JFL), which operates fast-food chains Domino's Pizza and Dunkin' Donuts, on Wednesday reported a decline of 39.66 per cent in its consolidated net profit at Rs 80.36 crore for the third quarter ended December 31, 2022.

The company had posted a consolidated net profit of Rs 133.19 crore in the October-December quarter of the previous fiscal, Jubilant Foodworks Ltd (JFL) said in a regulatory filing.

Its revenue from operations during the quarter was up 10 per cent to Rs 1,331.81 crore as against Rs 1,210.77 crore in the year-ago period.

According to JFL, "high inflation continues to keep margin under pressure".

"The increase in revenue was primarily driven by growth in orders for Domino's. The Domino's Like-for-Like growth came in at 0.3 per cent. The Delivery channel registered 9.9 per cent growth led by orders partially offset by a decline in the ticket. The Dine-in and Takeaway channels combined registered 9.8 per cent growth driven by an increase in ticket and orders," said JFL's earning statement.

JFL's total expenses were at Rs 1,229.79 crore, up 18.22 per cent in Q3 FY23.

During the quarter, JFL opened 60 new restaurants for Domino's Pizza, adding 16 cities to its network.

It was operating a total of 1,760 restaurants as of December 31, 2022 across 387 cities.

The company is also sunsetting two of its QSR businesses -- ChefBoss and Ekdum!

During the quarter, in Sri Lanka, JFL registered system sales growth of 24.9 per cent and opened 7 new stores, taking the network strength to 47 stores, while in Bangladesh, system sales grew by 44.7 per cent, taking the store count to 13.

JFL is the exclusive master franchise to develop and operate the Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal.

It also has the franchise rights of American multinational chain of fried chicken fast food restaurants 'Popeyes' for the Indian market. It opened 4 new stores, taking the network tally to 12 stores in Bengaluru.

JFL Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said: "In a challenging environment marked by historic high inflation and consequential impact on demand, our performance was impacted. The strength of our brands, continued focus on delivering high value, and an array of planned, strategic interventions will help us navigate the current situation and reorient the business to robust, profitable growth."

Shares of Jubilant FoodWorks Ltd on Wednesday settled at Rs 456.60 on BSE, down 6.26 per cent from the previous close.