Jubilant Foodworks Reports 26% Decline in Q2 FY24 Net Profit at Rs 97.20 Crore

Jubilant Foodworks Limited, the popular fast-food brands Domino's Pizza and Dunkin' Donuts, reported a 26% decrease in its combined net earnings for the second quarter (Q2) ending in September 2023.

This decline in profit amounted to Rs 97.20 crore, in contrast to the Rs 131.53 crore in net profit during the corresponding period of the previous financial year. This information comes from an official regulatory filing.

The company saw an increase in its overall revenue, reaching Rs 1,375.69 crore during Q2 FY24, compared to the Rs 1,311.92 crore recorded in Q2 FY23.

Shyam S. Bhartia, Chairman, and Hari S. Bhartia, the Co-Chairman of Jubilant FoodWorks Limited, stated, "Our primary focus remains on pursuing growth, fostering innovation, and capitalizing on opportunities to improve profitability. Our investments in technology and delivery methods are yielding positive results, as we achieved favorable like-for-like growth in this area. Additionally, our mobile app experienced higher-than-anticipated traffic. We intend to continue investing in expanding our network of stores, enhancing technology, and strengthening our team to maintain our competitive edge and ensure our sustained long-term success."

According to the BSE filing, the company's total costs during the September quarter grew to Rs 1,290.16 crore in Q2 FY24, in contrast to the total expenses of Rs 1,153.92 crore incurred during the corresponding period in the previous fiscal year.

Sameer Khetarpal, CEO and Managing Director of Jubilant FoodWorks Limited, remarked, "Our growth is primarily being driven by an increase in customer orders, with a notable increase in consumer interaction. Furthermore, the decline in average transaction size has been halted. Additionally, we've observed two consecutive quarters of gradual improvement in the average daily sales of established stores, and our gross margins show promising early signs of long-term business health enhancement. Each action we're taking not only helps us address short-term challenges but also establishes a strong foundation for the future growth of our business."

In the quarter, the company expanded its presence by inaugurating 60 new stores in India, bringing the total number of stores across all brands to 1,949.

By opening 50 new stores and making an entrance into three previously uncharted cities, Domino's India increased its network to encompass 1,888 stores, now spanning across 397 cities.

The company extended its reach by launching five new restaurants under the Popeyes brand and ventured into two previously untapped cities, Hyderabad and Madurai. This expansion brought the total number of Popeyes restaurants to 22, spread across six cities.

Hong's Kitchen also saw growth, with four new stores added to its network, resulting in a total of 18 stores across three cities.

For Dunkin', one new store was established in a new city, and 11 out of the 21 stores now align with the brand's coffee-focused identity.