Jubilant FoodWorks Q3 net rises 7.5% to Rs 133 cr; board OKs stock split

The board of directors has approved and recommended for approval of shareholders, the sub-division of equity shares from face value of Rs 10 each to face value of Rs 2 each

Jubilant FoodWorks Ltd (JFL), which operates quick service restaurant (QSR) chains like Domino's Pizza and Dunkin' Donuts, on Wednesday reported a 7.48 per cent increase in its consolidated net profit to Rs 133.19 crore for the third quarter ended December 2021.

The company had posted a net profit of Rs 123.91 crore in the corresponding quarter last year, JFL said in a BSE filing.

Its revenue from operations during October-December 2021 stood at Rs 1,210.77 crore, a jump of 13.23 per cent as compared with Rs 1,069.27 crore in the year-ago period.

"The growth was driven by an improved recovery in the dine-in channel, well supported by a continued strong momentum in delivery channel," said JFL in its post-earnings statement.

JFL's total expenses rose 13.06 per cent to Rs 1,040.23 crore in the December 2021 quarter, compared with Rs 920.02 crore in the year-ago period.

"When compared to the pre-COVID-19 period of Q3FY20, Domino's system sales recovered by 112.9 per cent.

"This was attributed to recovery in delivery and takeaway channels by 128 per cent and 148.2 per cent, respectively. Dine-in channel witnessed a healthy recovery at 71.7 per cent," JFL said.

During the October-December 2021 quarter, JFL opened 75 new restaurants for Domino's Pizza, entering into 17 new cities.

The quarter also saw record new store openings with a landmark 75 new Domino's stores being opened. This is the highest ever number of new store openings by any franchisee in any quarter in any market.

Besides, JFL recently also achieved a milestone of 1,500 Domino's stores in India.

During the quarter, JFL witnessed 8.2 million downloads of Domino's app taking the total number to 79.5 million.

It has also opened one new restaurant each for Dunkin' in the third quarter, taking the total count to 29.

JFL also opened one restaurant each of its new QSR Brands – Hong's Kitchen and Ekdum!, taking the total count to 22 by the end of the quarter.

In January, JFL had also launched the iconic US fried chicken brand Popeyes in India by opening two stores in Bengaluru.

"The early customer response and feedback have been encouraging," said JFL adding that one more Popeyes QSR is scheduled to open shortly.

While sharing the information about its overseas operation, JFL said that in Sri Lanka, it has registered its highest-ever system sales in a quarter with a system sales growth of 95.9 per cent. While, in Bangladesh, system sales grew by 38 per cent.

"The company launched a new outlet each in Sri Lanka and Bangladesh," it said.

JFL Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said in a statement, "We have delivered a strong, all-round Q3FY22 performance, along with a record expansion of the Domino's store network. The company continues to create benchmarks, surpass key milestones and we remain excited with the growth opportunity that lies ahead.” Meanwhile, in a separate filing, JFL said its board in a meeting on Wednesday approved and recommended a sub-division of equity shares from a face value of Rs 10 each to the face value of Rs 2 each.
 

This would "enhance the liquidity of the company's equity shares and encourage the participation of small investors by making it more affordable", said JFL.

Shares of Jubilant FoodWorks Ltd on Wednesday settled at Rs 3,301.25 apiece on the BSE, down 4.04 per cent from the previous close.