Jubilant Foodworks Q2 PAT rises 58% YoY to Rs 121 cr

On a standalone basis, Jubilant Foodworks posted a 58% rise in net profit to Rs 121.5 crore on a 36.6% rise in revenue from operations to Rs 1100.7 crore in Q2 FY22 over Q2 FY21.

The pizza maker's profit before tax grew by 59.6% to Rs 162.22 crore in Q2 FY22 from Rs 101.62 crore posted in Q2 FY21. EBITDA jumped by 33.2% to Rs 286 crore in Q2 FY22 from Rs 214.7 crore posted in the same period last year. EBITDA margin fell to 26% in Q2 FY22 from 26.7% posted in Q2 FY21.

Domino's Like-for-Like (LFL) sales growth stood at 29.4% in Q2 FY22 as compared to a negative 18.8% in Q2 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.

Same store growth (SSG) came at 26.3% in Q2 FY22 as against a negative 20% in the same period last year. SSG refers to the year-over-year growth in sales for restaurants opened before previous financial year.

The company saw a record number of new stores, with 60 new stores opened during the quarter - 55 stores of Domino's, 2 stores each for Dunkin' and Hong's Kitchen and 1 Ekdum! Store. As on 30 September 2021, there were 1,435 Domino's Pizza stores, 28 Dunkin Donuts stores and 21 Hong's Kitchen and Ekdum! stores.

As compared to the pre-Covid period of Q2 FY20, Domino's system sales grew by 11.6%. The company said it was driven by continued strong momentum in delivery and takeaway channels as they grew by 36.8% and 72.2% versus Q2FY20 respectively.

The company posted an exceptional item of Rs 125.17 crore in Q2 FY22. The company said that it incurred extra cost to support its employees, associates and their dependents during COVID-19 pandemic. These includes assistance to families of deceased employees and associates, vaccination of employees, associates and their dependents, quarantine facilities for COVID-19 impacted employees and associates, etc.

Sri Lanka and Bangladesh registered a system sales growth of 88.4% and 33.2% vs. last year respectively. Notably, in Sri Lanka, the company said it achieved record sales in the quarter and also opened 3 new Domino's stores taking the store count to 31.

The company also announced key strategic investments in line with its stated goal of building a multi-brand and multicountry food business powered by technology. A reverse bookbuild process was launched to enhance the company's indirect shareholding in DP Eurasia N.V., the fifth largest master franchisee of Domino's Pizza. Additionally, JFL also initiated the process of enhancing its shareholding in Jubilant Golden Harvest Limited, Bangladesh to 90%, to strengthen its presence in the fast-growing and critical market of Bangladesh.

Commenting on the performance for Q2 FY22, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant Foodworks said, Q2 FY22 saw a strong all-round performance with revenue, profitability and store growth numbers hitting record highs. The new investments announced during the quarter will help steer the company towards its goal of becoming a multibrand, multi-country business driven by technology and will create significant value for all stakeholders.

Commenting on the performance, Pratik Pota, CEO and wholetime director of Jubilant Foodworks said, We are pleased with our strong performance in Q2 FY22. Notwithstanding the operating challenges and inflationary headwinds, we delivered a robust topline growth, strong EBITDA margins and record new store openings. We are excited about the future and believe that we have the right strategy to lead growth in the exciting period that lies ahead.

Jubilant Foodworks is part of Jubilant Bhartia group and is India's largest foodservice company. The company has the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. JFL also enjoys exclusive rights to develop and operate Dunkin' Donuts restaurants in India.

Shares of Jubilant Foodworks were trading 6.22% lower at Rs 4,064.90 on BSE.

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