Jubilant FoodWorks net profit for Q4 falls by 70% to Rs 28.54 crore

Jubilant FoodWorks Ltd on Wednesday reported a 70 per cent decline in consolidated net profit at Rs 28.54 crore in the March quarter, impacted by higher expenses and raw materials cost.

The company had posted a consolidated net profit of Rs 96 crore in the year-ago period, Jubilant FoodWorks said in a regulatory filing.

Consolidated revenue from operations in the fourth quarter was at Rs 1,269.85 crore as against Rs 1,175.97 crore in the year-ago period, it added.

Total expenses were higher at Rs 1,205.15 crore as compared with Rs 1,038.27 crore in the corresponding period a year ago, the company said.

Cost of raw materials consumed in the quarter was at Rs 290.96 crore, up from Rs 254.96 crore in the same period of FY22.

The company, which holds the exclusive master franchise rights from Domino's Pizza Inc for India, Sri Lanka, Bangladesh and Nepal, besides exclusive rights to develop and operate Dunkin' restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan, said it opened 61 new stores in India in the fourth quarter.

"With the addition of 56 new stores and entry in six new cities, Domino's has expanded its network strength to 1,816 stores across 393 cities," it added.

The company also opened one new restaurant for Popeyes and Hong's Kitchen, taking their network tally to 13 stores each. For Dunkin', it opened three new coffee-first stores, and eight out of 21 Dunkin' stores are now as per the brand's new "Coffee-first" identity, it added.

For the fiscal ended March 31, 2023, consolidated net profit was at Rs 353.03 crore from Rs 418.09 crore in the previous year, down 15.56 per cent.

In FY23, consolidated revenue from operations was at Rs 5,158.25 crore as compared to Rs 4,396.12 crore in FY22.

Jubilant FoodWorks Ltd Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said, in FY23, the company has become a Rs 5,000-crore turnover company on the back of efforts to elevate consumer experience through its portfolio of brands, making deep investments in commissaries and digital assets for continued future growth while maintaining very high financial discipline.

On the outlook, they said, "There are near term concerns around historic high inflation and slowing market growth, but we are confident in our unique ecosystem's ability to tap on the potential that lies ahead of us and reorient the business to deliver sustained profitable growth.