Jubilant Foodworks Shares Quarterly Numbers

It was a robust quarter of top line performance for Jubilant Foodworks. For the Dec-21 quarter, it reported 13.23% YoY growth in sales revenues at Rs.1,210.77 crore on a consolidated YoY basis. It is interesting that in the quarter, Jubilant Foodworks opened 75 new Domino’s stores as activity level was back to pre-COVID levels. This has taken the total Domino’s stores across India to a level of 1,500. Sequential revenues were up by 8.47%. 

While LFL (like for like) growth was at 7.5%, system growth stood at 12.93% yoy. What helped the growth in revenues was the strong growth in dine-in and delivery channels. Just to put down numerical evidence, Delivery and takeaway channels grew by 128% and 148% while the dine-in business grew 71.7% yoy. It also launched first Popeye brand restaurant in Bengaluru while Domino’s had 8.2 million app downloads in Q3. 

Let us turn to operating performance of Jubilant Foodworks for the quarter. For Dec-21 quarter, operating profits were up 13.52% at Rs.215.99 crore on a consolidated YoY basis. There was solid traction visible in EBITDA growth by 13.9% at Rs.317.40 crore while the EBITDA margins improved by 24 bps to a very healthy level of 26.6% in the quarter. 

Operating margins in the quarter improved marginally from 17.79% in Dec-20 quarter to 17.84% in the Dec-21 quarter as costs put some pressure in an inflationary environment. Operating margins were higher on a sequential basis by about 38 bps. The board of directors of Jubilant Foodworks approved splitting the face value of the share from Rs.10 to Rs.2, representing a 5:1 impact on shares and share prices.

Consolidated Profit after tax (PAT) for Dec-21 quarter was up 7.85% YoY at Rs.133.88 crore as the robust operating performance got transmitted to the bottom line. The profit growth would have bene higher had it not been for the deferred tax credit in the Dec-20 quarter. PAT margins fell marginally from 11.61% in the Dec-20 quarter to 11.06% in the Dec-21 quarter. However, PAT margins were higher by 29 bps on a sequential basis.

To sum it up, it has been a strong quarter performance put up by Jubilant Foodworks, despite a spike in some of the key cost heads. The combination of aggressive sales push and improvement in operating efficiency parameters helped them post better numbers.