Jobaaj Stories
Shares of Jubilant Foodworks, the franchise owner of Domino’s Pizza in India, grew more than 3% today as it continued to grow even though the company reported a 59% decline in profits annually.
For the quarter ended in March 2023, the company reported revenues of Rs 1,269.84 crores, up 8% on an annual basis. Inflation continued to weigh down on the company’s margins as the company reported a Gross Margin of 75.3% during the relevant quarter. EBITDA declined 12.9% to Rs 252.2 crores while the EBITDA margin declined to 20.1%. Profit for the quarter was Rs 28.54 crores, down 70%!!
For the period of 12 months ending in March 2023, the company’s revenues grew 17.7% to Rs 5,158.25 crores. High inflation levels impacted the company’s growth, particularly in H2FY23. Revenue growth has been the lowest in 8 quarters as Domino’s LFL growth was -0.6%, contracting for the first time.
Deliveries continued to account for more than 60% of its mix as the delivery channels revenues improved by 5.7% while the same from Dine-in grew 11.5% YoY. Popeye’s brand is also gaining traction as the brand had 13 stores in India while last year the brand was just starting out.
Across all brands, the company opened 249 new stores while entering 6 new cities. Despite the economic conditions in Sri Lanka, the company added 12 new stores there and 8 new stores in Bangladesh. High inflation resulted in higher expenses such that the cost of raw materials alone surged by 14%. The company also had higher finance costs as overall expenses zoomed 16% to Rs 4,694 crores.
Annually, EBITDA declined 4% to Rs 1,152 crores while the EBITDA margin fell 290 bps to 22.3%. The profit for FY23 came in at Rs 353 crores, down 16% when compared to Rs 418 crores reported in the corresponding period last year.
The Board of the fast foods company has announced a dividend of Rs 1.2 per share, translating to a Rs 79.18 crore dividend payout by the company for FY23. Despite the disappointing results, the shares of JFL saw great interest from the Bulls as it grew 3.09% today to close at Rs 481.10 per share, a price level it couldn’t climb back to since February this year.
—Aman Agarwal
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