Jubilant FoodWorks Announces Q1 Result; Revenue up by 5.6%; EBITDA margin at 21.1%

Jubilant FoodWorks Limited, India’s largest foodservice company, today announced its financial results for the quarter ended June 30, 2023.

Revenue from Operations of Rs. 13,097 million increased 5.6% versus the prior year. The growth was driven by Domino’s Delivery channel sales which increased by 8.4%. The ADS of mature stores, came in at Rs. 81,049, up by 2.7% sequentially. The Domino’s LFL came in at -1.3%. 

In a challenging inflationary environment with key input costs holding firm, the company was able to expand its operating margins sequentially on account of higher productivity led-cost optimization initiatives. EBITDA came in at Rs. 2,764 million and EBITDA margin was 21.1%, higher by 97 bps sequentially. Profit After Tax came in at Rs. 752 million and PAT margin was 5.7%, higher by 195 bps sequentially. 

Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited commented, “Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology.”

The Company opened 30 new stores in India, resulting in a network of 1,891 stores across all brands. With the addition of 23 new stores and entry in one new city.

Domino’s India expanded its network strength to 1,838 stores across 394 cities. 

The Company opened four new restaurant for Popeyes and entered two new cities – Manipal and Coimbatore - taking the network tally to 17 restaurants across four cities.

In Hong’s Kitchen, two new stores enhanced the network to 15 stores across three cities. In Dunkin’, one new coffee-first store was opened. 9 out of 21 Dunkin’ stores are now as per the brand’s new Coffee-first identity.  

The enrolment to loyalty program – Domino’s Cheesy Rewards – grew by 23.5% versus the prior quarter to 16.8 million and the loyalty order contribution reached 48% in June 2023. Consumer engagement remain elevated with all time-high quarterly app downloads at 10.0 million, up by 22.0% and MAU(App) came in at 10.3 million.  

In Sri Lanka, the system sales growth was 13.1% and the Company opened two new stores taking the network strength to 50 stores.

“Our strategy of customer first and technology forward has started to yield positive results. ADS for mature stores grew by 2.7% sequentially, decline in ticket size was arrested, app-installs, loyalty enrolments reached a new peak, and we executed efficiently to expand EBITDA margin by 97 bps versus the previous quarter. I remain confident in our strategies and the organization's ability to overcome the slower growth phase and emerge stronger out of it,” added Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited.

Incorporated in 1995, Jubilant holds the exclusive master franchise rights from Domino’s Pizza Inc. to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal, Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan. In 2019, Jubilant FoodWorks launched its first owned-restaurant brand ‘Hong’s Kitchen’ in the Chinese cuisine segment which now has 15 stores across three cities.