Jubilant Foodworks spurts after Q4 PAT rises 8% YoY; Sameer Khetrapal to join as CEO & MD

Jubilant Foodworks advanced 8.74% to Rs 562.15 after the QSR chain operator reported an 11.3% growth in net profit to Rs 116.1 crore as revenue from operations rose by 12.9% to Rs 1,157.9 crore in Q4 FY22 over Q4 FY21.

The company said that the increase in revenue in Domino's was driven by robust growth in delivery channel. Meanwhile, dine-in and takeaway channel also registered a moderate growth.

EBITDA in Q4 FY22 was Rs 289.7 crore, up 16.2% from Rs 249.2 crore posted in Q4 FY21. EBITDA margin rose by 73 basis points to 25% in Q4 FY22 as against 24.3% in Q4 FY21, despite of significant cost headwinds, the company said.

Domino's Like-for-Like (LFL) sales growth stood at 5.8% in Q4 FY22 as against 13.7% in Q4 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.

The company said it created a new all-time record with the opening of 80 new Domino's stores taking the network strength for Domino's in India to 1,567 stores. The company entered 17 new cities during the quarter to expand its reach to 337 cities across India. The company also opened 4 new restaurants for Popeyes and 1 new restaurant each for Dunkin', Hong's Kitchen and Ekdum! during the quarter ended 31 March 2022.

During the quarter, the company registered system sales growth of 80.6% and opened 3 new stores taking the network strength to 35 stores in Sri Lanka. In Bangladesh, system sales grew by 44.5%.

On full year basis, the company reported 87.2% jump in net profit to Rs 437.5 crore on a 32.5% rise in net sales to Rs 4,331.1 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.

Commenting on the Q4FY22 performance, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman of Jubilant Foodworks said, This has been a momentous year for the company on two accounts. A series of timely, strategic investments in strengthening digital ecosystem for delivery and setting up an integrated supply chain network has helped company register record revenue, profitability and store growth numbers even in the face of adversity and inflationary challenges. This in turn has enabled us to foray in new categories and make strategic investments which will continue to create significant future value for all stakeholders.

Pratik Pota, CEO and wholetime director said, Today, our results reinforce our conviction that a vast array of actions we have undertaken over past quarters has helped us strike a remarkable balance of strong top-line growth, bottom-line growth, cash generation, and record network expansion. JFL is a profoundly different, much stronger and more profitable company poised to lead while transitioning to become a multi-brand, multi-country foodtech powerhouse.

Meanwhile, the board appointed Sameer Khetarpal as chief executive officer, managing director and key managerial person of the company with effect from 5 September 2022 for a period of five years. He has served in numerous senior leadership roles during his 25 year career in sectors like e-commerce and management consulting, and joins Jubilant from Amazon.

Furthermore, the board of directors has recommended a dividend of Rs 1.20 per equity share for the financial year ended 31 March 2022.

Meanwhile, Jubilant Foodworks Netherlands B.V. ('JFN'), wholly owned subsidiary of the company, has increased its stake in DP Eurasia N.V. ('DPEU') through various on-market purchases. As on 29 May 2022, JFN is holding 62,067,676 ordinary shares in DPEU representing 42.70% of its issued share capital. DPEU is the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia.

Jubilant Foodworks (JFL) is India's largest foodservice company and is part of the Jubilant Bhartia group. Incorporated in 1995, JFL 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. In India, JFL has a strong and extensive network of 1,567 Domino's restaurants across 337 cities.

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