The QSR chain operator's standalone net profit declined 1.94% to Rs 119.17 crore despite of 16.9% jump in revenue from operations to Rs 1,286.77 crore in Q2 FY23 over Q2 FY22.
The company said that the increase in revenue was driven by Like-for-Like growth of 8.4% and healthy performance of new stores. Dine-in and Takeaway channels combined witnessed strong year on year growth while Delivery channel registered growth on a high base.
Profit before tax was marginally lower to Rs 161.93 crore in quarter ended 30 September 2022 from Rs 162.23 crore recorded in Q2 FY22.
EBITDA rose 9.2% to Rs 312.5 crore in Q2 FY23 as against Rs 286 crore recorded in Q2 FY22. Despite of significant cost headwinds, the EBITDA margin stood at 24.3% in Q2 FY23 as against 26% posted in the same period a year ago. Meanwhile, PAT margin was at 9.3% decreased by 178 bps in Q2 FY23.
Domino's Like-for-Like (LFL) sales growth stood at 8.4% in Q2 FY23 as against 28.3% in Q1 FY23 and 29.4% in Q2 FY22. LFL sales growth refers to the year over year growth in sales for non-split restaurants opened before previous financial year.
The company continued with its strong store opening momentum and opened 76 new Domino's stores taking the network strength for Domino's in India to 1,701 stores. The company entered 22 new cities during the quarter to expand its reach to 371 cities across India. It also opened two new stores for Popeyes and one store for Dunkin'.
The focus on Digital continued during the quarter. Quarterly app downloads were at record 9 million.
During the quarter, in Sri Lanka, Jubilant FoodWorks registered system sales growth of 37% and opened 4 new stores taking the network strength to 40 stores. In Bangladesh, system sales grew by 42%. With the opening of 1 new outlet, the store count in Bangladesh has reached 11 stores.
Commenting on the Q2 FY23 performance, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman of Jubilant FoodWorks said, Loyalty, regional menu innovation, sharp digital focus and continued strength of onground operational execution defined our record Q2 performance, despite the challenges of high inflation. We have made significant progress against our strategic priorities and remain confident in continuing a sustainable, profitable growth trajectory.
Sameer Khetarpal, CEO and MD of Jubilant FoodWorks said, We delivered strong top-line growth supported by robust Like-for-Like growth in Domino's led by our digital and physical footprint. Despite inflation, our performance on margins has been consistent and strong, driven by disciplined cost control and calibrated pricing actions in the past. Across brands, we continue to innovate on direct to consumer offerings - offering great value, new range of pizzas, convenience of ordering through our app and faster speed of delivery.
Separately, the company's board on 8 November 2022, approved an internal restructuring of its overseas subsidiaries where certain overseas subsidiaries of the company will be held under Jubilant FoodWorks International Luxembourg, a step down wholly owned subsidiary of the company. The proposed restructuring will result in simplification of structure of the Company without any change in ultimate ownership of the company over the said subsidiaries.
The company will sell its shares in Jubilant FoodWorks Lanka and Jubilant FoodWorks Bangladesh, to the Jubilant FoodWorks International Luxembourg.
It will also sell shares of DP Eurasia N.V., a company incorporated in the Netherlands, to the Luxembourg subsidiary.
Further, the company will terminate the existing corporate guarantee dated 27 October 2021 issued by the company in favour of Hongkong and Shanghai Banking Corporation (HSBC) ("Guarantee") and issuance of a new corporate guarantee in favour of HSBC on behalf of the Luxembourg subsidiary guaranteeing the repayment obligations for the term loan assigned / novated to the Luxembourg subsidiary (term loan earlier availed by Netherlands subsidiary).
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 1,701 Domino's restaurants across 371 cities.
Shares of Jubilant FoodWorks rose 1.06% to close at Rs 612.70 on Monday, 7 November 2022.
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