Jubilant FoodWorks slipped 5.67% to Rs 459.50 after the QSR chain operator's standalone net profit tumbled 35.5% to Rs 88.58 crore as against Rs 137.33 crore posted in Q3 FY22.
Revenue from operations stood at Rs 1,316.64 crore in the quarter ended 31 December 2022 from Rs 1,193.50 crore recorded in Q3 FY22, registering a growth of 10.32%.
The company said that the increase in revenue was primarily driven by growth in orders for Domino's.
Domino's Like-for-Like (LFL) sales growth stood at 0.3% in Q3 FY23 as against 7.5% in Q3 FY23 LFL sales growth refers to the year over year growth in sales for non-split restaurants opened before previous financial year.
The Delivery channel registered 9.9% growth led by orders partially offset by decline in ticket. The Dine-in and Takeaway channels combined registered 9.8% growth driven by increase in ticket and orders.
Profit before tax dropped 34.75% to Rs 119.43 crore in Q3 FY23 as compared with Rs 183.03 crore reported in the corresponding quarter previous year.
EBITDA declined 8.6% to Rs 290 crore in Q3 FY23 as against Rs 317.4 crore recorded in Q3 FY22. EBITDA margin reduced to 22% in Q3 FY23 as compared to 26.6% posted in the same period a year ago. Meanwhile, PAT margin decreased to 6.7% down by 478 bps in Q3 FY23. The historic high inflation continues to keep margin under pressure, said the firm.
During the quarter, the company opened 64 new stores in India, resulting in a network of 1,814 stores across all brands. With the addition of 60 new stores and entry in 16 new cities, Domino's India has expanded its network strength to 1,760 stores across 387 cities. The company opened four new stores for Popeyes taking the network tally to 12 stores in Bengaluru. In January, Jubilant FoodWorks also opened its first Popeyes store in Chennai.
In December, the company announced the launch of 20-minute delivery for Domino's in 14 cities across 20 zones. Domino's has pioneered 30-minutes delivery and established itself as a market leader in the QSR sector. The unparalleled 20-minutes delivery announcement that underlines Domino's delivery prowess is a benchmark proposition revolutionizing the QSR sector. The company also expanded the product portfolio for Domino's India with two strategic interventions.
In Sri Lanka, the company delivered a record performance with highest ever sales and new store additions. The system sales growth was 24.9% and the firm opened seven new stores taking the network strength to 47 stores. In Bangladesh, system sales grew by 44.7%. With the opening of two new outlet, the store count in Bangladesh has reached 13 stores.
Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman of Jubilant FoodWorks, said, In a challenging environment marked by historic high inflation and consequential impact on demand, our performance was impacted. The strength of our brands, continued focus on delivering high value, and an array of planned, strategic interventions will help us navigate the current situation and reorient the business to robust, profitable growth.
Sameer Khetarpal, CEO and MD at Jubilant FoodWorks, said, We reported modest top-line growth as LFL growth for Domino's was flat. This, along with historic high inflation, resulted in margin compression. We have sharpened our strategy to get growth back in the business. Our renewed priorities include - Customer first, Data and technology forward, Operational excellence and Foundation of people and culture. We are confident that the interplay of these sets of priorities will not only help us navigate current headwinds but will help us capitalize on the immense potential of the food service industry.
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 1,760 Domino's restaurants across 387 cities.
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