Shares of Jubilant FoodWorks Ltd, the operator of Domino’s Pizza in India, rallied nearly 9% on Tuesday after it reported an impressive financial performance for the quarter ended September 2024.
Jubilant’s stock climbed as high as 9% to Rs 655.95 on the BSE but closed the day with a gain of 6.06% at Rs 638.50 apiece.
Decline in Net Profit
Jubilant FoodWorks reported a 31.55% decline in consolidated net profit to Rs 66.53 crore for the July-September quarter from Rs 97.2 crore in the same period a year ago.
The company attributed part of the profit dip to the recent acquisition of DP Eurasia N.V. (DPEU), which altered the comparability of current results with previous quarters. “The consolidated financial results for the current periods are not comparable with those of previous periods,” Jubilant said.
To be sure, Jubilant acquired a controlling stake in DPEU, a key franchisee for Domino’s Pizza in Turkey, Russia, Azerbaijan, and Georgia, through its Netherlands-based subsidiary. The acquisition of DPEU was aimed at long-term expansion in international markets.
Strong revenue growth
Jubilant’s revenue from operations jumped 42.8% to Rs 1,954.72 crore, up from Rs 1,368.63 crore in Q2 FY24. Like-for-Like (LFL) growth rose 2.8% on the back of an 11.4% increase in its delivery channel.
At the operational level, EBITDA rose 43.8% to Rs 398.6 crore year-on-year, while the EBITDA margin improved by 14 basis points to 20.4%. The company’s push toward efficiency and expanding consumer touchpoints contributed to this improvement.
Company’s expanding footprint
Jubilant continued to expand its footprint aggressively and opened 139 stores across its brand portfolio. Its total number of stores stands at 3,130 as of September 2024. “Our commitment to convenience, innovation, and consumer value is driving competitive growth. We sustained broad-based momentum in Q2, achieving system sales of Rs. 45.1 billion in H1,” said Jubilant’s Chairman Shyam S. Bhartia and Co-Chairman Hari S. Bhartia.
Stock performance
Throughout the year, Jubilant’s stock has remained volatile. Over the past year, Jubilant’s shares have gained over 26.45%. As of Tuesday’s closing, Jubilant FoodWorks’ market capitalization stood at approximately Rs 41,850 crore.
