Jubilant FoodWorks Q2 FY25 Results: Over 6% Stock Jump Post Results

Jubilant FoodWorks Ltd’s shares rose over 6% on November 12, 2024, after the company reported strong Q2 FY25 performance, backed by healthy EBITDA, new store additions, and positive market commentary. The company, which operates Domino’s Pizza in India, posted strong growth despite rising costs impacting profitability.

Expanding Store Network with Focus on Domino’s and Popeyes

In Q2 FY25, Jubilant FoodWorks expanded its Domino’s network significantly, adding 50 new stores, up from 34 in the previous quarter. This brings the total number of Domino’s stores in India to 2,079. The company also maintained its target of opening 180 stores for the fiscal year.

For Popeyes, Jubilant added 4 new stores during the quarter, aiming to establish a presence in the top 30–40 cities over the next 12–18 months.

Q2 FY25 Financial Performance: Revenue Growth Amid Rising Costs

Jubilant FoodWorks posted a 2.8% like-for-like sales growth, primarily due to an 11.4% boost in the delivery segment. Total system-wide sales reached ₹2,271.9 crore, supported by an expanded store network of 3,130 stores, including the addition of 73 stores during Q2.

• Total revenue: ₹1,954.7 crore, up 43% YoY from ₹1,368.6 crore.
• Standalone revenue: ₹1,466.9 crore, up 9.1% YoY.
• EBITDA: Slight increase to ₹284.2 crore, maintaining a 19.4% margin (down 150 basis points YoY).

Cost Increases Impact Profit Margins

While revenue rose, increased costs weighed on profitability. Rising raw materials, employee expenses, and depreciation led to a drop in profit before tax to ₹87 crore, down from ₹120.5 crore YoY.

• Employee costs: Increased to ₹336.8 crore from ₹259.4 crore.
• Depreciation: Climbed to ₹201.4 crore from ₹141.9 crore.
• Cost of raw materials: Rose to ₹408.3 crore.

Key Operational Highlights: Growth in Digital Engagement and Mature Store Performance

Domino’s India witnessed an 8.1% revenue growth, driven by a 20.2% increase in order volume. Average daily sales (ADS) at mature stores hit a six-quarter high of ₹80,185. Domino’s app also achieved a record 12.8 million monthly active users (MAU), an 18.5% YoY increase, with new customer acquisition growing by 29%.

Despite these gains, overall PAT declined to ₹66.5 crore from ₹97.2 crore a year ago, and total comprehensive income dropped to ₹44.9 crore from ₹98.8 crore. The PAT margin stood at 3.7% for the quarter.

International Operations and Challenges

Internationally, Jubilant FoodWorks operates Domino’s stores in Turkey, Bangladesh, and Sri Lanka. While these markets contributed to the overall performance, temporary store closures in Bangladesh affected growth in the international segment.

On November 12, 2024, Jubilant FoodWorks share price opened at ₹626.35 and touched the day high of ₹651.00 at 10:20 AM.

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