Jubilant FoodWorks ensures solid growth through strategic acquisitions

Jubilant FoodWorks Limited, a major player in the foodservice sector in emerging markets, has announced its financial results for the fiscal year and quarter ending March 31, 2024.

Shyam S. Bhartia, Chairman, and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited, noted: “There is a significant turnaround in FY24 as the acquisition of DP Eurasia strengthens the JFL Group’s profitable growth trajectory. This acquisition further cements JFL’s partnership with Domino’s, the world’s largest pizza company, to grow profitably in high-potential emerging markets. During the year, the Group also made significant progress in supporting and nurturing new growth vectors, strengthening its position as a leading foodservice company in emerging markets.“

Sameer Khetarpal, MD & CEO, Jubilant FoodWorks Limited, commented: “The March quarter results were remarkable as Domino’s India’s comparable stock trajectory changed in the fourth quarter. This was achieved through several strategic interventions, including strengthened regional infrastructure, improved on-ground execution, comprehensive brand modernization and enhanced value proposition through targeted delivery fee waivers during periods of weak demand. Furthermore, the year saw significant progress across each strategic priority, with increased business reinvestments that negatively impact near-term margins but will be critical to driving future growth across all brands and markets.“

The company’s operating revenue increased by 9.6% to Rp 56,541 million. The JFL Group network currently includes 2,991 stores, and a record number of 356 net new stores were opened this year. Gross profit increased by 10.3% to R43,130 million, with a gross margin of 76.3%. Operating EBITDA amounted to PLN 1.5 thousand. 11,435 million, with an EBITDA margin of 20.2%. Profit after tax was Rs 4,008 million with a PAT margin of 7.1%.

The Board of Directors recommended a dividend of Rs 1.2 per share with a face value of Rs. 2 for the financial year ended March 31, 2024 in the amount of R792 million, pending approval by shareholders at the Annual General Meeting.

During the quarter, operating revenues increased by 23.9 percent to Rs 15,728 million. Gross profit increased by 26.4% to R12,055 million, with a gross margin of 76.6%. Operating EBITDA was R3,103 million, with an EBITDA margin of 19.7 percent. Profit after tax for the quarter was Rs 2,089 million with a PAT margin of 13.3%.

Revenue from operations in India increased by 6.3% to Rs 13,313 million, mainly driven by 4.9% growth in Domino’s India. Domino’s comparable sales (LFL) growth was 0.1%, while Domino’s delivery LFL was 7.8%. New brands contributed 1.4% to overall growth and a total of 89 stores across all brands were added in India.

Internationally, operating revenues amounted to Rs 2,427 million, mainly driven by two-month revenues from Turkey, Azerbaijan and Georgia of Rs 2,174 million. Domino’s revenue in Bangladesh increased by 52.1% to Rs 134 million thanks to accelerated network expansion. Domino’s revenue in Sri Lanka increased by 4.1 percent to R119 million. A total of 23 stores have been added across all international markets.