Jubilant FoodWorks Q2: Foodservice company reports positive numbers – Profit up 58%, margins dip

A food service company Jubilant FoodWorks reported strong numbers in the second quarter of the financial year 2021-22 (Q2FY22) almost on all fronts while witnessing pressure on margins. The growth in the fast-moving food chain company is mainly driven by economic activity normalising. 

On a standalone basis, Jubilant Food’s profit grew by 58 per cent to Rs 121.5 crore in September-quarter of FY22, as against 76.9 crore in the same quarter a year ago; while it reported a 36.6 per cent jump in the Q2 revenue to Rs 1100.7 crore as compared to Rs 805.5 crore in Q2FY21.

See Zee Business Live TV Streaming Below:

It reported 33.2 per cent growth in Q2 EBITDA to Rs 2860 crore as compared to 2147 crore in a year-ago period during the same quarter, while EBITDA Margin slipped to 26 per cent from 26.7 per cent year-on-year basis in Q2 FY22, Jubilant FoodWorks said in a statement. 

The company in its release said, “As compared to the pre-Covid period of Q2FY20, Domino’s system sales grew by 11.6 per cent. This was driven by continued strong momentum in Delivery and Takeaway channels as they grew by 36.8 and 72.2 per cent in Q2FY22 versus Q2FY20 respectively.”

“Q2FY22 also saw a record number of new stores, with 60 new stores opened during the quarter – 55 stores of Domino’s, 2 stores each for Dunkin’ and Hong’s Kitchen and 1 store of Ekdum!,” Jubilant Food further said in its results statement.

A Reverse Bookbuild process was launched to enhance the Company’s indirect shareholding in DP Eurasia N.V., the fifth largest master franchisee of Domino’s Pizza. Additionally, it also initiated the process of enhancing its shareholding in Jubilant Golden Harvest Limited, Bangladesh to 90 per cent, to strengthen its presence in the fast-growing and critical market of Bangladesh.

The same-store sales growth stood at 26.3 per cent in the July-September period, the company said in the release, while it has grown almost 55 per cent during the first half of FY22.

The shares of Jubilant FoodWorks which were trading weak since the beginning of the session recovered marginally after the second-quarter results announcement. The stock at around 02.34 pm trading around 6 per cent to Rs 4077.25 per share on the BSE.