Jubilant Foodworks Q2 net profit drops 32% YoY, but revenue surges by 43%

Jubilant Foodworks Ltd reported a 31.5 per cent decline in net profit to Rs 66.53 crore for the second quarter of FY25, down from Rs 97.2 crore in the same quarter last year, as per its exchange filing on November 11. The company’s profitability was impacted by higher interest costs and ongoing expansion activities.

Despite the drop in profit, Jubilant’s revenue from operations surged 43 per cent year-on-year to Rs 1,954.71 crore, compared to Rs 1,368.63 crore in Q2FY24. Sequentially, revenue was marginally higher than Rs 1,933.06 crore reported in the June quarter of FY25.

Key performance highlights

On a standalone basis, the company’s revenue grew by 10.2 per cent year-on-year to Rs 1,482 crore. EBITDA rose slightly by 1 per cent to Rs 284 crore, while EBITDA margins narrowed to 19.1 per cent from 20.9 per cent in the previous year. The net profit stood at Rs 54 crore, marking a 26 per cent drop from Rs 72 crore in Q2FY24.

Jubilant Foodworks, which operates popular brands like Domino's Pizza, faced headwinds in the quarter due to weaker sales in the pizza QSR segment. Average revenue per store dipped by three per cent, and like-for-like (LFL) growth remained sluggish at three per cent. The removal of delivery fees also put pressure on margins.

The company opened 40 new stores during the quarter as part of its expansion strategy, which, along with rising interest costs, affected overall profitability.

Stock performance

Jubilant Foodworks shares ended down 0.77 per cent at Rs 602.6 on the NSE post the earnings announcement.

Zee Business had projected the company’s consolidated net profit at Rs 64 crore versus Rs 97 crore year-on-year. Revenue was estimated at Rs 1,950 crore, in line with the reported figure. EBITDA was expected to be around Rs 390 crore, with margins steady at approximately 20.4 per cent.

Despite the revenue boost, rising costs and challenges in the core pizza segment remain a concern for the company going forward.