Jubilant FoodWorks Q1 results: Domino's operator reports consolidated net profit of Rs 69 cr

Jubilant FoodWorks Ltd (JBL), which operates fast-food chains Domino's Pizza and Dunkin Donuts, on Wednesday reported a consolidated net profit of Rs 69.06 crore for Q1FY22 against a net loss of Rs 74.47 crore in the year-ago quarter last fiscal despite the impact of the second wave of the COVID-19 pandemic. 

The company had posted a consolidated net loss of Rs 74.47 crore in the same quarter last fiscal, JBL said in a regulatory filing.

The company was expected to log a net profit of Rs 48.6 crore for the quarter ended June. Jubilant FoodWorks' revenue from operations surged 129.95% in the said quarter to 893.18 crore from Rs 388.41 crore in Q1 FY21 as localised COVID-19-induced lockdowns did not impact businesses the way the national lockdown did in the corresponding quarter last fiscal year. 

JBL said its higher revenue in the first quarter was driven by Domino's like-for-like sales growth of 120.4% and store growth of 114.2%.

"The growth in the delivery channel, which grew by 123.7%, mitigated the impact on account of the dine-in channel being shut for a long time and mobility restrictions impacting the takeaway channel," it added.

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The revenue from operations on a standalone basis jumped 131.14% to Rs 879 crore as against Rs 380.28 crore in Q1FY21.

The company's Pre-tax profit stood at Rs 89.81 crore in Q1 FY22 as compared to a pre-tax loss of Rs 97.69 crore in Q1 FY21.

 "Q1 FY22 was one of the most challenging quarters with the sudden onslaught of the second wave of the pandemic," the company said in a statement.

The quick-service restaurant company also reported EBITDA (earnings before interest, tax, depreciation, and amortization) of Rs 211.50 crore in Q1 FY22, a 778.7% jump over Q1FY21. Jubilant FoodWorks further stated that its EBITDA margin stood at 24.1% in Q1 FY22 as against 6.3% in Q1 FY21.

In the context of same-store sales growth, the company logged a growth of 114.2% in the June quarter as against negative growth in the corresponding quarter last fiscal.

During the quarter, the company said it opened 29 new stores -- including 20 new Domino's stores and 3 new stores each for Hong's Kitchen, Ekdum! and Dunkin' Donuts -- despite the on-ground disruption caused by the second-wave of COVID-19.

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"A disciplined control on costs led to healthy EBITDA margins. Our business model has emerged stronger from the pandemic, and we are looking ahead with optimism, confident of delivering hyper-growth and transforming into a food-tech powerhouse," said Pratik Pota, chief executive officer and whole-time director at Jubilant Foodworks.

Commenting on the performance for Q1 FY22, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant Foodworks Limited in a joint statement said, "Q1 FY22 was one of the most challenging quarters with the sudden onslaught of the second wave of the pandemic. Given the severity of the situation, our most important priority during the quarter was to support our employees and their families."

"We are extremely proud of the manner in which the team came together to deliver a strong and resilient performance. With vaccinations well underway, we believe that the worst is behind us and we are confident of delivering strong, sustained growth in the periods ahead," they added.

Shares of Jubilant FoodWorks ended 0.4% lower at Rs 3,072 at NSE on Tuesday.