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Jubilant FoodWorks Q3 earnings: Net profit rises 7.5% YoY, misses Street estimates; board approves stock split

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Jubilant FoodWorks Q3 earnings: Net profit rises 7.5% YoY, misses Street estimates; board approves stock split

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As of Q3 FY22, the company opened 75 Domino's stores, surpassing Street expectations. This is the highest number of new locations opened by any franchisee in any market.

Jubilant FoodWorks Q3 earnings: Net profit rises 7.5% YoY, misses Street estimates; board approves stock split
Jubilant FoodWorks—the parent of Domino's Pizza and Dunkin' Donuts—reported its third-quarter earnings Wednesday, posting a net profit of Rs 133.2 crore, a jump of 7.5 percent year-on-year in the financial year 2022. The company had posted a net profit of Rs 123.9 crore in the corresponding quarter of the previous fiscal. However, the company missed Street estimates by 11.2 percent. CNBC-TV18 poll of analysts had pegged the company’s net profit to rise to Rs 150 crore.
The board of Jubilant FoodWorks have approved a stock split to "enhance the liquidity of the company's equity shares and encourage the participation of small investors by making it more affordable," the company said in a press release. Each stock of face value of Rs 10 would be split into five stocks having a face value of Rs 2, each fully paid up.
Its revenues came in at Rs 1,210.8 crore for the quarter under review, 13.2 percent higher than revenues of the corresponding quarter of the previous year. However, it missed Street estimates by 3 percent.


"The growth was driven by an improved recovery in the dine-in channel, well supported by a continued momentum in delivery channel," the company said.
The EBITDA of Domino's parent company rose 14 percent YoY to Rs 319.2 crore from Rs 280 crore. Its EBITDA margin also surged over 10 basis points to 26.3 percent. The company's EBITDA missed the Street expectations by 1.8 percent. But its EBITDA margin exceeded the expectations by 30 basis points. CNBC-TV18 poll had expected EBITDA margin to come in at 26 percent.
The company added 75 Domino's stores in Q3 FY22, exceeding Street expectations. CNBC-TV18 poll had pegged the store count to grow by 45-50 stores. "This is the highest ever number of new store openings by any franchisee in any quarter in any market," it said. Domino's also reported a growth of 7.5 percent in same-store sales, against the poll of 8 to 10 percent.
Compared with pre-covid period of Q3 FY20, Domino's system sales recovered by 112.9 percent. "This was attributed to recovery in delivery and takeaway channels by 128 percent and 148 percent, respectively. Dine-in channel witnessed a healthy recovery at 71.7 percent," the release added.
The company had recently announced hitting the milestone of 1,500 Domino's stores in India, and "is confident of continuing its network expansion in the period ahead."
At the last count, Jubilant FoodWorks shares were down over 4 percent to Rs 3,299. In comparison, Sensex was up over 1 percent to 59,534.
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