Jubilant Foodworks Q4FY23 PAT down -71% at Rs29 crore due to 488 bps compression in EBITDA margins
Jubilant Foodworks reported 7.98% higher revenues for the March 2023 quarter on consolidated basis at Rs1,270cr on top line store expansion. Sequential revenues were down -4.65%. Jubilant Foodworks is the master franchisee for big US based food brands like Domino’s Pizza, Dunkin Donuts and Popeye. Revenues crossed Rs5,000 crore during the year for the first time ever. In Q4, the company opened stores in 6 new cities and in FY23 overall it forayed into 56 new cities.
In the predominant Domino’s franchise, the dine-in and the delivery channel registered growth of 11.5% and 5.7% respectively. Despite the pressure on operating costs, the EBITDA margins continue to hold above 20%. Now Domino’s has a network strength of 1,816 stores spread across 393 cities. It has also been lately expanding the franchisee of Popeye and of Hong’s Kitchen.
Financial highlights for Mar-23 compared yoy and sequentially
Jubilant Foodworks | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 1,270 | ₹ 1,176 | 7.98% | ₹ 1,332 | -4.65% |
| Operating Profit (Rs cr) | ₹ 252 | ₹ 290 | -12.94% | ₹ 333 | -24.26% |
| Net Profit (Rs cr) | ₹ 29 | ₹ 97 | -70.50% | ₹ 80 | -64.49% |
| Diluted EPS (Rs) | ₹ 0.43 | ₹ 1.47 | ₹ 1.22 | ||
| OPM | 19.86% | 24.63% | 25.00% | ||
| Net Margins | 2.25% | 8.23% | 6.04% | ||
The cost of inputs were up sharply and that led to the gross margins fall in Q4FY23 from 76.9% to 75.3%. In addition, the EBITDA margins also fell from 25% to 20.1% yoy. The board has recommended dividend of Rs1.20 per share to shareholders subject to approval. During the year, the stock of Jubilant was also split from face value of Rs10 to face value of Rs2.