Jubilant FoodWorks, the global owner of Domino's franchises, reported a year-on-year (YoY) decline in standalone profit for the second quarter of fiscal year 2024 (Q2 FY24), with a 39.5% drop to INR 72.1 crore ($9.6 million). This underperformed the ET Now Poll's estimate of INR 84 crore ($11.2 million). Concurrently, the profit after tax (PAT) margin dipped by 38 basis points to 5.4%, and the EBITDA margin decreased by 23 basis points to 20.9%.
Despite the decline in profit, Jubilant FoodWorks saw a YoY revenue increase of 4.5% to INR 1,344.8 crore ($179.3 million), supported by a 7.9% rise in Domino's delivery channel sales. The company also experienced high customer engagement, with a record 10.6 million app downloads marking a 17.8% growth, and 10.8 million monthly active users.
The firm's Domino's Cheesy Rewards loyalty program saw a 16% rise in enrollment, reaching 19.5 million members, with loyalty orders making up half of all orders. Additionally, Jubilant opened 60 new stores in India, expanding its total number of stores across all brands to 1,949.
The company reported a sequential improvement in average daily sales and gross margin for its 1,368 mature stores, indicating a 1.4% sequential increase and early signs of structural enhancement in the business.
CEO and MD Sameer Khetarpal noted order-led growth and heightened consumer engagement as significant factors contributing to the company's performance during this period. Jubilant FoodWorks also launched five Popeyes restaurants, four Hong's Kitchen stores, and one Dunkin' store with a coffee-first identity, expanding into new cities.
The company's sales growth was strong in Bangladesh at 85.6%, and modest in Sri Lanka at 2.0%, but reported negative like-for-like (LFL) growth for Domino's. Despite the mixed international performance, Chairman Shyam S. Bhartia and Co-Chairman Hari S. Bhartia remain optimistic about their tech investments and delivery growth strategy.
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