Jubilant FoodWorks, the master franchisee for Domino’s Pizza in India, reported robust financial results for Q2 FY25, ending on September 30, 2024. The company achieved a 2.8% like-for-like sales growth for the quarter, propelled by an impressive 11.4% increase in the delivery segment. System-wide sales reached ₹2,271.9 crore, supported by a network expansion to 3,130 stores, with 73 new stores added during the quarter.
As of 9:15bam the shares were trading 4.04% higher at ₹626.35 on NSE.
The overall revenue from operations climbed to ₹1,954.7 crore, marking a 43% YoY increase from ₹1,368.6 crore in Q2 FY24. Standalone revenue was ₹1,466.9 crore, up 9.1% YoY, with EBITDA rising slightly to ₹284.2 crore, though the EBITDA margin dipped by 150 basis points to 19.4%. Total income for the quarter also increased to ₹1,984.9 crore from ₹1,375.7 crore in the previous year, surpassing CNBC-TV18 poll estimates, which had forecast revenue at ₹1,425 crore.
However, rising costs impacted profitability. Profit before tax fell to ₹87 crore from ₹120.5 crore, mainly due to higher operational costs, which rose to ₹1,895.7 crore from ₹1,290.2 crore in the previous year. Employee benefits expenses surged to ₹336.8 crore, up from ₹259.4 crore, while depreciation costs increased to ₹201.4 crore from ₹141.9 crore. Additionally, raw material costs rose to ₹408.3 crore.
In response to increasing competition and consumer expectations for faster service, Jubilant FoodWorks announced plans to reduce delivery times from 30 minutes to 20 minutes. This strategic shift, discussed in the company’s post-earnings call on November 11, aligns with the rising quick-commerce trend. The management highlighted positive growth in customer additions and order volumes, especially during peak hours from 11:00 am to 3:00 pm, and emphasized a stable pricing approach over the last nine quarters, offsetting delivery fee waivers with selective packaging charges.
Domino’s Pizza to cut delivery time to 20 minutes: Jubilant FoodWorks
These strong Q2 results underscore Jubilant FoodWorks’ adaptability and focus on operational efficiencies to drive growth in a competitive market.
