Vivid News 24: On Thursday, investors considered the weak operational performance in the December quarter of the current fiscal as they continued their losing streak for the second straight session. Jubilant FoodWorks, which owns the three international brands Domino’s Pizza, Dunkin’ Donuts, and Popeyes, saw its shares drop to a 2-year low in intraday trade.
The stock dropped as much as 12.7% in two days due to the Q3 results, reaching a low of 425 on the BSE, its lowest position since December 2020. Jubilant FoodWorks shares began 2.5% lower on Thursday at 444.95 on the BSE compared to their previous closing price of 456.60.
The stock dropped as high as 6.9% throughout the day to $425 before settling at $435.85, down 4.54%. The company’s market capitalization was 28,759 crore at the close of trading on the day. The BSE Sensex, in contrast, closed at 59,932, up 224 points or 0.38 percent.
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Jubilant FoodWorks has experienced a 31.75% negative return over the past year, and a 24% decline over the previous six months. The stock fell more than 24% in a single month, but just roughly 12% in a single week. From its 52-week high of $706.75 reached on February 2, 2022, the counter has decreased by 40%.
Jubilant FoodWorks reported consolidated profit after tax (PAT) of 80.4 crores for the three months ended December 31, 2022, a decrease of 39.7% from 133.2 crores in the corresponding quarter of the previous year. In Q3FY23, operating revenue increased by 10% to $1,332 crore from $1,210.8 crore in the same quarter last year.
Operating profit, or EBITDA, decreased 10.2% from 319.1 crores to 286.4 crores in one year. In response to inflationary pressure, EBITDA margins also decreased to 21.5% from 26.4% in the corresponding period last year. According to Jubilant FoodWorks CEO and MD Sameer Khetarpal, “We experienced a modest top-line increase as LFL growth for Domino’s was flat.
As a result of this and historically high inflation, margins were compressed. Our plan to restart business growth has been refined. Customer-first, Data, and technology ahead, Operational excellence, and Foundation of people and culture are now among our top priorities. We are certain that the interaction of these sets of priorities will aid us in capitalizing on the enormous potential of the food service sector as well as navigating existing challenges.
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