Jubilant FoodWorks Ltd (JFL), the grasp franchisee of Domino’s Pizza in India and several other different markets, with a market capitalization of INR 31,517 crore, introduced plans on Wednesday to considerably develop its retailer community. The corporate goals to extend its Domino’s Pizza shops from 2,793 to over 5,500 throughout six international markets within the medium time period.
JFL operates in India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. Final yr, its subsidiary, Jubilant Foodworks (NS:) Netherlands BV (JFN), acquired DP Eurasia, the grasp franchisee of Domino’s in Turkey and Georgia, thus increasing JFL’s footprint past Asia.
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As of March 31, 2024, the JFL Group’s retailer community spans six markets and consists of 2,990 shops throughout 5 manufacturers. JFL holds franchise rights for 3 international manufacturers—Domino’s Pizza, Popeyes, and Dunkin’—and operates two of its personal manufacturers, Hong’s Kitchen in India and COFFY in Turkey.
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Nevertheless, digging deep into the basics by way of ProTips, some attention-grabbing items of data have surfaced. The corporate operates with attention-grabbing gross margins which is all the time a great signal for an effectively managed enterprise. Actually, in March 2024, the corporate posted a internet revenue margin of 12.67%, the best since September 2022.
The inventory additionally has a decrease volatility than the broader markets which makes it an easy-to-hold inventory, particularly for many who are extra on the conservative aspect. For dividend lovers, they might be joyful to know that the corporate has been paying dividends for the final 9 consecutive years.
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In India, JFL has set an formidable goal to open 4,000 Domino’s shops within the mid-term, up from its earlier purpose of three,000. Domino’s India is near a milestone of two,000 shops, at present working 1,995 shops throughout 421 cities, with 179 new shops added up to now yr alone.
“FY24 is a pivotal yr for JFL, remodeling us from India’s largest meals service firm into one of many largest in rising markets,” mentioned Hari S. Bhartia, co-chairman of JFL, through the firm’s earnings name on Wednesday.
For the March 2024 quarter, JFL reported a 23.9% year-on-year enhance in income to INR 1,572.8 crore and a staggering 632% rise in revenue to INR 208.9 crore. This revenue enhance was largely as a result of a internet achieve of INR 170.2 crore from the remeasurement of beforehand held fairness curiosity following the DP Eurasia acquisition.
CEO and MD Sameer Khetarpal highlighted that Domino’s India noticed a constructive turnaround in like-for-like gross sales in This autumn, pushed by strategic initiatives akin to strengthening regional infrastructure, bettering execution, revamping the model, and providing focused supply payment waivers to stimulate demand throughout a sluggish interval.
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