Jubilant Foodworks Ltd

"Stronger Together" is a guiding principle that has shaped our journey. It reminds us that our greatest achievements are not the result of solitary efforts but of collective endeavours. It is through our combined strengths, shared visions and mutual support that we have been able to delight consumers, surpass their expectations, overcome challenges, reach new heights and in the process have built India's largest foodservice Company that stands resilient and adaptable to the changing market dynamics.

In this context, FY 2023-24 will be remembered as a landmark year in our corporate history. The acquisition of DP Eurasia catapults us from being India's largest foodservice Company to also chart our course for becoming one of the leading emerging markets' foodservice Company.

The JFL Group Store Network, across six markets and five brands, is now 3,000+ stores strong. When viewed from the lens of sustainable long-term growth potential, through our choices of market selection, we are in a position to potentially serve ~22% of the world's population.

Our strategically curated cuisine segments matched with some of the best global portfolio of franchised and own-brands is one of the biggest competitive advantages for the JFL group. We are progressing efficiently to serve consumers in each of the sub-categories viz. Pizza, Chicken, Coffee and Indo-Chinese. We are also excited about how the combined effects of a portfolio of brands - albeit at different stages of brand development - will play out in the future when viewed from the perspective of gaining share of meal occasions within the growing emerging market consumer base, while benefiting all stakeholders.

On top of it, the complementarity of the business model with corporate and franchise stores puts us in a unique position to grow competitively and profitably.

This FY'24 also marks the unification of two Domino's markets – India and Turkey – both of which incidentally opened their first stores in 1996. Through early and strategic investments in own commissaries and technology stack, these two markets have evolved together to create a dominant and profitable pizza franchise. By leading these two large emerging market opportunities globally for Domino's, we have further deepened our relationship with the brand. JFL group now operates nearly 2,800 Domino's stores and we have podium positions across all territories. India and Turkey are large growing markets with one of the highest profitability metrics within the system. In Bangladesh, we recently achieved market leadership and have also registered mid-single digit EBITDA during the year. Azerbaijan and Georgia, albeit small are franchised, profitable markets with further headroom for growth. During the year, Domino's Sri Lanka became the fastest QSR in the country to scale to 50 stores.

We have reviewed the potential of all territories and are confident to profitably scale Domino's network to 5,500+ stores as we see a significant headroom to grow and immense potential in the territories we operate in.

We are also happy to share that we have received the prestigious Gold Franny Award for Domino's India and Domino's Turkey. This prestigious recognition of the two key markets by Domino's Pizza Inc is a testament to the exceptional operational performance, store growth and organisational dedication.

With the opening of 356 stores at the group level in FY'24, we are proud to announce that we have achieved a record milestone of averaging one store opening per day. The JFL Group network strength is now 2,991 stores. For Domino's, we opened 240 stores in the year.

Revenue from Operations of H56,541 million increased by 9.6%. Gross Profit was H43,130 million, increased by 10.3%. Gross margin stood at 76.3%. Op. EBITDA came in at H11,435 million and Op. EBITDA margin was 20.2%. For continuing operations, Profit after tax came in at H4,008 million with PAT margin at of 7.1%. To better appreciate the scale of our business, the overall revenue with DP Eurasia for full year would have been H69,289 million and the normalised constant currency growth including DP Eurasia even in FY'23 base would have been 10.8%. Similarly, the system sales would have been H80,300 million. The Board of Directors of the Company has recommended a dividend of H1.2 per equity share of the face value of H2 each, amounting to H792 million, subject to shareholders' approval at the Annual General Meeting.

We have made remarkable strides against our strategic priorities.

The first set of priorities relates to Customer and Market First.

The underlying objective here is to profitably build a multi-brand and multi-cuisine food service organisation.

In India, despite facing a challenging demand environment, I am pleased to announce that the Domino's team has achieved positive LFL growth in Q4, without implementing any price increase since two years.

The latest brand rehaul for Domino's India on the lines of – It Happens Only with Pizza – is aimed at serving two broad purposes:

1. Reimagine the brand as a companion for every joyful moment for the new generation. This will be done through a 360-degree brand communication, including store branding, delivery boxes, uniform of store personnel etc.

2. Grow share of pizza occasions – While Domino's is a leader in pizza category, through ‘It Happens Only with Pizza', we intend to target consumers' mindshare allowing Domino's to gain share of occasions in a $51 billion foodservice market, where pizza is just $1 billion.

The new brand's performance is tracking as per plan with a clear path to scale-up and profitability

It brings me great pride to share that DP Eurasia has successfully built the 8th largest caf? brand in Turkey – COFFY – in just over two years. With approximately 100 stores currently, we view COFFY as a promising and profitable growth lever for the JFL group.

The next set of priority is driving Operational Excellence. The Group places inordinate focus on continuous improvement when it comes to executing with excellence and FY'24 was no exception.

The commissioning of the one-of-its-kind Jubilant Food Park in Bengaluru, significantly enhances our control over our core-value chain as we have insourced spice packaging and Chicken marination, in addition to existing set of capabilities available in the Greater Noida commissary.

Domino's is known for its strong execution and delivery experience. With nearly 2,000 stores, the existing four regions in India were managing a very large portfolio with ever growing complexity which comes with network densification. To meet our medium-term ambition of Domino's India stores and the runway beyond, we have made adjustments to Domino's regional management structure for even sharper on-ground execution and to become even more agile as an organisation. We have now invested in three new regions to transition to a seven region structure in Domino's. This incremental investment in the new structure will go a long way in further bolstering our key competitive advantage of best-in-class operational prowess.

We launched several efficiency enhancement programmes aimed at process simplification and productivity improvement. Christened, as Project Vijay, we have made this an organisation-wide programme and seeing more ideas come in. We dialed up sourcing efficiency, efforts to localise ingredients and are working to develop alternate vendors resulting in improved cost base without impacting the quality of ingredients. The savings pool created by Project Vijay across all cost lines was re-invested back into the business by giving value back to the consumers. While, we are conscious that this results, in a short-term drag on margins, it is helping us increase orders at a rapid pace and recruit new customers in the organised pizza category. Order growth, as you might be aware, is the primary driver of sustained growth in the restaurant segment and this, in turn, will reduce the negative operating leverage quarter-on-quarter, lending support to margin recovery.

The next set of priority is focus on Data and Technology Forward.

Offering the best value to consumers with tech-based convenience has been the cornerstone of the JFL group's success over the years and we will continue to build on this foundation as we grow our portfolio of brands. We have made significant changes in the Domino's app which has led to record high customer conversion.

We are delighted and equally humbled by the unprecedented response received from our loyalty programme – Domino's Cheesy Rewards. Thanks to our deep commitment to constantly identifying ways to offer more value to our customers, incredible brand trust and service satisfaction, we now have more than 23.1 million enrolled members and their order contribution is ~50% in March '24. This is an incredible testament to the strength of our operations and tech ecosystem to come together and champion the initiative to reward loyal members.

The continuous digitsation of operations through dedicated Rider App, OSSOM app for store teams, introduction of Tablet POS ordering are some of the many initiatives introduced with a single-minded-objective of helping store teams serve consumers better. Significant efforts were also made to strengthen the Foundation of People and Culture which is essentially a pre-requisite for delivering on the first three priorities.

During the year, we codified the values unique to the JFL group under the purpose of Serving JOY which is the North Star for the choices we make, decisions we take, how we work and what we invest in. Serving JOY is the guiding light when we put the CUSTOMER FIRST, endeavour to find A BETTER WAY, to express CARE, to thrive in HUSTLE and to chase our GROWTH ambitions.

We continue to progress on our DE&I agenda to build more diverse, inclusive and representative JFL. 34% of workforce are now women and we will continue to find ways and means to actively promote the importance of diversity and inclusion within our workforce. During the year, we were also certified as Great Place to Work for the second time in a row.

We made significant progress against our sustainability targets shared with you last year. Notably, we now have the largest own-EV fleet with 11,500+ e-bikes which is now 47% of our overall fleet. The successful implementation of India's first No-antibiotics-ever in poultry sourcing sets up a firm building block as we scale up chicken offerings. During the year, we also signed a Power Purchasing Agreement to procure ~10 million units from renewable sources for our Jubilant Food Park in Bangalore. This will help us significantly enhance the renewable energy mix.

As we reflect on our journey, let us remember that our success is a testament to what we can achieve when we work together. It is a reminder that our collective potential far exceeds the sum of our individual capabilities. Together, we have achieved remarkable milestones and together, we will continue to reach new heights.

Thank you.