The shares of one of India’s largest food service companies jumped 4 percent in the day’s trade after it acquired an additional 2.7 percent stake in DP Eurasia N.V., which is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan, and Georgia for Rs. 35 Crores.
At 12:28 p.m. the shares of Jubilant Foodworks Limited were trading at Rs. 562.70, up 3.30 percent from its previous day’s close price of Rs. 544.70 and its market capitalization is Rs. 37,103 Crores.
Jubilant Foodworks Netherlands B.V. a wholly-owned subsidiary of the company has acquired 39,10,153 ordinary shares of DP Eurasia N.V. at 84.4 pence for an aggregate consideration of Rs. 35 Crores, thereby increasing its stake from 48.84 percent to 51.50 percent of total issued share capital of DP Eurasia. Following this acquisition DP Eurasia has become a subsidiary of Jubilant Foodworks Netherlands B.V.
DP Eurasia is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan, and Georgia. DP Eurasia offers pizza delivery and takeaway eat-in facilities at its 694 stores. It is the largest pizza delivery company in Turkey. In addition to the pizza business, the Group also has its own coffee brand, COFFY, which trades from 67 stores at period-end, 78 percent of which are franchised.
The company’s revenue from operations grew 17.33 percent from Rs. 4,396 Crores in FY22 to Rs. 5,158 Crores in FY23, accompanied by decreasing profits of Rs. 418 Crores to Rs. 353 Crores.
It has reported a return on equity (ROE) of 18.1 percent and a return on capital employed (ROCE) of Rs. 16.2 percent, it is making good returns on its equity and capital employed.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold a 41.94 percent stake, Domestic Institutional Investors hold 22.16 percent and Foreign Institutional Investors hold 26.14 percent.
Jubilant Foodworks Limited is one of India’s largest food service companies which holds the master franchise rights for some of the famous international brands like Domino’s Pizza, Dunkin Donuts, and Popeyes.
Written by: Bharath K.S
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