Jubilant FoodWorks Q2 profit soars to Rs48.5 crore
New Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Thursday said net profit more than doubled in the quarter to 30 September, helped by higher sales and cost discipline.
Net profit rose to Rs48.5 crore in the three months from Rs21.56 crore a year ago. Revenue rose 9.2% to Rs726.6 crore from Rs665.5 crore.
The rise in profit was backed by a 5.5% increase in Domino’s Pizza same-store sales, a measure of sales at outlets that have been open for at least a year, the company said in a statement.
“A combination of mid-single digit same store sales growth and disciplined cost management led to another solid performance in Q2 FY18. We made good progress towards our goals during the quarter in both Domino’s Pizza and Dunkin’ Donuts. The performance strengthens our conviction in the strategy for growth unveiled earlier in the year, and reinforces our belief in the potential for the JFL business in the time ahead,” Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in the statement.
Total expenses in the quarter ended 30 September rose to Rs657.01 crore from Rs637.87 crore in the same period a year ago.
Earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of operating profitability, increased by 59% to Rs102.2 crore. The Ebitda margin, at 14.1%, was the highest in fourteen quarters.
During the quarter, the company added one Domino’s outlet and closed one, keeping the total store count at 1,125. It closed five Dunkin’ outlets and added two to lower the total store count to 52.
Shares of Jubilant FoodWorks rose 2.45% to Rs1,642.70 on BSE while the benchmark Sensex gained 0.32% to 33,147.13 points.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.