Jubilant FoodWorks Q3 profit up threefold at Rs66 crore2 min read . Updated: 20 Jan 2018, 12:20 AM IST
Jubilant FoodWorks reported over three-fold jump in Q3 profit at Rs66.02 crore, mainly on account of higher income
New Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Friday said fiscal-third quarter profit more than tripled on higher sales and better cost management. Net profit rose to Rs66 crore in the quarter ended 31 December from Rs19.97 crore a year ago. Operating revenue rose 20.7% to Rs795.16 crore from Rs658.83 crore.
The growth in revenue was backed by a 17.8% 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.
“Our emphasis on driving the key strategic pillars is translating into healthy same-store sales growth year-on-year, while setting the base for consistent growth in line with the potential of the QSR (quick service restaurants) space. The lowering in rate of applicable GST (Goods and Services Tax) to 5% has allowed us to demonstrate our commitment to deliver the best value proposition as we passed on the benefits of lower tax rate to the customers. We believe this to be a positive change, one that will impact the restaurant industry favourably," Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in a joint statement.
Total expenses in the quarter ended 31 December rose to Rs697.58 crore from Rs632.9 crore in the same period a year ago. Earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of operating profitability, increased by 114% to Rs136.9 crore in the December quarter. Ebitda margin widened to 17.2%, the highest in 19 quarters. During the quarter, the company added three Domino’s outlet and closed one, taking the total store count to 1,127. It closed nine Dunkin outlets and added one to lower the total store count to 44.
Jubilant FoodWorks, which has been working on getting Dunkin to achieve break-even, has halved losses from Dunkin stores this fiscal year, the company said in a statement to stock exchanges.
“Our tight and disciplined control on costs led to healthy margin expansion during the quarter. Dunkin’ Donuts continued on its stated path of break-even with greater focus on donuts and beverages and closure of unprofitable stores. Overall, we are confident of driving profitable growth in the business and remain committed to executing against the strategic pillars of superior product and innovation, enhanced value, seamless customer experience, and improved technology, while bringing a strong focus on cost management," Pratik Pota, chief executive and whole-time director of Jubilant FoodWorks, said in the statement.
Shares of Jubilant FoodWorks rose 7.73% to Rs2,091.55 on BSE, while the benchmark Sensex gained 0.71% to 35,511.58 points.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.