Jubilant FoodWorks Q4 net profit soars to Rs68.07 crore
New Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Tuesday, said its fourth quarter profit jumped 10-fold backed by higher margin and a 26.5% growth in same store sales in Domino’s Pizza.
Same-store sales growth, which is a measure of sales at outlets that have been open for at least a year, during January-March quarter was the highest in six years at Domino’s Pizza.
Net profit jumped to Rs68.07 crore from Rs6.72 crore in the corresponding year-ago quarter. Revenue from operations increased 27.3% to Rs779.82 crore from Rs612.77 crore a year ago.
“The strong performance in Q4 FY 18 was driven by the continued success of All New Domino’s product upgrade rolled out in August and the traction of the Every Day Value pricing that provides customers attractive value for money. In addition, strong growth in online sales also contributed to overall growth, with online sales now contributing to 63% of delivery sales,” the company said in a statement.
For the full year, the company’s operating revenue grew 17.1% to Rs2,980.44 crore as compared with Rs2,546.07 crore in the previous year. Net profit for the year more than trebled to Rs206.40 crore, backed by a 13.9% growth in same-store sales at Domino’s Pizza, from Rs67.25 crore previous year.
“FY18 has been a year of transformation for JFL. At the start of the year, we identified and articulated a new strategy for growth, and we are pleased to see that this translated into strong growth through the year, including in Q4. In addition, our sharp focus and control on costs as also our progress in reducing Dunkin’ Donuts losses led to a healthy increase in profitability. We will continue to execute on our strategy in the new financial year and are confident that will translate into sustained and profitable growth in our business,” Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in a joint statement.
Total expenses in the quarter ended 31 March 2018 rose by 18.1% to Rs652.06 crore while the same has increased by 10.2% for the full year. Earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of operating profitability, increased by 111.1% to Rs127.76 crore in the January-March quarter.
During the quarter, the company added seven Domino’s outlet, taking the total store count to 1,134. It closed eight Dunkin outlets and added one to lower the total store count to 37.
Jubilant FoodWorks, which has been working on getting Dunkin to achieve break-even, has halved losses from Dunkin stores during the fiscal year. “In Dunkin’ Donuts, we halved our losses in line with our stated commitment through a focus on donuts and beverages and shutting of unprofitable stores,” Pratik Pota, chief executive and whole-time director of Jubilant FoodWorks, said in the statement.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.