Jubilant FoodWorks profit more than triples in June quarter on higher margins
Jubilant FoodWorks’ net profit jumped to ₹74.68 crore from ₹23.84 in the corresponding year-ago quarter
New Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Wednesday said its first quarter profit more than tripled, backed by higher margin and a 25.9% growth in same store sales at Domino’s Pizza.
Same-store sales growth is a measure of sales at outlets that have been open for at least a year. However, same-store growth at Domino’s Pizza during April-June 2018 quarter was marginally lower compared with the immediate past quarter at 26.5% which was the highest in six years.
Net profit jumped to ₹74.68 crore from ₹23.84 in the corresponding year-ago quarter. Revenue from operations increased 26% to ₹855.06 crore from ₹678.82 crore a year ago. Its profit margin after tax for the April-June quarter jumped to 8.7% as compared with 3.5% in the year-ago quarter.
“The strong performance in Q1 FY19 was on account of a good response to the Every Day Value offer on Regular Pizzas launched in March 2018, and which was supported aggressively during the IPL T20 cricket season. In addition to this, the continued success of the All New Domino’s product upgrade launched last year also drove a strong growth in core pizza orders,” the company said in a statement.
Total expenses in the quarter ended 30 June 2018 rose by 19% to ₹713 crore as raw material cost jumped 35.7% during the quarter under review. Earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of operating profitability, increased by 78.5% to ₹142.06 crore in the April-June quarter.
During the quarter, the company added 13 Domino’s outlets, and closed three, taking the total store count to 1,144. It closed one Dunkin outlets and added one during the quarter.
“We are pleased to start the year on a strong note with our robust performance in Q1 FY19. The strong growth in Domino’s came on the back of a superior product, value for money delivery and growing digital contribution. This together with our focus on achieving break-even in Dunkin’ Donuts by the end of the financial year will continue to drive profitable growth for us,” Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in a joint statement.
Jubilant FoodWorks, which has been working on getting Dunkin to achieve break-even and had halved losses from its stores during the last fiscal year, has witnessed growth at Dunkin. “Dunkin’ Donuts saw encouraging growth and made good progress towards profitability on the back of successful innovations and disciplined cost management,” said Pratik Pota, CEO and whole time director, Jubilant FoodWorks.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.
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