OPEN APP
Home / Companies / Company Results /  Jubilant FoodWorks’ profit jumps 22% in Q3 on robust sales recovery

NEW DELHI : Jubilant FoodWorks Ltd, the operator of the Domino’s Pizza and Dunkin’ Donuts restaurants in India, reported a 22% rise in quarterly profit because of a surge in delivery and takeaway sales.

Net profit rose to 123.91 crore in the three months ended 31 December from 101.80 crore in the year earlier, the company said on Wednesday. Consolidated revenue from operations, however, fell marginally to 1,069.27 crore from 1,071 crore due to seating-capacity restrictions in restaurants. Domino’s witnessed complete sales recovery during the fiscal third quarter backed by continued momentum in delivery and takeaway channels, which grew by 18.5% and 64.3%, respectively, from the year-ago period, the company said.

Also Read | The Finance Commission doesn’t rock the federal boat

The sales recovery continued in January with overall sales for Domino’s growing by 6%. The company witnessed its highest-ever app downloads during the quarter at 7.4 million.

“We turned the corner decidedly in the third quarter, with Domino’s returning to growth, driven by strong momentum in delivery and takeaway channels," said Pratik Pota, chief executive of Jubilant FoodWorks. The company had 1,314 Domino’s outlets in India at the end of December.

Formats such as delivery and takeaway grew ahead of the dine-in business. For the December quarter, sales recovery for the dine-in business stood at 41.6% of that in the year-ago period. For January, it was 56%. Recovery in dine-in business remains slow because of restrictions on seating capacity in restaurants. “On the dine-in channel specifically, the constraint is more on supply than demand. Even today, our capacity in dine-in is constrained at 50%. That is what has held back the recovery significantly," Pota said in a post-earnings conference call.

The government recently permitted multiplexes to operate at 100% capacity. The restaurant industry is awaiting similar relaxations, said Pota. “When that happens and, of course, with all covid SOPs being followed diligently…we will see dine-in demand coming back very strongly," he said.

The company opened 57 new stores, including 50 new Domino’s stores, its highest-ever in a quarter. Jubilant Foodworks had announced the closure of 100 restaurants last year.

The company is on track to open more than 100 new Domino’s stores in FY21, it said. During the quarter, the company announced the acquisition of a 10.76% stake in Barbeque Nation Hospitality Ltd, a restaurant chain.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
Get alerts on WhatsApp
My ReadsRedeem a Gift CardLogout