BackJubilant FoodWorks reports Q1 profit of ₹74.8 crore
During the quarter, the company also transitioned to the new leasing accounting standardRevenue from operations for the first quarter of the financial year stood at ₹940.08 crore, up 9.9%
PremiumNew Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Wednesday reported a marginal jump in profits for the quarter ended 30 June 2019 at ₹74.8 crore, up from ₹74.67 crore it posted in the year-ago period. Revenue from operations for the first quarter of the financial year stood at ₹940.08 crore, up 9.9% from the year-ago period, the company said in a filing to the BSE.
During the quarter, the company added 26 new outlets for its Domino’s Pizza chain, taking the total store count up to 1,249 across 276 cities. Same store sales growth, a measure of sales at stores that have been open for at least a year, stood at 4.1% during the quarter, growing at a slower pace than the 25.9% growth a year ago.
EBITDA for the first quarter of FY20 stood at ₹219.1 crore. During the quarter, the company registered a significant increase in advertising and promotional spends, and continued investments in technology, the company said in a media statement. Total expenses for the quarter were up 12.2%.
“We have started the year on an encouraging note. Domino’s has been a very strong brand franchise and our strategic focus remains in brand building and innovation through high quality products, continued value for money, improved customer experience and an omnipresent network," Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant FoodWorks Ltd, said in a statement. “Our recent launch in Bangladesh and our entry in Chinese food category through ‘Hong’s Kitchen’ have received overwhelming response from our customers and should be long term growth drivers in the future."
“Lapping one of our highest quarters ever from last year, we delivered near double-digit growth and strong EBITDA margins. Online sales continued to be strong and now contribute to 81% of delivery sales," said Pratik Pota, CEO and whole time director, Jubilant FoodWorks Ltd.
During the quarter, the company also transitioned to the new leasing accounting standard, the Indian Accounting Standard 116 (Ind AS 116). As a result, “current quarter numbers are as per IND-AS 116. Consequently, operating lease expenses have changed from rent and other expenses to depreciation and amortization expenses and finance costs. The company has adopted modified retrospective approach for transition to IND-AS 116 from 1st April 2019. This approach does not require restatement of comparative information," the company said in its statement.
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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