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Business News/ Companies / Company Results/  Jubilant FoodWorks’ Q3 profit slips 18%
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Jubilant FoodWorks’ Q3 profit slips 18%

Jubilant FoodWorks Ltd's Ebitda for the quarter was ₹280 crore, a decrease of 2.2%. The company reported sustained growth in delivery, highest ticket in nine quarters, and cost optimization for investments behind category development.

Revenue growth was driven by Domino’s delivery channel sales which increased by 6.2%. Growth in delivery was partially offset by decline in dine-in, the company said.Premium
Revenue growth was driven by Domino’s delivery channel sales which increased by 6.2%. Growth in delivery was partially offset by decline in dine-in, the company said.

New Delhi: Jubilant FoodWorks Ltd on Wednesday reported a 18.2% dip in consolidated net profit for the three months ended 31 December.

Profit for the period stood at 65.7 crore; the company that operates Domino’s restaurants in India had reported a profit of 80 crore in the year-ago period. Meanwhile, revenue from operations grew 3.47% to 1,378.11 crore against 1,331.81 crore reported in the year-ago period.

Revenue growth was driven by Domino’s delivery channel sales which increased by 6.2%. Growth in delivery was partially offset by decline in dine-in, the company said.

Like-for-like sales growth for Domino’s was down 2.9% largely impacted by dine-in. The company reported the highest ticket in the last nine quarters organically—without taking a price increase since the last six quarters.

“A series of proactive, strategic decisions being taken on a continual basis is helping us navigate the muted demand environment well. The successful creation of a dedicated spending pool via Project Vijay for pizza category development, sharpening our on-ground executional capabilities, accelerated expansion of Popeyes network, and the continual reinforcement of our competitive strengths in delivery, technology, and supply chain are all key elements that will reignite the growth engine for our India business. The accretive DP Eurasia acquisition marks a new chapter of utilizing Domino’s experience to aid their business and also in the process create additional value for our shareholders," Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Ltd said.

With the addition of 40 new stores and entry in 10 new cities, Domino’s India expanded its network to 1,928 stores across 407 cities. The company stepped up the pace of network expansion in Popeyes with the opening of 10 new restaurants and entry in four new cities—Mysuru, Mangaluru, Kadalur and Mohali—taking the network tally to 32 restaurants (Popeyes) across 10 cities. In Hong’s Kitchen, four new stores and entry in one new city enhanced the network to 22 stores across four cities.

In Dunkin’, four new stores were opened with an entry in Lucknow, thereby serving Dunkin through 25 stores across eight cities.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) for the quarter was at 280 crore falling by 2.2%.

“Sustained delivery growth, highest ticket in nine quarters without a price increase since last six quarters, adept cost optimization making way for investments behind category development, and the accelerated expansion of Popeyes as an additional growth driver were the distinctive highlights from our quarter. The commissioning of Jubilant Food Park Bengaluru significantly elevates our operational capabilities, in-house integration with ONDC demonstrates our digital prowess and acquisition of majority stake in DP Eurasia unlocks a renewed, profitable growth trajectory," said Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant FoodWorks Ltd.

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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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 31 Jan 2024, 11:08 PM IST
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