Jubilant FoodWorks Q3FY19 profit up 46.2%, Dunkin' Donuts breaks even in India2 min read . Updated: 31 Jan 2019, 12:24 AM IST
- Jubilant FoodWorks reported a net profit of ₹96.5 crore for the third quarter of 2018-19 against ₹66 crore a year ago
- Revenue for the company was up 16.8% at ₹929 crore in the December quarter
New Delhi: Jubilant FoodWorks that operates the Domino’s and Dunkin’ Donuts chain of pizza and coffee shops in India on Wednesday reported a 46.2% jump in net profit at ₹96.5 crore for the third-quarter of FY19 , compared with the profit of ₹66 crore in the corresponding quarter of last year.
Revenue for the company was up 16.8% at ₹929 crore in the December quarter, the company said. Same-store sales growth, a measure of sales at stores that have been open for at least a year, was up 14.6%.
During the quarter the company also achieved a breakeven for its coffee chain Dunkin’ Donuts. Since 2017, Jubilant has been reviewing that business to pare losses. It has since brought down the number of stores from 77 to 32.
“Dunkin’ Donuts delivered breakeven in Q3 FY19 on the back of strong growth in the core portfolio of Donuts and beverages, as also disciplined cost management," said Pratik Pota, chief executive officer and whole time director, Jubilant FoodWorks Ltd.
The launch of new products such as tea helped drive sales for Dunkin’, Pota said. The company has also been leveraging the delivery network to drive growth at the fast food chain. “We plan to watch the business closely before we take a call on expansion," he said.
Ebitda (earnings before interest, tax, depreciation and amortization) for the December quarter stood at ₹170 crore, up 24.6% over Q3FY18. Overall, tight control on operating costs led to Ebitda margins improving to a seven-year high of 18.4%, Pota said.
In its earnings calls on 30 January, the company also said that it is experimenting with more cuisines, indicating the possibility that it could enter another food services category.
“We have experiments going on to look at different kind of cuisines...Chinese is certainly one of them," Pota said. “Chinese is the second-largest cuisine in the Indian market and for us, as a food business, it is an exciting one to evaluate. We do not have specific plans of getting into the market just yet," he said.
During the quarter, the company added 35 stores, its highest store addition in 11 quarters. It shuttered two outlets at the same time. In all, the company now has 1,230 restaurants in 231 Indian cities.
Jubilant’s results came in line with expectations, with same-store sales growth ahead of estimates, said Abneesh Roy, analyst at Edelweiss Securities.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.