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Home >Companies >Company Results >Jubilant reports 69.06 cr profit in Q1FY22

Jubilant Foodworks Ltd. (JFL), the operator of Domino’s Pizza and Dunkin’ Donuts restaurants in India, swung to a consolidated net profit of 69.06 crore in the first quarter of the ongoing fiscal year (Q1FY22), from a year-ago loss, thanks to a sharp increase in revenue.

The company, which also operates Hong’s Kitchen and Ekdum! chain of restaurants, recorded a net loss of 74.47 crore in the year-ago quarter.

Consolidated revenue from operations more than doubled to 893.18 crore in the three months ended 30 June from 388.41 crore a year earlier. This was helped by growth in Domino’s delivery channel, which offset the impact of covid-related curbs on dining-in and takeaway channels during the quarter. Jubilant Foodworks plans to add 150-175 outlets of Domino’s Pizza this fiscal in a bid to tap the market demand.

“Domino’s will continue to power ahead and we see a clear potential of 3,000 stores in India, in the medium-to-long term for the brand," Pratik Pota, chief executive officer and whole-time director, Jubilant Foodworks said, during a post-earnings call with analysts. The company had announced shutting down more than 100 Domino’s Pizza outlets in the September quarter last year.

Jubilant Foodworks will also invest in expanding its other brands, including Hong’s Kitchen and Popeyes as the food services company sees significant structural changes in the eating out market in the future. This is especially true as the category is seeing greater digitization with accelerated consumer adoption of online ordering.

The June quarter was marked by a more severe wave of covid-19 infections that forced states to impose localised restrictions. Dine-in was restricted, too, with only delivery and takeaways allowed.

“Growth during the quarter was driven by Domino’s like-for-like (LFL) sales growth of 120.4% and same store sales growth (SSSG) of 114.2%. The growth in delivery channel, which grew by 123.7%, mitigated the impact on account of dine-in channel being shut for a long time and mobility curbs impacting the takeaway channel," Jubilant Foodworks said in its earnings statement.

LFL sales refers to year-on-year growth in sales of non-split restaurants opened before the previous financial year, while SSSG refers to year-on-year growth in sales for restaurants opened before the previous fiscal year.

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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