Jubilant FoodWorks Q3 profit rises to Rs 103 crore, revenue rises 14%

Jubilant FoodWorks, which operates Domino's Pizza and Dunkin' Donuts chain in India, has reported a 7.5 per cent growth in its standalone net profit at Rs 103.70 crore for the third quarter ended December 31, 2019, driven by rise in operating revenue "despite slowdown in consumption trends".

The Jubilant Bhartia group company had posted a net profit of Rs 96.5 crore in the same quarter last year and Rs 75.9 crore in September quarter of this fiscal.

The standalone revenue from operations rose by 14.1 per cent to Rs 1,059.6 crore in Q3FY20 as compared to Rs 929.1 crore in Q3FY19.

During the quarter under review, earnings before interest, tax, depreciation and amortization (EBITDA) jumped 48.7 per cent year-on-year to Rs 253.6 crore, which constitutes 23.9 per cent of revenue. The EBITDA margin expanded by 340 basis points (bps) to 23.9 per cent versus 18.4 per cent in the year-ago period.

The total expenses climbed by 6.3 per cent to Rs 806 crore versus Rs 758.5 crore in the year-ago period, dented by rise in raw material and personal expenses.

During the October-December quarter, Like for Like (LFL) sales growth for Domino's Pizza stood at 7.2 per cent. Same Store Growth (SSG) for Domino's Pizza was 5.9 per cent, on a high base of 14.6 per cent last year.

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"Growth was driven by a strong performance in delivery, especially online sales. Online sales now contribute to 87 per cent of delivery sales. The Domino's App saw 0.41 crore downloads during the quarter," Jubilant FoodWorks said in a filing to the Bombay Stock Exchange.

"The launch of the Masala Pizza range also helped drive sales during the quarter, with the performance of the innovation significantly exceeding internal targets, it added.

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In Q3FY20, the company opened 47 stores, 44 for Domino's Pizza, 2 for Dunkin' Donuts and 1 for Hong's Kitchen. "This was the highest store opening count in 20 quarters", the company said.

Commenting on Q3 earnings, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, "We have maintained strong growth momentum despite slowdown in consumption trends. This was driven by our increased focus on basics of the business, while elevating the customer experience. We will continue to emphasise on our key pillars of growth to deliver sustained growth going forward."

Following Q3 results, shares of Jubilant FoodWorks closed Wednesday's trade at Rs 1,755 apiece, up 0.03 per cent, on the BSE.

By Chitranjan Kumar