Jubilant FoodWorks Q2 profit slips 2% to Rs 76 crore, revenue rises 12%

Jubilant FoodWorks, which operates Domino's Pizza and Dunkin' Donuts chain in India, has reported a marginal decline of 2.2 per cent in its net profit at Rs 75.9 crore for the second quarter ended September 30, 2019, impacted by one-time loss of Rs 12.5 crore.

"The Jubilant Bhartia group company had posted a net profit of Rs 77.7 crore in the corresponding quarter last year," Jubilant FoodWorks said in a filing to the Bombay Stock Exchange.

The revenue from operations surged by 12.1 per cent to Rs 988.20 crore in Q2FY20 as against Rs 881.40 crore in Q2FY19.

The operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) for July-September period jumped 59.3 per cent year-on-year to Rs 235 crore, which constitutes 23.8 per cent of revenue. The EBITDA margin climbed to 23.8 per cent from 16.7 per cent in the same quarter last year.

The total expenses of the company increased by 2.6 per cent to Rs 753.20 crore versus Rs 733.80 crore in the year-ago period.

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During the quarter under review, the company opened 40 new Domino's stores, highest in the last 15 quarters, taking the total store count up to 1,283 stores across 276 cities. Same-store sales growth stood at 4.9 percent as compared to 20.5 per cent in the same period last year.

Domino's Pizza Bangladesh also continued to perform well. The company opened another store in Bangladesh.

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Commenting on the financial performance, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, "In the face of a challenging external environment, we are glad to report that our strategy of offering value for money and superior customer experience has resulted in a strong, double digit revenue growth, along with a sequential improvement in margins."

"We believe that the Indian Food Services industry is structurally attractive and we have the right strategy and levers in place to help us drive profitable growth," he added.

Shares of Jubilant FoodWorks closed trade at Rs 1,429.90 apiece, up 5.22 per cent, on the BSE on Tuesday.

Edited by Chitranjan Kumar