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Jubilant FoodWorks Q1 profit up 26% to Rs23.8 crore

LiveMint logoLiveMint 17-07-2017 Sounak Mitra

New Delhi: Jubilant FoodWorks Ltd, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, on Monday said standalone profit increased 26% to Rs23.8 crore in the quarter ended 30 June from Rs18.9 crore a year earlier, backed by the best same stores-level growth at the pizza chain in two years.

Operating revenue grew 11.5% to Rs678.8 crore from Rs608.9 crore in the same period a year earlier.

Same-store sales, a measure of the revenue growth at outlets that have been open for at least a year, rose 6.5% in the quarter, which Jubilant FoodWorks said was the highest since the first quarter of fiscal 2016. Same-store sales are a key performance metric for the quick-service restaurants industry.

“Profit after tax also reflects the adverse impact of Rs90 million (Rs9 crore) on account of restaurants’ closure,” it added.

Jubilant FoodWorks also saw an improvement in overall profitability during the quarter.

Earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of operating profitability, increased 38% to Rs79.6 crore.

The Ebitda margin, at 11.7%, was the highest in eight quarters.

“We took a number of actions in the quarter towards driving innovation, delivering value and controlling costs, and we are pleased to see that our disciplined focus on driving profitable growth has begun having the desired impact. The performance strengthens our confidence in the underlying growth potential of our brands and the ability of our business model to unleash it,” Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in a statement.

Chief executive officer and whole-time director Pratik Pota said the company’s focus on delivering “better value for money” has helped deliver strong growth at Domino’s Pizza.

“We have also made significant progress towards reducing losses and building a sustainable business in Dunkin’ Donuts. Additionally, our discipline of controlling costs and driving efficiencies has helped improve overall operating margins,” he added.

In the quarter, the company added 13 Domino’s outlets and closed five, taking the total store count to 1,125. It closed nine Dunkin’ outlets and added one to bring down the total store count to 55.

In a separate statement to BSE, Jubilant FoodWorks said the company’s current president and chief financial officer Sachin Sharma had resigned. He will continue till 21 July.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks, which runs Domino’s, are closely related. There are, however, no promoter cross-holdings.

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