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Jubilant Foodworks profit up 58% in Sep qtr

NEW DELHI :

Jubilant Foodworks Ltd, which runs the Domino’s Pizza and Dunkin’ Donuts restaurants in India, reported a 58% jump in September quarter profit, beating analysts’ estimates, as the company benefited from a surge in delivery and takeaway orders during the pandemic.

Net profit rose to ₹121.5 crore in the three months ended 30 September from ₹76.9 crore a year earlier, the company said in a statement to exchanges on Wednesday.

Revenue from operations grew 36.6% to ₹1,100.7 crore from ₹805.5 crore in the year-ago period. Total expenditure rose 37.9% to ₹814.7 crore.

As compared to the pre-covid period of Q2FY20, Domino’s system sales grew by 11.6%. This was driven by strong momentum in delivery and takeaway channels, which grew by 36.8% and 72.2%, respectively, from a year earlier, the company said.

The company opened a record 60 new stores, including 55 Domino’s, two each of Dunkin’ and Hong’s Kitchen and one Ekdum! during the September quarter.

“Q2FY22 saw a strong all-round performance with revenue, profitability and store growth numbers hitting record highs,” Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant Foodworks, said in a joint statement.

The food-service industry is set for strong growth in the remaining quarters of the current year, the company’s management said in a post-earnings call on Wednesday.

Operating performance improved further as mobility restrictions were lifted during the quarter. The percentage of operational stores reached 95%, the company’s management said. While sales of the dine-in channel showed “encouraging” signs of recovery with orders and revenue coming through the quarter, the channel is still operating below pre-pandemic levels. Sales from takeaway and deliveries remained at elevated levels, helping the company drive strong revenue recovery, the management said.

The firm also announced key strategic investments during the quarter. “A reverse bookbuild process was launched to enhance the company’s indirect shareholding in DP Eurasia NV, the fifth largest master franchisee of Domino’s Pizza. Additionally, JFL also initiated the process of enhancing its shareholding in Jubilant Golden Harvest, Bangladesh to 90%, to strengthen its presence in the fast-growing and critical market of Bangladesh,” it added.

New investments announced during the quarter will help steer the company towards becoming a multi-brand, multi-country business, driven by tech and will create significant value for all stakeholders, Shyam S. Bhartia and Hari S. Bhartia said.

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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