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Jubilant FoodWorks profit down 10% to Rs 33.6 crore in Q3

Feb 05 2014, 00:14 IST
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SummaryHigh raw material cost along with enhanced expenditure on promotions and advertising pulled down the net profit of Jubilant FoodWorks.

High raw material cost along with enhanced expenditure on promotions and advertising pulled down the net profit of Jubilant FoodWorks by 10% to Rs 33.6 crore for the third quarter ended December 31.

Total income was up 18.5% at Rs 456.6 crore in the period. However, same store growth (SSG) of the quick service restaurant firm, which runs Domino's Pizza and Dunkin' Donuts in India, declined 2.6% on the back of a tepid economic environment and consumers’ constrained discretionary budgets. SSG were up 16% in the corresponding quarter last year.

Ebitda growth in the quarter moderated to stable levels owing to a combination of inflation and decline in SSG. Margins correspondingly were lower at 14.8% compared with 17.4% in the year-ago period. “The food service industry is in flux with the shadow of macro-economic deceleration, giving us a consumer who has much less propensity to indulge in this category. A combination of inclement factors is hampering SSG but we believe this is a function of external phenomenon,” said Ajay Kaul, CEO. The firm incurred a total expenditure of R389 crore, up 22.4%.

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