Jubilant FoodWorks, which owns Domino’s pizza franchise in India, on Tuesday posted fiscal first quarter profit at Rs 28.92 crore, down 74.4 per cent as compared to Rs 112.75 crore during the first quarter of FY23, missing estimates. It posted revenue from operations at Rs 1334.54 crore, up 6.3 per cent in comparison to Rs 1255.10 crore during the same period last year. “The growth was driven by Domino’s Delivery channel sales which increased by 8.4 per cent. The ADS of mature stores, came in at Rs 81,049. Domino’s LFL came in at -1.3 per cent,” it said in a regulatory filing. The company EBITDA stood at Rs 275.8 crore. According to CNBC TV18 estimates, Jubilant FoodWorks was expected to post a profit of Rs 75 crore and revenue at Rs 1312 crore during the first quarter of FY24.
The company posted total income for the quarter at Rs 1343.88 crore, up 6.2 per cent in comparison to Rs 1265.76 crore a year earlier. However, total expenses during the quarter stood at Rs 1248.74 crore, up 13 per cent from Rs 1104.95 crore in the corresponding quarter of last year.
“Our strategy of customer first and technology forward has started to yield positive results. I remain confident in our strategies and the organization’s ability to overcome the slower growth phase and emerge stronger out of it,” said Sameer Khetarpal, CEO and MD, Jubilant FoodWorks.
Jubilant FoodWorks’ expansion strategies
Jubilant FoodWorks opened 30 new stores in India during the quarter, taking the total count to 1,891 stores across all brands. “With the addition of 23 new stores and entry in one new city, Domino’s India expanded its network strength to 1,838 stores across 394 cities,” it said. For its Popeyes brand, Jubilant opened four new restaurants and entered two new cities – Manipal and Coimbatore – taking the network tally to 17 restaurants across four cities. In Hong’s Kitchen, two new store additions took the network tally to 15 stores across three cities. In Dunkin’, one new coffee-first store was opened. 9 out of 21 Dunkin’ stores are now as per the brand’s new Coffee-first identity. During the quarter, the Company also introduced Domino’s Red Hot Spicy Pizza range.
Meanwhile, the enrollment to loyalty program – Domino’s Cheesy Rewards – grew by 23.5 per cent during Q1FY24 versus the prior quarter to 16.8 million and the loyalty order contribution reached 48 per cent in June 2023. Consumer engagement remained elevated with all time-high quarterly app downloads at 10.0 million, up by 22.0 per cent and MAU (App) came in at 10.3 million, the company said. While the delivery channel revenue during the quarter went up by 8.4 per cent on-year, the growth was order led, partially offset by decline in ticket. The dine-in channel revenue remained flat.
“Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology,” said Shyam S Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks.
Furthermore, in Sri Lanka, Jubilant FoodWorks said that the system sales growth was 13.1 per cent the Company opened two new stores taking the network strength to 50 stores. It introduced Domino’s Roasties in the country. In Bangladesh, system sales grew by 69.6 per cent and the network expanded to 20 stores. The Company introduced Choco Breadstick as the new offering.