Jubilant Foodworks, the master franchisee for Domino's Pizza and Dunkin' Donuts in the subcontinent, on Thursday reported a two-fold jump in its net profit at Rs 48.47 crore on a year-on-year basis during the July-September quarter, which was better than expected.
Jubilant Foodworks, the master franchisee for Domino’s Pizza and Dunkin’ Donuts in the subcontinent, on Thursday reported a two-fold jump in its net profit at Rs 48.47 crore on a year-on-year basis during the July-September quarter, which was better than expected. Revenues increased 9% to Rs 726.6 crore during the period. Earnings before interest, tax, depreciation and amortization (Ebitda) grew 58.9% at Rs 102.2 crore while margin was at 14.1% against 9.6% in the same period a year ago. Same store sales growth of Domino’s Pizza was at 5.5%. Total expenses increased to Rs 657.01 crore compared to Rs 637.87 crore in the same period of FY17 mainly due to an increase in input costs.
However, the company continued its efforts to reduce costs on rent, manufacturing, marketing and advertising to drive operating efficiencies, Pratik Pota, CEO of Jubilant FoodWorks, said in a conference call. He added that they will open new stores at select locations and shut down unprofitable ones. During July-September 2017, the company closed one and opened another store of Domino’s Pizza. Currently, the company runs a network of 1,126 Domino’s Pizza restaurants across 264 cities in India. Meanwhile, for Dunkin’ Donuts, the company closed 5 and opened 2 new outlets during the period. As on date, Dunkin’ Donuts has 50 stores across 12 cities. To reduce losses at Dunkin’ Donuts, the company is focussing on small-format stores and Donut-Coffee combos, which drove growth during the quarter.