Pizza maker Domino’s parent company Jubilant FoodWorks Limited posted strong earnings in Q3FY20 and the company said that its performance was largely on the back of online food delivery.
Pizza maker Domino’s parent company Jubilant FoodWorks Limited posted strong earnings in Q3FY20 and the company said that its performance was largely on the back of online food delivery. “Growth was driven by a strong performance in delivery, especially online sales. Online sales now contribute to 87% of delivery sales,” the company said. Further, the company had also launched Masala Pizza range this quarter which also drove sales for Jubilant FoodWorks Ltd. “The performance of the innovation significantly exceeded internal targets,” the company added. Jubilant FoodWorks added 44 new Domino’s Pizza stores, 2 Dunkin’ Donuts and 1 Hong’s Kitchen outlets to the network.
“We have maintained strong growth momentum despite slowdown in consumption trends. This was driven by our increased focus on basics of the business, while elevating the customer experience,” Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said in a statement on Wednesday.
Major takeaways from Q3FY20 earnings
- Jubilant FoodWorks Ltd’s operational revenue stood at Rs 10,596 million; witnessing a growth of double-digit 14.1%.
- Domino’s Like-for-Like (LFL) Sales increased by 7.2% while Same-Store Growth (SSG) at rose by 5.9%, on a base of 14.6% last year.
- Jubilant FoodWorks Ltd.’s EBITDA stood at Rs 2,536 million while EBITDA Margin was at 23.9%.
- The company reported Profit After Tax at Rs 1,037 million. PAT Margin stood at 9.8%.
- Domino’s store expansion in Q3 was the highest in 20 quarters or five years.
- The company faced headwinds of inflation especially in Dairy.
- Domino’s Pizza is also performing well in Bangladesh and the company opened its third store there.
Meanwhile, the fast-food business in India is flourishing and Jubilant FoodWorks is the most attractive franchise among fast-food joints, according to a report. “The company has got stronger unit economics, better profitability and ability to invest for growth than its peers. Cost comparison indicates Jubilant’s margins have scope to expand further,” research and investment firm Emkay said in a report earlier.