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  1. Jubilant Foodworks posts 230% rise in Q3 profit

Jubilant Foodworks posts 230% rise in Q3 profit

Jubilant Foodworks, the company behind Domino’s Pizza and Dunkin Donuts, posted a strong 230% year-on-year increase in net profit for the quarter ended December 31, 2017, to Rs 66 crore.

By: | Mumbai | Published: January 20, 2018 5:09 AM
Jubilant Foodworks, Domino, Domino Pizza, Domino Pizza stores, Dunkin Donuts stores, Jubilant Foodworks shares, Ebidta, BSE The company’s continued focus on profitability saw it shutting down one Dominos Pizza store and nine Dunking Donuts stores in Q3FY18.

Jubilant Foodworks, the company behind Domino’s Pizza and Dunkin Donuts, posted a strong 230% year-on-year increase in net profit for the quarter ended December 31, 2017, to Rs 66 crore. The company’s continued focus on profitability saw it shutting down one Dominos Pizza store and nine Dunking Donuts stores in Q3FY18. Over the past nine months, the company has shut 9 Domino’s Pizza stores and 23 Dunkin Donuts stores. Following this, the company now operates 1,128 Domino’s Pizza outlets across 265 cities and 43 Dunkin Donuts stores in 12 cities. Pratik Pota, chief executive officer, Jubilant Foodworks, said at a post-earnings conference call, “Focus on closing the loss-making stores and reduction in overall operational costs has helped the company improve profitability.” Sales grew 20.7% y-o-y in Q3 to Rs 795 crore, driven by strong growth in Domino’s Pizza’s performance, which reaped the benefits of product upgrades offering a better value proposition, Pota said. The company’s Ebitda margins rose sharply to 17.2% in Q3FY18 from 9.7% in Q3FY17. The company’s Ebidta in the Q3 grew 113.7% to Rs 136.8 crore.

The same-store sales growth, a key metric to gauge business profitability of retail businesses, grew 17.8% in the quarter vis-a-vis a decline of 3.3% in the corresponding quarter of 2016. “Sharp focus on the consumer, through a significantly improved product and everyday value pricing led to a robust same-store sales growth. Tight control on costs led to healthy margin expansion during the quarter,” Pota added. Shares of the company on Friday closed at Rs 2,091.55 on the BSE, gaining 7.7%, following the robust performance.

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