Jubilant Foodworks Ltd on Wednesday reported 58.11 per cent jump in consolidated net profit at Rs 119.82 crore for the second quarter ended September 30, 2021 driven by continued strong momentum in delivery and takeaway channels.
The company, which operates popular fast food chains such as Domino’s Pizza and Dunkin’ Donuts among others in India, logged a profit of Rs 75.78 crore in the year-ago period, Jubilant Foodworks Ltd (JFL) said in a regulatory filing.
Revenue from operations in the second quarter stood at Rs 1,116.19 crore as compared to Rs 816.33 crore in the same period a year ago.
The growth in revenue from operations was “driven by continued strong momentum in delivery and takeaway channels”, it added.
Commenting on the performance, JFL Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia in a joint statement said, the second quarter saw a strong all-round performance with revenue, profitability and store growth numbers hitting record highs.
“The new investments announced during the quarter will help steer the company towards its goal of becoming a multi-brand, multi-country business driven by technology and will create significant value for all stakeholders,” they said.
During the quarter, the company had announced key strategic investments “in line with its stated goal of building a multi-brand and multi-country food business powered by technology”.
These included launching a reverse bookbuild process to enhance the company’s indirect shareholding in the Netherlands-based DP Eurasia N V, the fifth largest master franchisee of Domino’s Pizza, the company said.
Additionally, JFL said it also initiated the process of enhancing its shareholding in Jubilant Golden Harvest Ltd, Bangladesh to 90 per cent, to strengthen its presence in the fast-growing and critical market of Bangladesh.
JFL, however, said the COVID-19 situation across the countries affected the normal dine-in operations of the restaurants resulting in lower sales. Although, the group has taken various measures to protect profit margins, it said.
“Given the uncertainties associated with nature, condition and duration of COVID-19, the impact assessment on the group’s financial statements will be continuously made and provided for as required,” it added.
Total expenses in the second quarter of this fiscal year were higher at Rs 963.47 crore as compared to Rs 747.01 crore in the year-ago period.
JFL CEO and Wholetime Director Pratik Pota said,”Notwithstanding the operating challenges and inflationary headwinds, we delivered a robust topline growth, strong EBITDA margins and record new store openings.”
On the outlook, he said,”We are excited about the future and believe that we have the right strategy to lead growth in the exciting period that lies ahead.”
For the first half of the fiscal ended September 30, 2021, JFL’s consolidated net profit stood at Rs 188.89 crore as compared to Rs 1.3 crore in the year-ago period.
Consolidated revenue from operations in the first half (April-September) was at Rs 2,009.37 crore as against Rs 1,204.73 crore in the corresponding period last fiscal, the company said.