Jubilant FoodWorks Q1 Results: Profit drops 26% YoY to Rs 75 crore

economictimes.indiatimes.com:

Jubilant FoodWorks, which owns Domino’s pizza franchise in India and a few other countries, on Tuesday reported a 25.5% year-on-year (YoY) drop in its standalone June quarter profit at Rs 75.2 crore but its EBITDA margin improved 97 bps sequentially. During the quarter, the pizza-seller reported a 5.6% YoY rise in its revenue to Rs 1,309.7 crore. Its profit after tax (PAT) margin improved by 195 bps sequentially to 5.7% while EBITDA margin came in at 21.1%, higher by 97 bps sequentially.

The growth was driven by Domino’s Delivery channel sales which increased by 8.4%. The average daily sales of mature stores, came in at Rs 81,049, up by 2.7% sequentially. The Domino’s LFL (like for like) growth came in at -1.3%.

In a challenging inflationary environment with key input costs holding firm, Jubilant said it was able to expand its operating margins sequentially on account of higher productivity led-cost optimization initiatives. «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 Jubilant Chairman Shyam Bhartia.

The company opened 30 new stores in India, resulting in a network of 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. The company opened four new restaurant for Popeyes and entered two new cities – Manipal and Coimbatore — taking the network tally to 17