Jubilant FoodWorks Limited (JFL) has reported strong financial results for the second quarter ended September 30, 2017.
The brand has reported operating revenues for Q2FY 18 were Rs 7,266 million, a growth of 9.2 per cent over Q2FY17. Sequential revenues vs. Q1 FY18 grew by a strong 7 per cent. This was driven by a strong 5.5 per cent same store growth (SSG) in Domino’s Pizza, lapping the fastest growth quarter from last year of Q2 FY17.
Overall profitability also saw significant improvement with EBITDA for Q2 FY18 coming in at Rs 1,022 million at 14.1 per cent of revenue, and a growth of 59.0 per cent over Q2 FY17. The EBITDA margin was the highest in the last fourteen quarters.
Profit after Tax in Q2 stood at Rs 485 million at 6.7 per cent of revenue, and a growth of 124.7 percent over Q2FY17. This was the highest PAT margin since Q3FY14.
The key highlights of the quarter’s performance were Q2 FY18 saw the rollout of GST and JFL ensured that all benefits resulting from this were passed on to consumers across the country, upgraded Domino’s App with improved functionalities, leading to a strong growth in online ordering, disciplined Cost management across all fixed cost lines and reduction in DD losses continues.
Commenting on the performance for Q2 FY18, Chairman Shyam S Bhartia, and Co-Chairman, Jubilant FoodWorks Limited, Hari S. Bhartia said, “A combination of mid-single digit same store sales growth and disciplined cost management led to another solid performance in Q2 FY18. We made good progress towards our goals during the quarter in both Domino’s Pizza and Dunkin’ Donuts. The performance strengthens our conviction in the strategy for growth unveiled earlier in the year, and reinforces our belief in the potential for the JFL business in the time ahead. We are happy to state that the new GST regime was implemented very smoothly in the company and we quickly passed on the net benefit to all the consumers across the country”.
Commenting on the performance for Q2 FY18, CEO and Whole time Director, Jubilant FoodWorks Limited, Pratik Pota said, “At the beginning of the year, we had unveiled our new strategy for driving profitable growth. As part of this, we reinvested the GST savings accrued to the company in significantly upgrading the Domino’s pizza product. I am pleased to share that this, along with our other initiatives, helped us deliver a strong performance on Domino’s in Q2FY18. Dunkin’ Donuts too made significant progress towards the stated objective of halving losses this year. Additionally, our discipline of controlling costs and driving efficiencies helped improve overall operating margins. Going forward, we will continue to drive the strategic pillars of Superior Product and Innovation, Enhanced Value, Seamless Customer Experience, and Improved Technology, while bringing a razor sharp focus on cost management. We are excited about the growth potential in the food category and are looking forward to driving profitable growth for our business.”