Jubilant FoodWorks Limited (JFL) has reported its financial results for the quarter and half year ended September 30, 2018.
Operating revenues for Q2 FY19 were Rs 8,814 million, a growth of 21.3 percent over Q2 FY18 and a sequential growth of 3.1 percent over the previous quarter, driven by a strong same store growth (SSG) of 20.5 percent in Domino’s Pizza.
EBITDA for Q2 FY19 came in at Rs.1,475 million at 16.7 percent of revenue, a growth of 44.4 percent over Q2 FY18. Profit after Tax in Q2 FY19 was at Rs 777 million at 8.8 percent of revenue and a growth of 60.2 percent over Q2 FY18.
The strong performance in Q2 FY19 was a result of continued momentum driven by strategic initiatives taken during the recent past such as the product upgrade All New Domino’s, Every Day Value (EDV) extension to regular pizza and the continued momentum of online sales driven by the new Domino’s app.
In particular, the new Domino’s app introduced during Q1 FY19 has been liked and received strong user ratings. Features like Easy Location Selection, Automatic Re-ordering, Train Ordering, Advance Ordering and hassle free payments have been well received. Online sales were up to 68 percent of delivery sales in the quarter, with 1.7 million downloads of the new app, the highest ever.
The company stepped up the store opening momentum during the quarter, with 24 new Domino’s stores being opened, the highest in the last seven quarters.
Dunkin’ Donuts too did well with strong growth driven by donuts and beverages; its losses more than halved over last year.
Commenting on the performance for Q2 FY19, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We are pleased with our Q2 FY 19 performance. Strong growth momentum continues to be driven by successful execution of growth strategy outlined at the beginning of FY 2018. ”
Commenting on the performance for Q2 FY19, Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks Limited said, “Despite significantly increased competitive intensity, Q2FY19 was yet another strong quarter delivered by our continued focus on the basics. Growth was driven by a strong and sustained momentum in delivery orders. In particular, our digital focus showed good results with strong online sales growth, enabled by the new Domino’s app garnering strong user ratings and having a slew of innovative and user friendly features. Dunkin’ Donuts too delivered healthy growth and is moving towards profitability.”