Jubilant FoodWorks Limited (JFL) today reported its financial results for the quarter and nine-months ended December 31, 2019.
Operating Revenues for Q3 FY20 stood at Rs 10,596 million, a growth of 14.1 percent over Q3 FY19. Like for Like (LFL) Sales growth for Domino’s Pizza stood at 7.2 percent for the quarter. Same Store Growth (SSG) for Domino’s Pizza was 5.9 percent, on a high base of 14.6 percent last year.
Growth was driven by a strong performance in Delivery, especially Online sales. Online sales now contribute to 87 percent of Delivery sales. The Domino’s App saw 4.1 million downloads during the quarter.
The launch of the Masala Pizza range also helped drive sales during the quarter, with the performance of the innovation significantly exceeding internal targets.
EBITDA for Q3 FY20 stood at Rs 2,536 million, at 23.9 percent of revenue. Profit after Tax in Q3 FY20 was at Rs.1,037 million, at 9.8 percent of revenue. During the quarter, the business faced significant inflationary headwinds especially in Dairy. However, the strong focus on driving operating efficiencies ensured that the business delivered a sequential improvement in operating margins.
The store opening momentum further accelerated during the quarter. A total of 47 stores were opened during the quarter – 44 for Domino’s Pizza, 2 for Dunkin’ Donuts and 1 for Hong’s Kitchen. This was the highest store opening count in 20 quarters.
Domino’s Pizza Bangladesh continued to do very well. During the quarter, the company opened its third store in Bangladesh.
Commenting on the performance for Q3 FY20, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We have maintained strong growth momentum despite slowdown in consumption trends. This was driven by our increased focus on basics of the business, while elevating the customer experience. We will continue to emphasize on our key pillars of growth to deliver sustained growth going forward.”
Commenting on the performance for Q3 FY20, Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks Limited said, “We are pleased with the quarter’s performance. Faced with a challenging demand environment and unprecedented inflationary commodity trends, we delivered a strong revenue growth of 14.1 percent and a sequential improvement in EBITDA margins. Underlining our belief in the potential of the Indian Food Service market, we stepped up the pace of new store expansion, opening 47 new stores during the quarter.”