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Jubilant FoodWorks Q1 profit dips marginally to Rs 71.64 crore; shares fall 6% on disappointing earnings

Jubilant FoodWorks Q1 results: Revenue rose by 10 per cent to Rs 949.1 crore in Q1FY20 against Rs 863.2 crore in Q1FY19

twitter-logoBusinessToday.In | July 24, 2019 | Updated 16:53 IST
Jubilant FoodWorks Q1 profit dips marginally to Rs 71.64 crore; shares fall 6% on disappointing earnings
Jubilant FoodWorks Q1 results: The company opened 26 new Domino's stores

Jubilant FoodWorks, which operates Domino's Pizza in India, has reported a marginal decline of 0.79 per cent in its consolidated net profit at Rs 71.64 crore for the first quarter ended June 30, 2019, impacted by increase in advertising and promotional expenditure and continued investments in technology.

"The Jubilant Bhartia group company had posted a consolidated net profit of Rs 72.21 crore in the corresponding quarter last year," Jubilant FoodWorks said in a filing to the Bombay Stock Exchange.

The company's revenue rose by 10 per cent to Rs 949.1 crore in Q1FY20 against Rs 863.2 crore in Q1FY19.

On the standalone basis, the net profit grew 8 per cent YoY to Rs 74.77 crore, while operating revenue increased 9.9 per cent to Rs 940.08 crore during the April-June quarter. "This was driven by same store sales growth (SSG) of 4.1 per cent in Domino's Pizza, on a strong base of 25.9 per cent last year," the company said in the exchange filing.

The operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) for Q1 FY20 stood at Rs 219.10 crore, which constitutes 23.3 per cent of revenue.

During the quarter under review, the company opened 26 new Domino's stores, taking the total store count up to 1,249 across 276 cities.

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Commenting on Q1 results, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks said: "We have started the year on an encouraging note. Domino's has been a very strong brand franchise and our strategic focus remains in brand building and innovation through high quality products, continued value for money, improved customer experience and an omnipresent network. Our recent launch in Bangladesh and our entry in Chinese food category through "Hong's Kitchen" have received overwhelming response from our customers and should be long term growth drivers in the future."

"We are pleased with the first quarter's performance. Lapping one of our highest quarters ever from last year, we delivered near double-digit growth and strong EBITDA margins. Online sales continued to be strong and now contribute to 81 per cent of delivery sales. Our mobile app saw record downloads during the quarter. We are excited by the opportunities that lie ahead and are confident that we have right strategy to drive sustainable growth and create value," said Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks.

Reacting to Q1 numbers, shares of Jubilant FoodWorks fell 5.92 per cent to close at Rs 1,155.95 apiece on the BSE on Wednesday.

Edited by Chitranjan Kumar

Also Read: Tata Motors shares dip nearly 4% after Fitch downgrades rating

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