Jubilant FoodWorks profit down 71.5% in Q4

Jubilant_FoodWorks

New Delhi: Jubilant FoodWorks Ltd—which operates the Domino’s and Dunkin’ Donuts chain of pizza and coffee shops in India—posted a 71.5% drop in fourth quarter standalone net profit at ?21 crore, the company said in a statement on Wednesday. In the year ago period, the company posted a net profit of 73.94 crore.

Standalone revenue from operations stood at Rs897.85 crore in the quarter ended 31 March, up 3.77% from the year ago period when the company posted ?865.19 crore.

Domino’s same store growth (SSG)—that refers to the year-over-year growth in sales for restaurants opened before previous financial year—was down 3.4% after registering a 6% growth in the same quarter last year.

“The company had a strong revenue performance until February ’20 with like-for-like growths in January’20 being 8.4% (SSG 7.2%) and in February’2014.9% (SSG 13.1%). In March’20 however, there was a sharp drop in revenue due toCOVID-19pandemic and the consequent national lockdown, which impacted the overall quarter’s performance adversely,” the company said in a statement to the press.

The company’s results come as the restaurant industry was battered by the country-wide lockdowns that restricted store operations. Several companies continued to keep their online deliveries intact wherever permissible.

“The coronavirus has brought about a once-in-a-lifetime crisis to society and business in general, and the restaurant industry in particular. We have taken a number of immediate steps to mitigate the impact of the virus on our business in the short term. In the longer term, we remain positive on the opportunity in the QSR space. Our strong balance sheet and the strength of our business model will ensure that we contain the adverse effects of the virus and come out stronger,” Shyam S. Bhartia, Chairman and Hari S. Bhartia, co-chairman, Jubilant FoodWorks Limited said in the statement.

As of 31 March, 2020, the company had 1,335 restaurants across 282cities. During the quarter the company added 13 new Domino’s restaurants.

The company rolled out its ‘Zero Contact Delivery’ keeping in mind the covid-19 pandemic.

“Our strong run in Q4 was interrupted by the onset of Coronavirus and the consequent lockdown,” Pratik Pota, CEO and whole-time director, Jubilant FoodWorks Limited said. “While the pandemic will alter consumer behavior and disrupt the category, we believe that with our strong and trusted brand, proven quality and hygiene credentials, a robust delivery business and growing Digital capabilities, we are uniquely positioned to emerge stronger from it,” he added.

The company’s delivery operations have improved their reach over due course; even as dine-in operations remain suspended.

“Jubilant is among the fastest to reopen among food brands—with 938 stores operational as of now,” Abneesh Roy, executive vice president (research), Edelweiss Securities said commenting on the company’s quarterly performance.

The business is seeing full recovery on the delivery part of the business, especially in smaller towns, he added.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are closely related. There are, however, no promoter cross-holdings.

News Source: livemint

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