Jubilant FoodWorks, operator of fast-food chains Domino's Pizza and Dunkin' Donuts, on Tuesday reported a 74 percent year-on-year (YoY) decline in its consolidated net profit at Rs 28.9 crore in the April-June quarter, missing a CNBC-TV18 poll estimate of Rs 75 crore. The company had posted a consolidated net profit of Rs 112.6 crore in the same quarter of the previous fiscal, Jubilant FoodWorks Ltd (JFL) said in a regulatory filing.

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The company's revenue from operations, meanwhile, rose 6 percent YoY to Rs 1,334.5 crore during the quarter under review, compared to Rs 1,255.09 crore in the year-ago period.

The food service company’s operating profit decreased by 9 percent YoY to Rs 275.8 crore, while the operating margin narrowed to 20.7 percent from 24.2 percent a year ago.

“Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology," said Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman, Jubilant FoodWorks.

"Our strategy of customer first and technology forward has started to yield positive results. ADS for mature stores grew by 2.7 percent sequentially, decline in ticket size was arrested, app-installs, loyalty enrolments reached a new peak, and we executed efficiently to expand EBITDA margin by 97 bps versus the previous quarter. I remain confident in our strategies and the organization's ability to overcome the slower growth phase and emerge stronger out of it," said Sameer Khetarpal, CEO and MD, Jubilant FoodWorks.

The company opened 30 new stores in India, resulting in a network of 1,891 stores across all brands. With the addition of 23 new stores and entry in one new city, Domino’s India expanded its network strength to 1,838 stores across 394 cities.

The company opened four new restaurant for Popeyes and entered two new cities – Manipal and Coimbatore - taking the network tally to 17 restaurants across four cities.

In Hong’s Kitchen, two new stores enhanced the network to 15 stores across three cities. In Dunkin’, one new coffee-first store was opened. 9 out of 21 Dunkin’ stores are now as per the brand’s new Coffee-first identity.

Shares of Jubilant FoodWorks rallied 3 percent to trade at Rs 479.45 apiece in Tuesday's late afternoon deals. The stock fell 5.24 percent on a year-to-date basis, while it tumbled 16.54 percent in the last one year.

First Published:Jul 25, 2023 2:47 PM IST