NEW DELHI: Jubilant FoodWorks Ltd (JFL), which operates fast-food chains Domino’s Pizza and Dunkin’ Donuts, on Tuesday reported a 2.8 per cent y-o-y decline in consolidated profit at Rs 73.4 crore in the quarter ended September due to one-time loss of Rs 12.5 crore. Revenue, however, was up 12.2 per cent to Rs 998 crore during the quarter, compared to Rs 889 crore in the corresponding quarter last year.
With respect to one-time loss, the management said the exceptional item represented provision created against investments made by Jubilant FoodWorks Employee Provident Fund Trust in the corporate bonds of DHFL, Reliance Capital and IL&FS, and was fully provided for on account of prevailing uncertainties.
“In the face of a challenging external environment, we are glad to report that our strategy of offering value for money and superior customer experience has resulted in strong, double-digit revenue growth, along with a sequential improvement in margins,” said Shyam S Bhartia, chairman, JFL.
During the quarter, Bhartia said, forty Domino’s stores were opened and six unprofitable stores were shut to maintain healthy margins. The company plans to open 120 stores in FY20 versus initial guidance of 100 stores. Capex for the year has been set at Rs 200-250 crore.
The firm said it has been impacted due to higher input costs. There was also a slight impact of inflation (particularly in dairy). Yet, the firm was able to sail through this challenging quarter, thanks to price hikes, targeted promotions, increase in manpower productivity as investment in technology.