Domino’s Pizza drives Jubilant Foodworks’ 395% net profit jump in Q4

Jubilant Foodworks Limited (JFL) today released financial results for the quarter and full year ended March, 2021.

Revenue from Operations in Q4 FY21 was at Rs 10,259 million, up by 14.3% from the previous year, while PAT (Profit After Tax) stood at Rs 1,043 million, reflecting a 395.5% rise year-on-year. This was driven by Domino’s like-for-like sales growth (adjusted for temporary restaurant closures) of 15.1% and same-store sales growth of 11.8%, the company said in its earnings statement. Domino’s witnessed continued momentum in Delivery and Takeaway channels, which grew by 28.7% and 76.9% respectively, it added.

The company opened 53 new stores during the quarter, including 50 new Domino’s stores and one new store each for Hong’s Kitchen, Ekdum! and Dunkin’ Donuts. It also acquired 32.81% equity stake in DP Eurasia N.V., an exclusive master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan and Georgia, and announced an agreement to bring Popeyes® to India, Bangladesh, Nepal and Bhutan.

For the financial year 2020-21, Revenue from Operations stood at Rs 32,689 million. EBITDA came in at Rs 7,666 million at 23.5% of revenue — up by 88 bps year-on-year. Profit after Tax stood at Rs 2,337 million at 7.1% of revenue.

Commenting on the performance for Q4 and FY21, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co- Chairman, JFL said, “We are glad to have transitioned from recovery to growth phase and concluded the fiscal year on a positive note despite unique challenges posed by the global pandemic. Our relentless focus on driving customer experience, customer and employee safety, cost management and productivity, resulted in a strong operating performance in Q4.”

Pratik Pota, CEO and Wholetime Director, Jubilant Foodworks Limited added, “We returned to growth during Q4, opened a large number of new stores, improved our operating margins and expanded our portfolio of brands. The quarter rounded off a challenging year where we were tested like never before, and I could not be more proud of the way our teams rallied around to serve our customers and our communities and to deliver an outstanding performance during the year. We are confident that our sustained investments in digital, supply chain, brand building, innovation and portfolio expansion will continue to be a source of competitive advantage for us.”

JFL’s Domino’s Pizza franchise extends across a network of 1,360 restaurants in 293 cities. The company has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. At present, it operates in India, and through its subsidiary companies in Sri Lanka and Bangladesh.

The company also has exclusive rights to develop and operate Dunkin’ Donuts restaurants in India, has in operation 24 restaurants across eight cities in India. JFL has ventured into Chinese cuisine segment with its first owned restaurant brand, ‘Hong’s Kitchen’, which serves two cities with eight restaurants in India. Recently, the Company has added Indian cuisine of biryani, kebabs, breads and more to the portfolio by launching Ekdum! which now has four restaurants in Gurugram. The company has exclusive rights to develop and operate Popeyes® restaurants in India, Bangladesh, Nepal and Bhutan. In accordance with shifting consumption habits, JFL recently forayed into the ready-to-cook segment with the ‘ChefBoss’ brand.

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