Jubilant FoodWorks profit upsurges with Domino’s app

Nov 13, 2020

Covid-19, staying indoors and working-from-home has given a push to Jubilant FoodWorks September quarter net profit and this was reflected in the record number of downloads of its Domino’s app. The company today reported a 3.8% jump in September quarter consolidated net profit at ₹75.7 crores.

During the quarter, the company opened ten new Domino’s stores, and will open more than 100 of them in FY21and at the same time will close 100 unprofitable ones. Jubilant holds the India franchisee for Domino’s Pizza and Dunkin’ Donuts brands.

Consolidated revenue from operations was down 18.2% to ₹816.32 crores, compared to ₹998.05 crores reported in the year-ago period. Sales were led by delivery and takeaway channels as consumers remained unsure about returning to stores to dine-in.

The sales momentum continued in October with revenues recovering to 96.2% of last year, driven by delivery growing by 16.3% and takeaway by 64.3. In all, the delivery channel grew 5.8% year-on-year during the quarter; while the takeaway channel registered a growth of 49.8% year-on-year.

Same store sales growth that refers to the year-over-year growth in sales for restaurants opened before the previous financial year was down 20% in the second quarter.

Overall system sales for Domino’s recovered to 82.3% of last year’s level, the company said as covid-related lockdown impacted operations at its outlets in June quarter.