Jubilant FoodWorks FY18 Q3 profit up 231% to Rs 660 mn on revamped offering

Jubilant FoodWorks, the makers of Domino’s pizza, saw its profit rise to 231 per cent year-on-year (y-o-y) during October-December 2017. Its net profit went up to Rs 660.2 million during the period from Rs 199.7 million last year. The company's net operating revenue surged 20.7 per cent to Rs 7,952 million from Rs 6,588 million a year ago.

Increase in business was backed by higher same-store growth (SSG). Its SSG stood at 17.8 per cent in December quarter compared to -3.3 per cent in the corresponding quarter previous year.

According to Jubilant FoodWorks Chief Executive Officer Pratik Pota, a revamped offering along with everyday pricing strategy played a key role in improved its top line. “Our tight and disciplined control on costs led to a healthy margin expansion during the quarter. We are confident of driving profitable growth in the business and remain committed to executing against the strategic pillars of superior product and innovation, enhanced value, seamless customer experience, and improved technology, while bringing a strong focus on cost management”, Pota said.

During the quarter, its total expenses grew 10 per cent to Rs 6,976 million from Rs 6,329 million as Jubilant managed to keep its other expenses in check. While the cost of raw materials grew 24 per cent, other expenses went up by 6.9 per cent.

Jubilant also added two Domino’s outlets during the period, taking the total count to 1,127. However, it had to bring down the number of Dunkin’ Donuts restaurants to 44 from 52 at the end of September.

Jubilant’s stock surged 7.73 per cent on the Bombay Stock Exchange to end at Rs 2,091.55. The BSE Sensex grew 0.71 per cent.