Jubilant FoodWorks tumbles after muted Q1 results

Jubilant FoodWorks was down 5.27% to Rs 1163.90 at 15:15 IST on the BSE after net profit rose 0.13% to Rs 74.77 crore on 9.94% increase in revenue from operations to Rs 940.08 crore in Q1 June 2019 over Q1 June 2018.

The result was announced during trading hours today, 24 July 2019.

Meanwhile, the S&P BSE Sensex was down by 145.05 points, or 0.38% to 37,837.69.

On the BSE, 2.32 lakh shares were traded in the counter so far compared with average daily volumes of 39,000 shares in the past two weeks. The stock had hit a high of Rs 1248.65 and a low of Rs 1115.10 so far during the day. It hit a 52-week high of Rs 1575 on 28 August 2018 and a 52-week low of Rs 982 on 26 October 2018.

Jubilant FoodWorks reported same store sales growth (SSG) of 4.1% in Domino's Pizza, on a strong base of 25.9% last year. SSG refers to the year-over-year growth in sales of restaurants opened before previous financial year.

Like for Like (LFL) sales growth i.e. sales growth of stores that were not split since 1 April 2018 came in higher at 5.8%. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.

Operating revenues stood at Rs 940.10 crore, a growth of 9.9% over Q1 June 2018. EBITDA stood at Rs 219.10 crore, at 23.3% of revenue. Q1 saw a significant increase in advertising and promotional spends as also continued investments in technology.

Commenting on the performance for Q1 June 2019, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant FoodWorks said, "We have started the year on an encouraging note. Domino's has been a very strong brand franchise and our strategic focus remains in brand building and innovation through high quality products, continued value for money, improved customer experience and an omnipresent network. Our recent launch in Bangladesh and our entry in Chinese food category through 'Hong's Kitchen' have received overwhelming response from our customers and should be long term growth drivers in the future."

Jubilant FoodWorks and its subsidiary operates Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. The company has 31 Dunkin' Donuts restaurants across 10 cities in India (as on 31 March 2019).

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