Jubilant FoodWorks net down 18% to Rs 28 cr

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Jubilant FoodWorks that runs food chains, including Domino's Pizza and Dunkin' Donuts in India, on Thursday reported 18 per cent decline in its stand-alone net profit to Rs 28 crore for the first quarter ended June, hurt by higher expenses.

The company had posted net profit of Rs 34 crore in the same period of 2013-14, Jubilant said in a filing to BSE. Net sales during the first quarter were Rs 477 crore against Rs 396 crore in the year-ago period. Total expenses in the first quarter were Rs 440 crore against Rs 348 crore a year ago.

The increase in the total expenditure was primarily because of the inflation being higher than the same store growth, increased promotion activities, lower margin in new restaurants than system, and Dunkin' Donuts development, the company said. The total number of employees as on June 30, 2014, was 25,780, up from 21,070 on June 30, 2013, it added. Chief Executive Ajay Kaul said: "Our comprehensive approach has focused on growing our revenues while driving cost optimisation measures." The company's restaurant network for Domino's Pizza spans over 158 cities with 772 restaurants.

It has also grown the network for Dunkin' Donuts across 11 cities with 34 restaurants, he added.

On the outlook, the company said the target for launch of new Domino's Pizza restaurants is 150 in FY15. It has opened 46 new restaurants so far in the fiscal.

For Dunkin' Donuts the target is 25 new restaurants and the company has opened eight, it added.

Shares of Jubilant Foodworks Ltd were at Rs 1,198 per scrip in the afternoon trade, down 3.07 per cent from the previous close on the BSE.