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Jubilant Foodworks spurts after Q2 results

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Jubilant Foodworks jumped 5.22% to close at Rs 1,429.90 after consolidated net profit fell 3.41% to Rs 72.98 crore on 12.17% increase in net sales to Rs 998.05 crore in Q2 September 2019 over Q2 September 2019.

The result was announced during market hours today, 22 October 2019.

Like for Like (LFL) sales growth for Domino's Pizza stood at 6.5% for the quarter (i.e. sales growth of stores that were not spilt this FY and PY). LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.

Same Store Growth (SSG) for Domino's Pizza was 4.9%, lapping a high base of 20.5% last year. SSG refers to the year-over-year growth in sales for restaurants opened before previous financial year.

The company opened 40 new Domino's stores during the quarter, highest in the last 15 quarters, taking the total store count up to 1,283 stores across 276 cities. All these stores were based on the new store design.

Commenting on the performance for Q2 September 2019, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant FoodWorks said, "In the face of a challenging external environment, we are glad to report that our strategy of offering value for money and superior customer experience has resulted in a strong, double digit revenue growth, along with a sequential improvement in margins.We believe that the Indian Food Services industry is structurally attractive and we have the right strategy and levers in place to help us drive profitable growth."

Commenting on the performance for Q2, Pratik Pota, CEO and whole time director, Jubilant FoodWorks said, "We delivered a strong performance in Q2 with a revenue growth of 12.1% and a sequential improvement in margins. We stepped up the pace on network expansion, opening 40 new Domino's Pizza stores during the quarter, the highest in the last 15 quarters. Other emerging growth drivers such as Bangladesh and Hong's Kitchen also recorded a strong performance."

Meanwhile, the S&P BSE Sensex fell 335 points or 0.85% to end at 38,963.84.

On the BSE, 2.65 lakh shares were traded in the Jubilant Foodworks counter, compared with average daily volumes of 30,666 shares in the past two weeks. The stock hit an intraday high of Rs 1,451.80 and an intraday low of Rs 1,345.05.

The stock hit a 52-week high of Rs 1,518 on 23 September 2019. The stock hit a 52-week low of Rs 982 on 26 October 2018.

Jubilant FoodWorks is one of India's largest food service company, with a network of 1,283 Domino's Pizza restaurants across 276 cities (as of 30 September 2019). The company has the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. The company also has exclusive rights for developing and operating Dunkin' Donuts restaurants for India and has 30 Dunkin' Donuts restaurants across 10 cities in India (as of 30 September 2019).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, October 22 2019. 16:35 IST