Sharpening Our Strategic Focus
FY 2019 was a year marked by profound political and economic changes around the world.We are pleased to report that against this challenging backdrop JFLs clear anddifferentiated strategy coupled with key initiatives that we undertook to accelerate thedelivery of long-term value to both our continuing shareholders and other keystakeholders yielded outstanding results. With every passing year we continue to add toour strengths and implement innovative measures to enrich the lives of our consumers.These efforts drive our consistent value creation efforts.
Our quality offerings and best-in-class delivery services create enriched value andexperience for our patrons. We are driving innovation in our core business to bringgreater variety and excitement to our offerings as well as to improve our operations. Bysimplifying and standardising our business processes we continue to strengthen ourbusiness focus.
ForDominosPizzainIndiaweopened102newrestaurants and closed nine thus takingour total restaurant count to 1227 restaurants across 273 cities. We continued to delightour consumers with new flavours and combinations with our World Pizza Leagueoffering that comprised 10 new flavours of pizza that celebrated the most popular flavoursfrom the worlds top cricketing nations. Launched just ahead of the busy cricketseason the range generated a lot of interest and attained popularity. The year alsowitnessed the roll-out of a new store design for Dominos to reflect a warmcontemporary personality aimed at improving the dine-in experience; going forward all newstores will feature the new look. Dunkin Donuts reported strong top line growth inFY 2019. The sharp focus on our core portfolio of donuts and beverages optimising costsand efficiencies helped break even during Q3 FY 2019. Another highlight was the launch ofour first own brand Hongs Kitchen - marking our entry into the large Chinesefood segment. It addresses the gap between Chinese food street vendors and premiumfine-dining restaurants. Our first restaurant under this brand opened in Gurugram and hasgot off to a promising start. Moreover we made a record-breaking entry into theBangladesh market with Dominos Pizza. Within its first week of operationsDominos Pizza witnessed a record number of orders from its first restaurant whichis the highest for the brand across its network in 85 countries.
We are driving innovation in our core business to bring greater variety and excitementto our offerings as well as to improve our operations. By simplifying and standardisingour business processes we continue to strengthen our business focus.
Two of our most important differentiators lending us a strong competitive advantage areour people and our culture. We believe the engagement capability and diversity of all ourpeople is the key to our successful growth.
In a consumer-driven tech-first world where food-tech companies are growing werelaunched our native app with improved functionalities such as advance ordering liveorder tracking and an improved payments interface. We are embracing digital transformationby using consumer data to improve our products and service delivery including aseamlessly digital consumer experience. The year saw greater contribution of onlineordering to overall sales at 70% driven by the all new Dominos App.
Our FY 2019 operating revenue stood at 353066.94 lakhs an increase of 18.5% over thelast year which came on the back of 16.4% SSG for Dominos Pizza the highest everin the last seven years. Our EBITDA was 60776.58 lakhs a growth of 36.2% over theprevious year with EBITDA margin at 17.2% up by 220 basis points. The Profit After Taxstood at 32280.48 lakhs with 56.4% growth over last year. The Board of Directors hasrecommended a dividend of 5.00 per equity share of 10 each fully paid up for the financialyear ended March 31 2019 subject to approval of the shareholders in the Annual GeneralMeeting.
An engaged workforce
Two of our most important differentiators lending us a strong competitive advantage areour people and our culture. We believe the engagement capability and diversity of all ourpeople is the key to our successful growth. We continue to enhance our employeeproposition to ensure a highly engaged performance-focused and fulfilled workforce thattruly reflects the diversity of the society we live in and the communities we engage with.
Our strategic focus
Owing to a number of economic demographic consumer and technology trends that areserving as strong tailwinds we believe that the market for non-homemade food will grow ona sustained basis over the upcoming years as consumers seek more and more convenience. Inthis growing market JFL is well placed to grow and lead. Our strategic focus going aheadwill be to fortress Dominos Pizza brand through high-quality products continue tooffer value for money and expand our geographical footprint. This will be augmentedthrough greater investments in technology and data science which will help in building agreat customer experience. We aspire to build a portfolio of brands across cuisines scaleup Hongs Kitchen and build a strong international business in Sri Lanka Bangladeshand beyond.
We take this opportunity to thank our partners in Dominos International andDunkin all our employees our business partners and all our other stakeholders whohave been a great partner in driving stellar results for the year. We thank you ourshareholders for your continued support trust and confidence.
|With warm regards || |
|Shyam S. Bhartia ||Hari S. Bhartia |
|Chairman & Director ||Co-Chairman & Director |