It is a real pleasure to report on a year of transformationalperformance by your Company in what was a passive external environment for the food andservice industry. Our success can be attributed largely to our relentless focus onexecuting the strategic blueprint we had outlined at the beginning of FY 2018. Profitablegrowth which enhances our productivity and efficiency is the foundation of our strategyand aligned to this solid approach we strengthened the fundamentals of our business. Ourpriority to focus on the most important are as of our business driving innovationsand product quality delivering better value for money products seamless customerexperience leveraging technology and improved efficiencies across all parts of ouroperations came together favourably to steer growth. We are delighted to share thatwe continue to make good progress on our stated objective of halving our losses forDunkin' Donuts.
FY 2018 will be etched as a seminal year in the Indian calendar withthe implementation of the progressive legislation of Goods and Services Tax (GST)arguably the biggest tax reform since independence and awaited since more than a decade.We believe the 5% GST rate without input tax credit will be a significant growth driverfor the organised restaurant industry and we welcome the positive step taken by thegovernment to make eating out and ordering food at home much more affordable forconsumers.
Our turnaround and the strength of our business model are amply evidentin our full-year results as compared to the previous year results. Operating revenue forFY 2018 stood at Rs 29804 Million up by 17.1%. Ongoing focus on operational excellenceenabled us to achieve stellar margin expansion. EBITDA for the year stood at Rs 4464Million up by 81% while Profit after Tax stood at Rs 2064 Million growing by 206.9%.
"The launch of All New Domino's' - acomprehensive upgrade of our pizza quality - was among the most important development inthis regard."
Our conviction that our business is stronger than ever before and isnow primed for an even higher growth trajectory is based on the robust sequential growthrecorded by Domino's Pizza India (DPI). Same-Restaurant Sales Growth (SSG) for DPIfor FY 2018 stood at 13.9% with Q4FY2018 leading to a six-year high at 26.5%. SSG is acrucial metric of success in our industry and our robust revival indicates that ourRestaurants are attracting existing customers to come back more frequently and spend moreas well as encouraging new customers to experience our services.
Steered by our robust financial results and the continued confidence inthe long-term future of our business the Board recommended issue of bonus shares to theholders of equity shares of the Company in the proportion of 1 (One) equity share of Rs10/- each fully paid up for every 1 (One) equity share of Rs 10/- each fully paid up.Further Board is delighted to recommend a dividend of Rs 5/- per equity share of Rs 10/-each for the financial year ended March 31 2018 subject to the approval of theshareholders in the ensuing Annual General Meeting of the Company. The above referreddividend is recommended on the basis of the existing paid-up share capital of the Company(pre bonus share capital). Upon approval of issuance of bonus shares the dividend payout(post bonus issue) will work out to Rs 2.50/- per equity share of Rs 10/- each.
Our customers are at the heart of everything we do. An essentialelement of our growth strategy was delivering better value proposition to this mostimportant audience. The launch of All New Domino's' a comprehensiveupgrade of our pizza quality was among the most important development in thisregard. The rollout of Every Day Value' for Domino's Pizza wherecustomers are offered a standard affordable price every day was another significant steptowards enhancing the customer experience. Dunkin' Donuts too improved its valueproposition with the launch of donuts at lower price points and quality coffee atreasonable prices. Migrating successfully to the new tax regime we also passed on the GSTbenefits to our customers.
Our laser-sharp focus on cost rationalisation and productivity led usto assess simplify and streamline our operations even further. Manpower optimisationclosing down of non-viable Restaurants and implementation of advanced technology in ourbusiness enabled us to realise significant financial benefits.
Investments in technology infrastructure continue to be central to ourcommitment to delivering seamlesscustomer experience and robust growth. A Digital Team wascreated in the year to spearhead the digital thrust of the Company. By upgrading digitalassets driving data analytics developing Restaurant technology and strengthening digitalmarketing we will leverage the potential of digital technology to transform everydimension of our business.
Through the pursuit of greater customer-centricity and efficiencygains we maintained our drive to improve our performance for the Sri Lanka operations ofthe Domino's Pizza brand. In a significant step in the Company's journey forinternational expansion we entered into a joint venture with Golden Harvest QSR Ltd. tolaunch Domino's Pizza in Bangladesh. As one of the fastest growing economiesBangladesh offers huge potential for Domino's Pizza. We are confident that our domainexpertise of over two decades combined with local insights from our joint venture partnerwill enable us to capitalise on the attractive business opportunity.
Our outstanding performance would not have been possible without thehard work and dedication of all of our employees and the Board would like to express itssincere thanks for their considerable efforts. We continue to embed leading HR practicesto nurture and empower our people. The concept of JFL University was launched in the yearto support Learning & Development initiatives for our employees.
Continuing to act on multiple fronts of innovation and product qualityvalue-for-money customer experience and technology we remain focussed to deliversustained and profitable growth. We look to the future with confidence as we believe wehave the right strategy and fundamentals in place.
Thank you for your investment and trust in our Company.
With warm regards
|Shyam S. Bhartia || |
Hari S. Bhartia
|Chairman & Director || |
Co-Chairman & Director