Jubilant FoodWorks' operating revenue rises by 14% in Q3 FY20

A total of 47 stores were opened during the quarter, 44 for Domino’s Pizza, 2 for Dunkin’ Donuts and 1 for Hong’s Kitchen.

Vaishnavi Gupta Features Writer

Jubilant FoodWorks Limited (JFL) has reported its financial results for the quarter and nine-months ended 31st December 2019.

Operating Revenues for Q3 FY20 stood at Rs 10,596 million, a growth of 14.1% over Q3 FY19. Like for Like (LFL) Sales growth for Domino’s Pizza stood at 7.2% for the quarter. Same-Store Growth (SSG) for Domino’s Pizza was 5.9%, on a high base of 14.6% last year.

Growth was driven by a strong performance in Delivery, especially online sales. Online sales now contribute to 87% of Delivery sales. The Domino’s App saw 4.1 million downloads during the quarter.

The launch of the Masala Pizza range also helped drive sales during the quarter, with the performance of the innovation significantly exceeding internal targets.

EBITDA for Q3FY20 stood at Rs 2,536 million, at 23.9% of revenue. Profit after Tax in Q3 FY20 was at Rs 1,037 million, at 9.8% of revenue.

Jubilant FoodWorks' operating revenue rises by 14% in Q3 FY20

During the quarter, the business faced significant inflationary headwinds, especially in Dairy. However, the strong focus on driving operating efficiencies ensured that the business delivered sequential improvement in operating margins.

The store opening momentum further accelerated during the quarter. A total of 47 stores were opened during the quarter, 44 for Domino’s Pizza, 2 for Dunkin’ Donuts and 1 for Hong’s Kitchen. This was the highest store opening count in 20 quarters.

Domino’s Pizza Bangladesh continued to do very well. During the quarter, the company opened its third store in Bangladesh.

Shyam S. Bhartia, Chairman, and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We have maintained strong growth momentum despite a slowdown in consumption trends. This was driven by our increased focus on the basics of the business while elevating the customer experience. We will continue to emphasize our key pillars of growth to deliver sustained growth going forward.”

Pratik Pota, CEO and Whole-time Director, Jubilant FoodWorks Limited, added, “We are pleased with the quarter’s performance. Faced with a challenging demand environment and unprecedented inflationary commodity trends, we delivered strong revenue growth of 14.1% and a sequential improvement in EBITDA margins. Underlining our belief in the potential of the Indian Food Service market, we stepped up the pace of new store expansion, opening 47 new stores during the quarter.”

Store Matrix

Domino’s Pizza
Particulars	Q3 FY20	Q3 FY19	9M FY20	9M FY19
Like-for-Like Growth*	7.2%	15.2%	6.5%	20.4%
SSG**	5.9%	14.6%	5.0%	20.0%
Network data
Restaurant at the beginning of the period	1,283	1,167	1227	1,134
New Restaurants	44	35	110	72
Closed restaurants	2	2	12	6
Restaurants at the end of the period	1,325	1,200	1325	1,200
Number of New Cities added	6	2	10	5
1325restaurants as of 31st December 2019 across 282cities
Added: 1 new state (Mizoram) and 06 new cities in Q3 FY20[Dahanu(Maharashtra), Mandya(Karnataka), Bongaigaon(Assam), Kevadia(Gujarat), Aizawl(Mizoram), Gurdaspur(Punjab)]
Online data
Particulars	Q3 FY20		Q3 FY19
OLO to Delivery Sales %	87%		73%
Mobile Ordering sales to OLO %	95%		88%
App Download Count cum. (in mn)	29.4		15.3

Dunkin’ Donuts
Network data
Particulars	Q3 FY20	Q3 FY19	9MFY20	9M FY19
Restaurant at the beginning of the period	30	32	31	37
New Restaurants	2	0	2	1
Closed restaurants	0	0	1	6
Restaurants at the end of the period	32	32	32	32
Number of New Cities added	Nil	Nil	Nil	Nil
32restaurants as of 31st December 2019 across 10 cities