Jubilant FoodWorks Limited (JFL) reported its financial results for the quarter ended 30thJune, 2019.
Operating Revenues for Q1 FY20 stood at Rs.9401 million, a growth of 9.9% over Q1FY19. This was driven by Same Store Sales Growth (SSG) of 4.1% in Domino’s Pizza, on a strong base of 25.9% last year. Like for Like Sales growth i.e. sales growth of stores that were not split since 1st April, 2018 came in higher at 5.8%.
Performance Snapshot – Q1 FY20
• Operating Revenues at Rs. 9,401 million, growth of 9.9%
• Domino’s Same Store Sales Growth (SSG) at 4.1%, on a base of 25.9% in the same period of last year
• *EBITDA at Rs. 2,191 million; EBITDA Margin at 23.3%
• **Profit After Tax at Rs. 748 million; PAT Margin at 8.0%
EBITDA for Q1 FY20 stood at Rs.2191 million, at 23.3% of revenue. Q1 saw a significant increase in advertising and promotional spends as also continued investments in technology.
Profit after tax in Q1 FY20 came in at Rs. 748 million, at 8.0% of revenue.
There were 26 new Domino’s stores opened during the quarter, taking the total store count up to 1,249 across 276 cities.
Commenting on the performance for Q1 FY20, Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said “We have started the year on an encouraging note. Domino’s has been a very strong brand franchise and our strategic focus remains in brand building and innovation through high quality products, continued value for money, improved customer experience and an omnipresent network.Our recent launch in Bangladesh and our entry in Chinese food categorythrough ‘Hong’s Kitchen’ havereceived overwhelming response from our customers and should be long term growth drivers in the future.”
Commenting on the performance for Q1FY20, Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks Limited said “We are pleased with the first quarter’s performance. Lapping one of our highest quarters ever from last year, we delivered near double-digit growth and strong EBITDA margins. Online sales continued to be strong and now contribute to 81% of delivery sales. Our mobile app saw record downloads during the quarter. We are excited by the opportunities that lie ahead and are confident that we have right strategy to drive sustainable growth and create value”
Current quarter numbers are as per IND-AS 116. Consequently, operating lease expenses have changed from rent/other expenses to depreciation and amortization expenses and finance costs.The company has adopted Modified Retrospective Approach for transition to IND-AS 116 from 1st April 2019. This approach does not require restatement of comparative information.
*EBITDA for Q1FY20 (without the impact of IND-AS 116) at Rs. 1,472 million higher by 3.6%; EBITDA Margin at 15.7%.
** Profit After Tax for Q1FY20 (without the impact of IND-AS 116) at Rs 815 million higher by 9.2%; PAT Margin at 8.7%.