The restaurant chain operator reported a consolidated net loss of Rs 73.9 crore in Q1 June 2020 as against net profit of Rs 71.6 crore in Q1 June 2019.
Revenue from operations tumbled 59.1% year-on-year (YoY) to Rs 388.4 crore during the quarter. EBITDA slumped 88.7% to Rs 24.6 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin stood at 6.3% as on 30 June 2020, lower than 23% in Q1 June 2019.
The company reported pre-tax loss of Rs 97.7 crore during the quarter compared with a pre-tax profit of Rs 110.8 crore in the same period last year.
The impact of COVID-19 was felt severely in Q1 FY21. The nationwide lockdown led to a complete closure of stores initially, with dine-in and takeaway remaining closed for most of the quarter. The company leveraged its supply chain network, vendor partnerships and logistics set-up to ensure uninterrupted supply of raw materials to the stores. This allowed us to reopen our stores swiftly for delivery - Domino's was amongst the fastest to reopen restaurants with over 78% of the network resuming operations by June.
Both the delivery and takeaway channels recovered fully by August and delivered a year on year growth, with the delivery channel growing at 110.9% like-for-like (LFL) and takeaway at 161.0% LFL.
Cost-optimization measures like reduction in store operating costs, rent re-negotiation, variabalizing of store manpower cost along with significant cut down of fixed and discretionary expenses helped partially mitigate the adverse impact on profitability.
During the current quarter consequential to COVID-19 pandemic, the company has negotiated several rent concessions and recognized it in statement of profit and loss. Accordingly an amount of Rs 29.66 crore related to rent concessions has been reduced from rent expense included under other expenses. The net rent savings accounted in other expenses is Rs 20.30 crore.
As on 30 June 2020, the company had healthy liquid funds equivalents to Rs 640.1 crore in the form of cash and cash equivalents, bank deposits and investments, JFL said in a statement.
Jubilant had 1,354 Domino's Pizza restaurants across 288 cities as of 30 June 2020. Domino's Pizza same store growth (SSG) contracted 61.4% in Q1 FY21 as against a growth of 4.1% in Q1 FY20. However, online ordering (OLO) to delivery sales percentage was at 99% at end of the June 2020 quarter as against 81% in the corresponding period last year.
Jubilant's Dunkin' Donuts business had 30 restaurants across 10 cities as on 30 June 2020.
Commenting on the performance for Q1FY21, Pratik Pota, CEO and whole time director, Jubilant FoodWorks (JFL), said: "I am proud of the way the entire JFL family rose to the challenge last quarter and delivered a resilient performance. Responding swiftly to the crisis, we were the first to introduce Zero Contact Delivery and amongst the fastest to resume store operations. We worked on a focused cost reduction program and used the crisis to affect structural changes - variabalization of manpower, culling of unprofitable stores and foraying into the FMCG segment with the launch of ChefBoss. Our revenue recovery in July and August was encouraging, and we had returned to growth in the Delivery and Takeaway channels by August. We are excited about the future and confident that we will emerge from this crisis stronger than ever before."
Jubilant FoodWorks jumped 4.54% to Rs 2246 on the BSE. It traded in the range of 2102.20 and 2255.05 so far during the day.
Jubilant FoodWorks is a food service company. It has the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It has exclusive rights for developing and operating Dunkin' Donuts restaurants for India. The company has entered into the Chinese cuisine segment with its first owned restaurant brand, 'Hong's Kitchen' and has 4 Hong's kitchen restaurants across 2 cities in India (as of 30 June 2020). The firm has forayed into the ready-to-cook segment with a range of sauces, gravies and pastes under the newly launched brand, 'ChefBoss'.
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