Jubilant Foodworks' consolidated net profit rose 3.82% to Rs 75.77 crore on 18.20% decrease in revenue from operations to Rs 816.32 crore in Q2 September 2020 over Q2 September 2019.
On a consolidated basis, profit before tax (PBT) skid 10.60% to Rs 100.67 crore in Q2 September 2020 as against Rs 112.61 crore in Q2 September 2019. Total tax expense for the quarter dropped 37.19% to Rs 24.89 crore as against Rs 39.63 crore in Q2 September 2019. The Q2 result was declared during market hours today, 12 November 2020.
The group decided to close 105 stores during the quarter ended 30 September 2020 (9 stores closed during the quarter ended 30 June 2020). There were 1,264 Domino's Pizza restaurants as of 30 September 2020 across 281 cities (1283 restaurants as of 30 September 2019). There were 26 Dunkin' Donuts restaurants as of 30 September 2020 across 8 cities (30 restaurants as of 30 September 2019).
On a standalone basis, the company's net profit rose 1.29% to Rs 76.91 crore on 18.49% decline in revenue from operations to Rs 805.50 crore in Q2 FY21 over Q2 FY20. EBITDA came in at Rs 214.70 crore in Q2 FY21, at 26.7% of revenue. The EBITDA margin increased by 290 bps year-on-year.
The revenue from operations grew sequentially by 111.8% in Q2 FY21. Overall system sales for Domino's recovered to 82.3% of last year's level. Within this, the delivery and takeaway channels did very well to grow by 5.8% and 49.8% year-on-year respectively. The sales momentum continued in October with revenues recovering to 96.2% of last year, driven by delivery growing by 16.3% and takeaway by 64.3%.
For Domino's Pizza, store sales growth (SSG) stood at (20)% in Q2 FY21 as against 4.9% in Q2 FY20. Like-for-Like growth (LFL) was at (18.8)% in Q2 FY21 over 6.5% in Q2 FY20.
The company's total cash and cash equivalents, bank deposits and investments increased to Rs 827.80 crore as on 30 September 2020, up from Rs 691.40 crore as on 31 March 2020.
Commenting on the Q2 FY21 performance, Shyam S. Bhartia, the chairman and Hari S. Bhartia, the co-chairman of Jubilant FoodWorks, said: "We continued to face challenges in the external environment with the increased spread of COVID-19. Despite this, our business delivered a strong all-round performance during last quarter. Revenues recovered substantially and margins improved compared to last year, underlining the inherent resilience and strength of our business model. Our consistent investment in Digital and technology is driving significant improvement in sales and customer engagement. While we expect COVID-19 to be a significant factor in the foreseeable future, we have a developed a playbook to work around it and restore the business on the path of sustainable, profitable growth."
Shares of Jubilant Foodworks gained 0.36% to Rs 2,338.85 on BSE.
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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