Jubilant Food Q1 results: Domino’s operator reports net profit of Rs 63 cr, beats estimates; sales jump 131%

Source: Business Standard

The company’s revenue from operations saw a 131 percent surge in the quarter to Rs 879 crore as localized lockdowns did not affect business the way the national lockdown did in the year-ago quarter.

MUMBAI: Domino’s operator Jubilant Foodworks reported a net profit of Rs 62.6 crore for the quarter ended June as against a net loss of Rs 72.6 crore in the year-ago quarter despite the impact of the second wave of Covid-19 infections.

Analysts had expected the quick-service restaurant company to report a net profit of Rs 48.6 crore for the quarter.

The company’s revenue from operations saw a 131 percent surge in the quarter to Rs 879 crore as localized lockdowns did not affect business the way the national lockdown did in the year-ago quarter.

“Q1 FY22 was one of the most challenging quarters with the sudden onslaught of the second wave of the pandemic,” the company said.

The company also reported earnings before interest, tax, depreciation and amortization of Rs 211.5 crore for the quarter as against an operating loss. Jubilant Foodworks said that its EBITDA margin in the quarter was at 24.1 percent.

In terms of same-store sales growth, the company reported a growth of 114.2 percent in the quarter as against negative growth in the year-ago quarter.

During the quarter, Jubilant Food added 20 new Domino’s stores, three new Dunkin’ Donuts stores and six restaurants under its new ventures.

“A disciplined control on costs led to healthy EBITDA margins. Our business model has emerged stronger from the pandemic and we are looking ahead with optimism, confident of delivering hyper-growth and transforming into a food-tech powerhouse,” said Pratik Pota, chief executive officer and whole-time director at Jubilant Foodworks.

On Tuesday, shares of Jubilant Food ended 0.4 percent lower at Rs 3,072 on the National Stock Exchange.

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