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Jubilant Foodworks Posts 58 Per Cent Increase In Net Profit In Q2 Earnings Driven By Strong Delivery

The company in its filing to the Bombay Stock Exchange enumerated that the Covid-19 situation in the country affected the normal dine-in operations of its restaurants, which resulted in lower sales. It added that the company has taken several measures to protect profit margins.

Jubilant FoodWorks has recorded about 58 per cent jump in profits on the back of strong delivery and takeaway channels furthered by operational adjustments.

The Domino's Pizza and Dunkin Donuts' parent company reported earnings per share of Rs 9.11 in the second quarter compared to the Rs 5.83 reported in the year-ago period. 

Revenue rose by about 36.6 per cent to reach Rs 1100.7 crore, compared to the year-ago quarter.

The restaurant chain said the system sales grew 11.6 per cent in Q2 compared to the year-ago period. It added there was a continued thrust in delivery and takeaway channels which grew 36.8 per cent and 72.2 per cent in the quarter ending September 30. Also,  more than 7.2 million app downloads were recorded in the quarter.

The company in its filing to the Bombay Stock Exchange enumerated that the Covid-19 situation in the country affected the normal dine-in operations of its restaurants, which resulted in lower sales. It added that the company has taken several measures to protect profit margins. 

“We are pleased with our strong performance in Q2 FY22. Notwithstanding the operating challenges and inflationary headwinds, we delivered a robust topline growth, strong EBITDA margins and record new store openings. We are excited about the future and believe that we have the right strategy to lead growth in the exciting period that lies ahead," said CEO and Wholetime Director, Jubilant Foodworks, Pratik Pota. 

Additionally, the company informed that owing to the pandemic situation it has negotiated several rent concessions. 

The Dunkin Donuts' parent company further informed that it had paid the first tranche for its 25.02 per cent acquisition of stake in dietary and nutritional supplement maker Wellversed Health. The all cash-deal announced on September 23 was worth Rs 10 crores and was to take place in two tranches of Rs 6.5 crore and Rs 3.5 crore respectively. 

It said the second tranche would disburse the second tranches nine months after. 

The company stated that its total expenses during the quarter increased by about 28.8 per cent on a year-over-year basis to reach Rs 956.5 crore. 

Additionally, the company announced that it incurred an expenditure of about Rs 1.25 crore to support its employees and associates during the Covid-19 pandemic. 

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