Jubilant FoodWorks Ltd on Wednesday reported a 70 per cent decline in consolidated net profit to ₹28.54 crore in the March quarter due to elevated raw material costs amid inflationary pressures.
The company, which operates Domino’s Pizza restaurants in India and neighbouring markets, had posted net profit of ₹96 crore in the corresponding period previous fiscal. Consolidated revenue from operations in Q4 was up 8 per cent to ₹1,269.85 crore.
For the whole of FY23, consolidated net profit was down 15.56 per cent to ₹353.03 crore (₹418.09 crore). Consolidated revenue from operations was up 17.3 per cent to ₹5,158.25 crore in FY23.
On an earnings call, Sameer Khetarpal , CEO & MD, said, “While we continue to operate in a dynamic business environment, we will continue to focus on driving like-for-like growth along with identifying white spaces. We are targeting to add 200-225 restaurants in this fiscal for Domino’s along with 30-35 Popeyes stores.”
In FY23, the company added 249 net Domino’s stores and entered 56 new cities to expand the total Domino’s network to 1,816 stores across 393 cities.
“We are accelerating efforts to execute and deliver on the plans we’ve put into action to revert to high topline growth while significantly improving all aspects of our cost structure. This quarter saw encouraging progress on registering order-led growth while limiting the impact of inflation on our gross margins through a series of well-timed interventions,” he added.
The company said high inflation impacted ticket prices which affected growth in the second half of FY23. Jubilant FoodWorks’ Chairman, Shyam S Bhartia, and co-chairman, Hari S Bhartia, said the company has achieved ₹5,000-crore turnover in FY23.
“There are near-term concerns around historic high inflation and slowing market growth, but we are confident in our unique ecosystem’s ability to tap on the potential that lies ahead of us and reorient the business to deliver sustained profitable growth,” they added in the statement.
The company is the exclusive master franchise for Domino’s Pizza in India, Sri Lanka, Bangladesh and Nepal, besides having exclusive rights to develop and operate Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan.