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Jubilant FoodWorks reports 22% profit jump in Q3 citing strong sales

Jubilant FoodWorks reports 22% profit jump in Q3 citing strong sales
Jubilant FoodWorks reports 22% profit jump in Q3 citing strong sales

Jubilant FoodWorks Ltd, operator of Dunkin Donuts and Dominos Pizza restaurant chains in India, has reported approximately 22% jump in its quarterly profit citing a tremendous surge in takeaway and delivery sales.

Net profits reportedly jumped to over ₹123.91 crores ($16.99 million) in three months that ended 31 st of December. A considerable jump from the ₹101.80 crore ($13.9 million) that was reported a year earlier. However, consolidated revenue from the operations, dropped marginally to approximately ₹1,069.27 crore ($ 146.6 million) from ₹1,071 crore ($146.8 million) owing to restrictions on seating-capacity in restaurants.

Supposedly, Dominos saw complete sales recovery through the third fiscal quarter supported by continued rise in the momentum of takeaway and delivery channels, which clocked growth of over 64.3% and 18.5%, respectively, from last year, stated the company reports.

The recovery in sales continued through January of 2021 with total Dominos sales growing by over 6%. In fact, Dominos recorded its highest-ever delivery app downloads in the fiscal quarter at approximately 7.4 million.

Jubilant FoodWorks chief executive, Pratik Pota, stated that the company has decidedly turned the corner through the third fiscal quarter, with pizza chain, Dominos, returning back to clocking in growth fueled by robust momentum in takeaway and delivery channels.

According to reports, the company had approximately 1,314 outlets of Dominos in India at the end of December 2020. Units like takeaway and delivery grew tremendously, leaving the dine-in business behind. For the fiscal quarter of December, dine-in business sales recovery stood at over 41.6% from that of last year, it was 56% for January.

Dine-in business recovery remains slow due to restrictions on restaurant seating capacities. In fact, Pota stated that on dine-in channel, specifically, there is more constraint on supply than on demand. Currently, capacity at the companys dine-in restaurants is limited at 50%. As a result, recovery has been held back substantially.

Source credit: https://www.livemint.com/companies/company-results/jubilant-foodwoorks-posts-22-jump-in-q3-net-domino-s-sees-100-sales-recovery-11612360728592.html

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