Jubilant Foodworks Ltd that runs food chains, including Domino’s Pizza and Dunkin’ Donuts in India, today reported 18.47 per cent decline in standalone net profit at Rs. 27.72 crore for the first quarter ended June 30, hurt by higher expenses.
The company had posted net profit of Rs. 34 crore in the same period of 2013-14 fiscal, Jubilant Foodworks said in a filing to the BSE.
Net sales during Q1, 2014-15 were at Rs. 476.73 crore as against Rs. 396.42 crore in the year-ago period.
The company’s total expenses in Q1 stood at Rs. 440.17 crore as against Rs. 347.72 crore in Q1, 2013-14.
The trend in total expenditure mirrored growth in overall sales/restaurants. The increase in total expenditure was primarily because of inflation being higher than same store growth, increased promotion activities, lower margin in new restaurants than system, and Dunkin’ Donuts development, the company said.
Total number of employees as on June 30, 2014 stood at 25,780 up from 21,070 on June 30, 2013, JFL added.
Jubilant FoodWorks Ltd (JFL) CEO Ajay Kaul said: “Our comprehensive approach has focused on growing our revenues while driving cost optimisation measures. The quarter witnessed the results of our ongoing efforts to enhance consumer reach through our restaurants, our home delivery systems and via online and mobile ordering.”
The company’s restaurant network for Domino’s Pizza spans over 158 cities with 772 restaurants. It has also grown the network for Dunkin’ Donuts across 11 cities with 34 restaurants, he added.
On the outlook, the company said the target for launch of new Domino’s Pizza restaurants is 150 in FY15. It has opened 46 new restaurants so far in the fiscal.
For Dunkin’ Donuts the target is 25 new restaurants and the company has opened eight, it added.
Shares of Jubilant Foodworks Ltd closed 5.65 per cent lower at Rs. 1,169 on Thursday underperforming the Nifty which closed 0.30 per cent lower.