Jubilant Foodworks Q1 Net Profit Declines 74% To Rs 28.9 Crore

Jubilant Foodworks Ltd (JFL), which operates fast-food chains like Domino's Pizza and Dunkin' Donuts, on Tuesday reported a 74 per cent decline in its consolidated net profit to Rs 28.91 crore in the June 2023 quarter amid a challenging inflationary environment. 
    
The company had posted a consolidated net profit of Rs 112.58 crore in the April-June quarter previous fiscal, Jubilant Foodworks Ltd (JFL) said in a regulatory filing. 
    
However, its revenue from operations during the quarter increased 6.33 per cent to Rs 1,334.54 crore against Rs 1,255.09 crore in the year-ago period, it added. 
    
According to an earning statement from JFL, it faced "a challenging inflationary environment with key input costs holding firm" during the quarter.  
    
JFL's total expenses during the April-June quarter stood at Rs 1,248.74 crore, up 13 per cent. 
    
In the June quarter, the total income of JFL, India’s largest food service company, rose 6.17 per cent to Rs 1,343.87 crore. 
    
During the period, JFL opened 30 new stores in India, resulting in a network of 1,891 stores across all brands. 
    
It opened 23 new restaurants and closed one restaurant of Domino’s Pizza India, taking the total count to 1,838 across 394 cities as of June 30, 2023.
    
The master franchiser opened four new restaurants for US Fried Chicken brand Popeyes and the QSR brand entered two new cities – Manipal and Coimbatore - taking the tally to 17 restaurants, it added. 
    
In Hong’s Kitchen, two new stores were added, taking the total count to 15 stores 
    
While for Dunkin’, it opened one new coffee-first store and closed one also. 
    
"9 out of 21 Dunkin' stores are now as per the brand’s new Coffee-first identity," it said. 
    
JFL Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said: "Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. 
    
"We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology." 
    
Shares of Jubilant Foodworks on Tuesday settled at Rs 477.10 on BSE, up 2.23 per cent.