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Jubilant FoodWorks reports rebound in sales aided by online ordering

Jubilant FoodWorks, the parent entity of Domino’s Pizza and Dunkin Donuts in India, witnessed a recovery in online food deliveries and sales during the second quarter of this financial year. While overall sales crashed to 40.5% between April and June 2020, compared to the same period in the previous year, between July and September this year, sales recovered to 82.3% compared to last year’s level.

Revenues from operations are down by 18.2% YoY to ₹816.3 crore in Q2FY21 from ₹998.1 crore in Q2FY21. However, sequentially, revenues improved by 110% from ₹388.4 crore in Q1FY21. Net profit stood at ₹75.77 crore at the end of Q2FY21, up by 1.3% YoY from around ₹73 crore in Q2FY20. In Q1FY21, the company made a loss of ₹74.5 crore on account of sharp fall in sales in the wake of the lock-down restrictions due to the COVID-19 pandemic.

Online ordering aids sales recovery

In Q2FY21, around 99% of Domino’s Pizza sales took place online compared to 85% in Q2FY20. The share of mobile ordering as part of online ordering also increased to 98% in Q2FY21 compared to 93% in Q2FY20. The Domino’s Pizza mobile app has 43.8 million downloads as of September 2020 compared to 25.3 million in the previous year. The delivery channel registered a growth of 5.8% YoY and the takeaway channel registered a growth of 49.8% YoY, the company said in an earnings presentation.

While in July overall sales stood 69.8% of last year’s levels, this improved to 85% in August and 92% in September. In October 2020, the recovery in sales improved to 96.2% of last year’s levels the company said. Online deliveries and takeaway sales aided the growth in the company’s overall growth in sales during the quarter, while dine-in sales only recovered to 17.5% in Q2FY2 comped to last year’s levels, it said.

“We continued to face challenges in the external environment with the increased spread of Covid-19. Despite this, our business delivered a strong all-round performance during last quarter. Revenues recovered substantially and margins improved compared to last year, underlining the inherent resilience and strength of our business model,” said Shyam S Bhartia, chairman and Hari S Bhartia, co-chairman, Jubilant FoodWorks in a statement.

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“Our consistent investment in Digital and technology is driving significant improvement in sales and customer engagement. While we expect Covid to be a significant factor in the foreseeable future, we have a developed a playbook to work around it and restore the business on the path of sustainable, profitable growth,” they said.

Store closures

During the second quarter of this year, the company decided to close 105 stores which led to a loss of ₹16.74 crore in terms of depreciation. The company has closed a total of 124 stores since April, amounting to a total loss ₹20.88 crore for the six month period towards de-recognition of right of use assets and lease liabilities.

The company has closed 105 Dominos’ Pizza stores in the April to September period of this year, compared to just 10 last year; it closed nine Dunkin’ Donuts stores this year, compared to just one last year.

The company added 34 new Domino’s Pizza stores, 10 of which were opened in Q2FY21, and 1 new Dunkin’ Donut store between April to September 2020. As of September 2020, the company has 1,264 Dominas Pizza stores, compared to 1,283 in the previous year, and 26 Dunkin’ Stores, compared to 30 in the previous year. The company plans to open a total of 100 new Domino’s Pizza stores in FY21, it said.

Download: Financials | Release | Presentation

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