In the June 2023 quarter, Jubilant Foodworks Ltd (JFL), the company behind popular fast-food chains such as Domino’s Pizza and Dunkin’ Donuts, faced a formidable inflationary environment, resulting in a significant 74 percent drop in its consolidated net profit to INR 28.91 crore. According to a regulatory filing, this figure stands in stark contrast to the INR 112.58 crore consolidated net profit it achieved during the same period in the previous fiscal year.
Despite the challenging conditions, the company’s revenue from operations witnessed a positive growth of 6.33 percent during the quarter, amounting to INR 1,334.54 crore, as compared to INR 1,255.09 crore in the corresponding period of the previous year.
Jubilant Foodworks Ltd (JFL) revealed in its earnings statement that it encountered a demanding inflationary environment, with essential input costs remaining stable throughout the quarter.
During the April-June quarter, JFL’s total expenses rose by 13 percent, reaching INR 1,248.74 crore.
During the June quarter, JFL, India’s largest food service company, experienced a 6.17 percent increase in total income, amounting to INR 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.”