Jubilant FoodWorks, the operator of Domino’s Pizza in India, reported a rise in first-quarter profit on Thursday, helped by steady sales growth at its core Domino’s business and continued store expansion across the country.
The stock, which was trading in the red since today’s opening bell, swung to green on the announcement, closing 1.41 per cent higher at ₹491.55 apiece on the NSE.
Standalone revenue from operations rose 9.2 per cent year-on-year to ₹1,848.9 crore for the quarter, thanks to Domino’s same-store sales growth and continued outlet expansion.
However, profit from continuing ops slipped 1 per cent to ₹72.8 crore on higher employee costs, depreciation and other expenses eating into the additional revenue.
Quick-service restaurant chains in India have been battling input cost pressures alongside gradually improving consumer demand, especially the ones outside large metro cities.
After accounting for a loss from discontinued Dunkin’ brand operations, the company’s overall standalone profit for the period rose to ₹69.6 crore vs ₹66.7 crore a year ago.
The Dunkin’ brand, whose India rights the company chose not to renew, saw its net loss shrink to ₹3.2 crore for the quarter from the staggering ₹6.8 crore loss last year.
