Jubilant Foodworks Ltd Q3 net profit declines by 32 pc to Rs 20 crore

Jubilant Foodworks Ltd (JFL), operator of Dominos Pizza and Dunkin Donuts chains in India, on Monday reported a 31.93 per cent decline in standalone net profit at Rs 19.97 crore for the third quarter ended December 31, 2016.
According to a PTI report, the company had posted a net profit of Rs 29.34 crore in October-December quarter a year-ago, Jubilant Foodworks said in a BSE filing. Its net sales during the period under review was up 3.94 per cent to Rs 658.75 crore as against Rs 633.76 crore in the corresponding period last fiscal, it said.
Commenting on the declined profits, chairman at JFL, Shyam S Bhartia and co-chairman Hari S Bhartia was quoted by PTI as saying: “Q3 has been a challenging quarter for the consumer sector on account of currency demonetization. However, we were able to minimize the impact by offering multiple non cash payment options to customers and launch of new products which got excellent customer response.”
Total expenses of the company during the quarter were higher at 6.76 per cent to Rs 632.90 crore as against Rs 592.77 crore in the year-ago period.
During the quarter, same store growth (SSG) decline by 3.3 per cent.
PTI also quoted CEO-cum-whole time Director at JFL Ajay Kaul as stating: “While we reported SSG of 3.3% for Q3 FY17, we feel with the strength of our brand and strong execution capabilities, we expect an improved performance once the normalcy returns.”
In FY17, JFL had targets to open around 110-115 new Domino’s Pizza restaurants and around 15 new Dunkin’ Donuts restaurants, Kaul told PTI.
And according to an investors presentation by JFL, the company has successfully been able to open 95 Domino’s Pizza and 11 Dunkin Donuts restaurants thus far.
Shares of JFL on Monday settled at Rs 1,007.20 on BSE, up 9.61 per cent from previous close, reported PTI.