Jubilant FoodWorks posts 72% fall in standalone net profit

In Gujarat, Ahmedabad had ordered the most number of deliveries across tier-II cities. In Anand, pizza was found to be the most preferred dish.

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Jubilant FoodWorks on May 20 reported a nearly 72 percent year-on-year (YoY) fall in standalone net profit at Rs 21 crore for Q4FY20.

The company had reported a net profit of Rs 73.9 crore for the corresponding quarter of the previous financial year.

Revenue from operations, however, saw a slight uptick at Rs 897.9 crore in Q4FY20 in standalone terms against Rs 865.2 crore in Q4FY19.

Domino’s like-for-like (LFL) sales growth, during the quarter, fell to -2.3 percent, while same-store growth (SSG) came at -3.4 percent.

The company said it had a strong revenue performance until February ’20. In March ’20 however, there was a sharp drop in revenue due to the COVID-19 pandemic and the consequent national lockdown, which impacted the overall quarter’s performance adversely.

In Q4FY20, EBITDA stood at Rs 169.5 crore, at 18.9 percent of revenue. The EBITDA during the quarter was impacted due to lower revenues, and inflationary trends in food ingredients which were partially offset by increased productivity, the company said.

The company said it has a strong cash position, a strong balance sheet and it continues to generate healthy free cash flow.

"As on March 31, 2020, the company had liquid funds equivalents to Rs 691.4 crore in the form of cash and cash equivalents, bank deposits and investments. The company doesn’t have any debt. This has enhanced the company’s ability to meet the liquidity needs in the foreseeable future," Jubilant said.

"The coronavirus has brought about a once-in-a-lifetime crisis to society and business in general, and the restaurant industry in particular. We have taken a number of immediate steps to mitigate the impact of the virus on our business in the short term. In the longer term, we remain positive on the opportunity in the QSR space. Our strong balance sheet and the strength of our business model will ensure that we contain the adverse effects of the virus and come out stronger,” said Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks.

“Our strong run in Q4 was interrupted by the onset of coronavirus and the consequent lockdown. Our response to the crisis has been swift and comprehensive. Our focus remained on ensuring employee and customer safety even as we moved to restore operations, cut costs and conserve cash. While the pandemic will alter consumer behavior and disrupt the category, we believe that with our strong and trusted brand, proven quality and hygiene credentials, robust delivery business and growing Digital capabilities, we are uniquely positioned to emerge stronger from it,” said Pratik Pota, CEO and whole-time Director, Jubilant FoodWorks.