Jubilant FoodWorks Limited (JFL), India’s largest and fastest growing Food Service Company, reported its financial results for the quarterand year ended31 March, 2013.
Total Income at Rs. 3,658 mn, up by 29 %
EBITDA at Rs.612million, up by 17 %
Net Profit after tax at Rs. 327mn
Commenting on the performance for Q4 & FY13, Mr. Shyam S. Bhartia, Chairman and Mr. Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said,
“We are pleased to share with you JFL’s FY13 annual results. Our business strategy, which is designed to drive JFL’s competitive advantage, profitability and returns on invested capital through a unique combination of operational efficiency and expansion, bodes well for us as we grow our business base. We ended the fiscal on a positive note, in a scenario which was impacted by contracting economic activity at a macro level and restrainedconsumer spending. We witnessed a healthy increase in our topline and overall profitability led by benefits of our targeted growth initiatives and product innovation. Network expansion continued on a sustained basis for Domino’s Pizza as well as Dunkin’ Donuts.
We continued to invest in our business to support the future growth withinfrastructure like our 5thcommissary (in Mohali-Chandigarh). We believe in our future and think this is the most opportune time to drive investment. We are assured of the long term prospects and hence kept our focus on deliveringfor customers.
The strength of our results in this past year gives us added confidence that we will continue to execute our business plan well going forward. Thus, as far as we have come, we believe there is so much more that we will do to make a difference for our shareholders, customers, and business associates. In FY2014, we will continue to pursue targeted growth strategies and support our brands with increased strategic marketing and distribution platforms.”
Commenting on the performance for Q4 & FY13, Ajay Kaul, CEO, Jubilant FoodWorks Limited said, “During FY13, we continued to execute the strategies and sound business philosophies that form the cornerstone of JFL’s success and have enabled us drive growth and maintain financial and operational strength in an environment weighed down by dipping consumer discretionary spend. Nonetheless, our business objectives are clear and amongst the many plans, we have made significant progress in improving our capabilities in key areas: driving innovation, expanding our brands and strengthening our relationship with customers.
We opened 24 new stores in Q4FY13, taking our total store count to 576 as on 31st March, 2013. As a result Domino’s Pizza which spreads across 123 cities remains the company’s primary growth engine. The brand is gaining traction as we increase its presence not only in existing cities but also in new regions. This fiscal saw new innovations such as the Stuffed Garlic Bread, Taco Indiana, Cheesy Boloroni Pizza along with new exciting tastes for Pizza Mania, all of which are highly popular amongst the customers. We have successfully launched 10 Dunkin’ Donuts restaurants and we believe that we now have some important learnings to build on this initial success and plan to scale the brand in a steady manner.
We are working across our various levels of our business and markets in general to leverage JFL’s scale and advantages. We continue to strengthen our efforts, investing in people, technology, innovation and infrastructure. It is rooted in our culture to lead the change in our category and we wish to capture all opportunities to take our brands forward. On the whole we are gaining share and are well-positioned to serve the expanding needs of the business to cater to a wide audience and also deliver sustainable growth today and for many years to come.”
JFL’sOutlook - Further improvements targeted in FY 14
Grow the business
Expansion of stores and geographic presence to remain prime focus for JFL
Efforts to fortify foothold in existing markets and tapping new geographies remain strong
For FY14, the company plans to expand its Domino’s Pizza network by launching 125 new stores
After successfully opening 10 Dunkin’ Donuts restaurants, JFL remains committed to systematically take Dunkin’ across the country and plans to open 18new restaurants
Enhance strength of operations
Investment in business infrastructure to remain another key focus area. JFL plansto establishadditional commissaries in FY14to support and drive growth.
Leverage existing assets for scale
Widen menu with consistent introduction of new offerings
A key objective for the Company is to deepen customer connect with new tastes and offerings for both the brands