BENGALURU (Reuters) -Jubilant FoodWorks reported a more-than-seven fold jump in quarterly profit on Wednesday as the Domino’s Pizza’s Indian franchisee booked an one-time gain and also benefited from steady demand.
Consolidated profit before exceptional items and tax of 548.6 million rupees ($6.6 million) for the fourth quarter ended March 31, from 534 million rupees a year earlier.
The company also recorded a one-off gain of 1.70 billion rupees from the adjustment to the fair value of its prior equity interest in DP Eurasia N.V. upon acquiring additional stake.
Jubilant opened 67 new Domino’s stores during the quarter, helping overall revenue rise nearly 24% to 15.73 billion rupees.
However, like-for-like sales – a key same-store sales metric – were at 0.1%, breaking a streak of four straight quarters of negative growth.
Total expenses for the quarter rose 28.2% to 15.45 billion rupees.
“The March quarter performance was remarkable as Domino’s India’s like-for-like trajectory turned around in Q4”, Jubilant said in a statement.
“This was achieved through several pre-planned
strategic interventions…further refining the value proposition through targeted delivery fee waivers during a period of weak demand,” they added.
Rival Westlife Foodworld reported a 96% decline in its profit as inflation-weary consumers cut back spending.
Shares of Jubilant closed 0.06% higher on Wednesday.
($1 = 83.2470 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)
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