Domino's India franchisee Jubilant reports two-fold surge in Q1 profit (updated)

Jubilant FoodWorks

09/08/2024 12:02

(Adds details throughout)
       BENGALURU, Aug 9 (Reuters) - Jubilant FoodWorks
 JUBI.NS , Domino's Pizza's  DPZ.N  Indian franchisee, reported
a near two-fold surge in first-quarter profit on Friday, as
value meals attracted budget-conscious customers. 
    Consolidated net profit rose to 558 million rupees ($6.65
million) for the quarter ended June 30, from 289.2 million
rupees a year earlier, it said in an exchange filing.
    Persistently high inflation has been prompting consumers to
pare back spending on dining out or ordering in. India's retail
inflation hovered around 5% throughout the quarter amid high
food prices, increasing cost pressure on the quick-service
restaurant sector.
        To spur demand Jubilant offered value deals such as
meals for 99 rupees ($1.18), in a quarter that also coincided
with the T20 Cricket World Cup and school summer vacations. 
    Jubilant's revenue from operations rose 45% to 19.33 billion
rupees in the quarter. 
        The company's costs rose 34%, as prices of essential
ingredients such as vegetables, chicken and cheese rose. 
  
        Burger King's India operator Restaurant Brands Asia
 RESR.NS  posted a narrower first-quarter loss as offers and
discounts swayed customers. Meanwhile, rival Sapphire Foods
India  SAPI.NS  and Westlife Foodworld  WEST.NS  reported a
bigger-than-expected decline in profit amid frail demand.  
    Jubilant's shares closed 0.3% higher ahead of the results. 


($1 = 83.9250 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))