Ju­bi­lant Food­Works Posts 23.5% Fall in Q4 Profit

The Economic Times - - Business Of Brands -

Ju­bi­lant Food­Works, which op­er­ates fast-food chains such as Domino’s Pizza and Dunkin Donuts in In­dia, has posted 23.5% drop in its net profit for quar­ter ended March at .` 25 crore, largely be­cause of di­min­ish­ing dis­cre­tionary spend­ing by con­sumers and higher tax outgo. The restau­rant op­er­a­tor’s same­store-sales growth for the quar­ter dropped to 3.4% from 7.7% in the year-ago quar­ter, in line with most of its con­tem­po­raries such as McDon­ald’s and Yum! Restaurants, which have been reporting lower same store sales through the past four quar­ters. “The chal­leng­ing en­vi­ron­ment we are op­er­at­ing in has im­pacted con­sump­tion ap­petite,” Shyam Bhar­tia, chair­man at Ju­bi­lant Food­Works, said in a state­ment. Bring­ing in newer con­sumers to drink Coca-Cola’s bev­er­ages has been a chal­lenge, says T Kr­ish­naku­mar, CEO at Hindustan Coca-Cola Bev­er­ages (HCCB), the Amer­i­can cola gi­ant’s bot­tling unit in In­dia. “But we have so­lu­tions too,” he told ET’s in his first me­dia in­ter­view in three years, in Ahmed­abad. Coca-Cola has de­vised sep­a­rate re­tail and dis­tri­bu­tion ap­proaches for ru­ral mar­kets, teenage con­sumers, met­ros, gro­cery chan­nel, mod­ern trade and on­line or­ders to tide over con­sumer slow­down and get back into dou­ble-digit growth, Kr­ish­naku­mar said. In Ahmed­abad, along with Coca-Cola In­dia and South West Asia pres­i­dent Venkatesh Kini, he ad­dressed over 30 global bot­tlers from the Coca-Cola sys­tem to de­scribe its ru­ral strat­egy and low-cost in­no­va­tions. HCCB, the largest bot­tling part­ner of Coca-Cola In­dia, had been grow­ing at a com­pounded an­nual rate of more than 25% in the last five years, but its unit case vol­ume growth slipped to 4% in 2013. Kr­ish­naku­mar, who is re­spon­si­ble for Coca-Cola In­dia’s con­sumer sales busi­ness worth .` 8,000 crore, also said there’s no pres­sure to push brand Coke ahead of Thums Up or Sprite. Edited ex­cerpts of the in­ter­view: Are people drink­ing lesser amount of car­bon­ated drinks? I would say that bring­ing in new, in­cre­men­tal con­sumers to con­sume our

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