Jubilant FoodWorks posts Rs 74.5 cr loss

NEW DELHI: Jubilant FoodWorks Ltd, which operates fast-food chains Domino's Pizza and Dunkin' Donuts, reported a consolidated net loss of Rs 74.47 crore for the first quarter ended June 2020, impacted by closure of stores due to COVID-19 pandemic and consequent lockdown.

The company had posted a net profit of Rs 71.48 crore in April-June quarter a year-ago, Jubilant FoodWorks Ltd (JFL) said.

Its revenue from operations declined 59.07% to Rs 388.41 crore during the quarter under review as against Rs 949.11 crore in the corresponding quarter last fiscal.

"The impact of COVID-19 was felt severely in Q1 FY21. The nationwide lockdown led to a complete closure of stores initially, with dine-in and takeaway remaining closed for most of the quarter," JFL said in a post earning statement.

JFL's total expenses fell 41.54% to Rs 499.03 crore during the quarter under review as against Rs 853.71 crore a year ago. The company enacted several measures to contain the impact of operating de-leverage.

"Cost-optimisation measures like reduction in store operating costs, rent renegotiation, variabalizing of store manpower cost along with significant cut down of fixed and discretionary expenses helped partially mitigate the adverse impact on profitability," it said.

It leveraged supply chain network, vendor partnerships and logistics set-up to ensure uninterrupted supply of raw materials to the stores. "This allowed us to reopen our stores swiftly for delivery - Domino's was amongst the fastest to reopen restaurants with over 78% of the network resuming operations by June."