(Reuters) -India’s Jubilant FoodWorks reported a rise in fourth-quarter profit on Wednesday as the Domino’s Pizza franchisee benefited from strong online sales and new store additions.
It reported a profit before tax and exceptional items of 695.20 million rupees ($8.15 million) for the January-to-March quarter, up from 548.61 million rupees a year earlier.
The company reported a 12% year-on-year rise in like-for-like sales – or sales at stores which were open for at least a year – a sharp increase from the 0.1% growth reported a year earlier.
The boost came as Jubilant focused more on online sales, offering discounts on third-party platforms, and waived delivery fees on app orders.
Jubilant said it opened 52 new Domino’s outlets in India during the quarter, bringing the total count to 2,179, which helped lift its overall revenue by 33.6% to 21.03 billion rupees.
Its sales growth for the March quarter outpaced rival Sapphire Foods, which operates Pizza Hut restaurants in India, as it gave away a drink and two sides with pizzas in a “super sale” offer.
India’s fast-food sector is cooling as budget-conscious customers are cutting back on spending amid high living costs and slow wage growth, with franchisees relying on discounts to stay competitive in a crowded market.
Analysts believe that Jubilant’s investments in 20-minute in-house delivery and app-led orders are helping it reduce its reliance on third-party food delivery platforms such as Zomato and Swiggy, which rivals are heavily dependent on.
($1 = 85.2590 Indian rupees)
(Reporting by Shivani Tanna in Bengaluru; Editing by Mrigank Dhaniwala)
