Standalone Performance

Performance for the quarter ended September 2016 (YoY)

The net sales increased by 13% to Rs 665.54 crore on the back of enhanced volumes and positive same store sales growth, driven by network extension into existing and new cities and towns, menu additions such as Burger Pizza and Pizza Mania Extremes, targeted promotional measures and benefit of extensive online/mobile presence.

Same store sales growth (SSG) of Domino on YoY for Q2 FY17 was 4.2% against -3.2% in Q1 FY17, 2.9% in Q4 FY16, 2% in Q3 FY16 and 3.2% in Q2 FY16.

32 new stores were opened in the quarter. The total number stores at the end of quarter was 1081. 1085 restaurants as of 26^th Oct. 2016 across 251 cities.

Average OLO contribution to delivery sales in Q2 FY17 was around 47% against 36% in Q2 FY16. Mobile Ordering sales contribution to overall OLO was around 54%. Currently, there are over ~5 mn downloads of the Domino's Pizza mobile ordering app across various smartphones.

The new launches from Domino were - Navratra Pizza, Burger Pizza and Pizza Mania Extremes.

The company has 73 Dunkin' Donuts restaurants in India at the end of the quarter. The company opened 1 new restaurant and closed 5 in the quarter. 73 restaurants as of 26^th Oct. 2016 across 23 cities. The new launches from Dunkin' Donut were - Donut Cakes, DunkyDoos and Big Joy Burger.

The operating profit margins declined by 60 bps to 9.7% mainly due to rise in raw material cost by 140 bps to 21.9%, rent by 60 bps to 10.9% and other expenses by 20 bps to 31.6% of adjusted net sales. The operating profit inclined by 6% to Rs 64.28 crore.

Rise in employee cost due to increase in restaurant network and annual increments. This increase was offset by efficiency gains due to deployment of six sigma techniques and impact of increase in OLO business. Increase in rental expenses as per escalation agreement and increased network. Increment in other expenses as a result of heightened marketing and promotions in order to drive sales including the introduction of burger pizza

Total number of employees as on 30 September 2016 stood at 28,321 as against 29,169 as on 30 September 2015.

Other income increased by 47% to Rs 4.28 crore. Depreciation rose by 19% to Rs 36.61 crore. The PBT was declined by 2% to Rs 31.95 crore.

Tax outgo declined 3% to Rs 10.38 crore. The effective tax rate was at 32.5%, down from 32.9%. The net profit has decreased by 1% to Rs 21.57 crore. The net profit is reflective of the curbed revenue growth and impact of higher promotional activities on gross margins in the quarter on account of weak consumer sentiment

Performance for half year ended September 2016 (YoY)

The net sales increased by 10% to Rs 1274.46 crore The operating profit margins declined by 150 bps to 9.6% The operating profit declined by 4% to Rs 122.02 crore.

Other income increased by 26% to Rs 7.37 crore. Depreciation rose by 16% to Rs 69.22 crore. The PBT was declined by 18% to Rs 60.17 crore.

Tax outgo declined 19% to Rs 19.60 crore. The effective tax rate was at 32.6%, down from 32.9%. The net profit has decreased by 18% to Rs 40.56 crore.

Management comments on performance:

We are pleased to share JFL's improved performance for the quarter, driven by new product innovations such as the launch of Burger Pizza, positive response on pizza mania extreme and continued investments in restaurants. Technology and innovation continue to be our focus areas to achieve operational efficiencies, customer retention and addition. The SAP platform is now well connected across functions and will help fuel growth and generate deeper & precise insights on operational and financial parameters, thereby enabling faster and objective decision making. Additionally, we sharpened our targeted marketing initiatives using predictive analytics tools which have assisted in topline growth. For the Dunkin' brand, we continue to work on optimizing store level profitability, while working on introducing new products and overall cost efficiencies.

Going ahead, we believe we have a great business that we are very excited about and a very solid infrastructure for continued growth

Mr. Ajay Kaul, CEO, Jubilant FoodWorks Limited said

Q2 performance has been encouraging for JFL. Our key strengths of innovation, technology and superior reach across regions, have helped JFL deliver positive results in an environment that is pressured by constrained consumer spends.

With our ROI-centric approach towards expansion of restaurants for both our brands, we have successfully grown our network at a healthy pace. Today Domino's Pizza is spread across 251 cities in the country with a network of 1085 restaurants, while Dunkin' Donuts has 73 restaurants across 23 cities.

Going ahead we are committed to executing on our long-term growth strategy and believe there are compelling opportunities ahead as we expand our reach to new and existing customers

Other Developments

During the current quarter, the company has further invested an amount of Rs 3.34 crore in its Wholly Owned Subsidiary ' Jubilant FoodWorks Lanka (Private) Limited' and its investment in the said subsidiary as at 30^th Sept, 2016 is Rs 67.70 crore.

• Pace of expansion to be strongly governed by ROI parameters. For FY17, target of around 130 Domino's Pizza and around 15 new Dunkin' Donuts. Successfully opened 59 Domino's Pizza and 8 Dunkin' Donuts' restaurants thus far

• Utilize digital platform to enhance reach and accessibility

• Strengthen infrastructure to support growth and capitalize demand

• Greater Noida mega commissary (currently underway) to create world class facilities to cater to future growth

• Innovation stands as a key component of business DNA and plays an important role in creating a unique Advantage

• Efforts to further strengthen business foundation will continue in order to best capitalize sector potential

Other Information

The promoter's shareholding stood at 45.04%.

The scrip is trading around Rs 1070 on the BSE