Higher Costs Offset Domino’s India Growth as Jubilant FoodWorks Reports Flat Profit
India’s Jubilant FoodWorks, the operator of Domino’s Pizza outlets in the country, reported largely unchanged quarterly profit as rising fuel, wages and raw material costs offset steady business growth. Profit from continuing operations stood at ₹1.14 billion, compared with ₹1.13 billion in the same period last year. However, its net profit declined by more than 40% to ₹1.08 billion.
The company’s second-quarter revenue increased around 12% to ₹26.08 billion, while total expenses rose 12.9% to ₹24.68 billion. Domino’s India recorded like-for-like sales growth of 4.1%, improving from 2.5% in the previous quarter. Meanwhile, Popeyes, Jubilant’s fried chicken brand, reported strong like-for-like growth of 53%.
Despite the improved sales performance, inflationary pressures continued to affect profit margins. Jubilant FoodWorks said rising LPG prices, higher minimum wages and increasing raw material costs had an impact of approximately 200 basis points. The company also highlighted rising prices of essential ingredients such as cooking oil and cheese, adding to the cost pressures.
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