Domino's India operator's Q2 profit drops nearly 40%
Domino's Indian operator, Jubilant FoodWorks, reported a 39.45% year-on-year (YoY) decline in Q2 FY24 profits, as operating profits dipped to Rs. 72.15 crore from Rs. 119.17 in the corresponding quarter. The margin shrank YoY to 20.87% from 24.28% due to an 11% increase in expenses, amounting to Rs. 1,255.43 crore. Nevertheless, the firm's revenue rose by 4.5% YoY to Rs. 1,344.83 crore (all standalone figures).
Elevated consumer engagement and loyalty program growth
Jubilant FoodWorks's investor presentation reveals that customer engagement remains strong, with a record 10.6 million quarterly app downloads for Domino's, marking a 17.8% growth compared to the previous year. Monthly active users reached 10.8 million. Additionally, the company's loyalty program, Domino's Cheesy Rewards, experienced a 16% increase in enrollment from the previous quarter, totaling 19.5 million members. Loyalty orders accounted for 50% of all orders in Q2 FY24.
Sequential improvement in average daily sales
The company disclosed a second consecutive quarter of sequential improvement in average daily sales for mature stores and gross margin, signaling early indications of structural enhancement in the business. The average daily sales for 1,368 mature stores amounted to Rs. 81,658, a 1.4% sequential increase.
