Zomato’s founder and CEO Deepinder Goyal has announced a revenue jump in gross revenue to US $74 million in FY18 from US $51 million in FY17 giving a total rise of 45 percent.
Goyal made the announcement via company’s official blog Zomato Blog. The company’s operating burn (loss) dropped 26 percent to US $11 million in FY18 from US $15 million in FY17. Of the US $11 million burn, US $6 million were incurred in two months February and March this year when the company decided to double down on growth.
“We demonstrated that our business can generate profits – almost all throughout the year, we hit EBITDA break-even globally, across all our business, and while maintaining good growth levels; and then in the last two months, we decided to double-down on growth (more on that later),” wrote Goyal.
The food ordering accounted for 30 percent of the company’s revenue in FY18, when compared with 18 percent in FY17. Goyal in the blog claimed that company reached the 5.5 million mark in terms of monthly food orders in March 2018. In a short period of time, Zomato Gold now contributes 12 percent of the monthly revenue.
“We are excited about Zomato Gold and are very soon taking it to more cities and also expanding our membership base as fast as we can,” Goyal said.
Zomato clocked revenues worth Rs 60.7 crore in online ordering in FY17 forming about 19 percent of its business last year.
“As we enter a new financial year, we are extremely excited and pumped and hope we can add more value to our restaurant partners and keep delighting our users in the coming years. We are currently at an annualized revenue run rate of US $100m. And looking at the last two months (our revenue in March is 35 percent up from January), if the momentum continues, we will be recording one of our best years in business. And the team is very adamant to continue (and even further increase) this momentum,” Goyal concluded.
Jubilant FoodWorks Limited (JFL) has reported its financial results for the quarter and nine-months ended 31st December 2019.
Operating Revenues for Q3 FY20 stood at Rs 10,596 million, a growth of 14.1% over Q3 FY19. Like for Like (LFL) Sales growth for Domino’s Pizza stood at 7.2% for the quarter. Same-Store Growth (SSG) for Domino’s Pizza was 5.9%, on a high base of 14.6% last year.
Growth was driven by a strong performance in Delivery, especially online sales. Online sales now contribute to 87% of Delivery sales. The Domino’s App saw 4.1 million downloads during the quarter.
The launch of the Masala Pizza range also helped drive sales during the quarter, with the performance of the innovation significantly exceeding internal targets.
EBITDA for Q3FY20 stood at Rs 2,536 million, at 23.9% of revenue. Profit after Tax in Q3 FY20 was at Rs 1,037 million, at 9.8% of revenue.
During the quarter, the business faced significant inflationary headwinds, especially in Dairy. However, the strong focus on driving operating efficiencies ensured that the business delivered sequential improvement in operating margins.
The store opening momentum further accelerated during the quarter. A total of 47 stores were opened during the quarter, 44 for Domino’s Pizza, 2 for Dunkin’ Donuts and 1 for Hong’s Kitchen. This was the highest store opening count in 20 quarters.
Domino’s Pizza Bangladesh continued to do very well. During the quarter, the company opened its third store in Bangladesh.
Shyam S. Bhartia, Chairman, and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We have maintained strong growth momentum despite a slowdown in consumption trends. This was driven by our increased focus on the basics of the business while elevating the customer experience. We will continue to emphasize our key pillars of growth to deliver sustained growth going forward.”
Pratik Pota, CEO and Whole-time Director, Jubilant FoodWorks Limited, added, “We are pleased with the quarter’s performance. Faced with a challenging demand environment and unprecedented inflationary commodity trends, we delivered strong revenue growth of 14.1% and a sequential improvement in EBITDA margins. Underlining our belief in the potential of the Indian Food Service market, we stepped up the pace of new store expansion, opening 47 new stores during the quarter.”
Store Matrix
|
Domino’s Pizza |
||||
|
Particulars |
Q3 FY20 |
Q3 FY19 |
9M FY20 |
9M FY19 |
|
Like-for-Like Growth* |
7.2% |
15.2% |
6.5% |
20.4% |
|
SSG** |
5.9% |
14.6% |
5.0% |
20.0% |
|
Network data |
||||
|
Restaurant at the beginning of the period |
1,283 |
1,167 |
1227 |
1,134 |
|
New Restaurants |
44 |
35 |
110 |
72 |
|
Closed restaurants |
2 |
2 |
12 |
6 |
|
Restaurants at the end of the period |
1,325 |
1,200 |
1325 |
1,200 |
|
Number of New Cities added |
6 |
2 |
10 |
5 |
|
1325restaurants as of 31st December 2019 across 282cities |
||||
|
Added: 1 new state (Mizoram) and 06 new cities in Q3 FY20[Dahanu(Maharashtra), Mandya(Karnataka), Bongaigaon(Assam), Kevadia(Gujarat), Aizawl(Mizoram), Gurdaspur(Punjab)] |
||||
|
Online data |
||||
|
Particulars |
Q3 FY20 |
Q3 FY19 |
||
|
OLO to Delivery Sales % |
87% |
73% |
||
|
Mobile Ordering sales to OLO % |
95% |
88% |
||
|
App Download Count cum. (in mn) |
29.4 |
15.3 |
||
|
Dunkin’ Donuts |
||||
|
Network data |
||||
|
Particulars |
Q3 FY20 |
Q3 FY19 |
9MFY20 |
9M FY19 |
|
Restaurant at the beginning of the period |
30 |
32 |
31 |
37 |
|
New Restaurants |
2 |
0 |
2 |
1 |
|
Closed restaurants |
0 |
0 |
1 |
6 |
|
Restaurants at the end of the period |
32 |
32 |
32 |
32 |
|
Number of New Cities added |
Nil |
Nil |
Nil |
Nil |
|
32restaurants as of 31st December 2019 across 10 cities |
||||
Jubilant FoodWorks Limited (JFL) has reported its financial results for the quarter ended 30th June 2019. Operating Revenues for Q1 FY20 stood at Rs 9401 million, a growth of 9.9% over Q1FY19.
This was driven by Same-Store Sales Growth (SSG) of 4.1% in Domino's Pizza, on a strong base of 25.9% last year. Like for Like Sales growth i.e. sales growth of stores that were not split since 1st April 2018 came in higher at 5.8%.
EBITDA for Q1 FY20 stood at Rs 2191 million, at 23.3% of revenue. Q1 saw a significant increase in advertising and promotional spends as also continued investments in technology.
Profit after tax in Q1 FY20 came in at Rs 748 million, at 8.0% of revenue.
There were 26 new Domino’s stores opened during the quarter, taking the total store count up to 1,249 across 276 cities.
Shyam S Bhartia, Chairman, and Hari S Bhartia, Co-Chairman, Jubilant FoodWorks Limited, said, “We have started the year on an encouraging note. Domino’s has been a very strong brand franchise and our strategic focus remains on brand building and innovation through high-quality products, continued value for money, improved customer experience, and an omnipresent network. Our recent launch in Bangladesh and our entry in Chinese food category through ‘Hong’s Kitchen’ have received an overwhelming response from our customers and should be long term growth drivers in the future.”
Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks Limited, added, “We are pleased with the first quarter’s performance. Lapping one of our highest quarters ever from last year, we delivered near double-digit growth and strong EBITDA margins. Online sales continued to be strong and now contribute to 81% of delivery sales. Our mobile app saw record downloads during the quarter. We are excited by the opportunities that lie ahead and are confident that we have the right strategy to drive sustainable growth and create value.”
Varun Beverages Limited (VBL), one of the largest franchisee of PepsiCo in the world, has reported its revenue from operations of Rs 804 crore during October to December 2018. In the same quarter of the previous year, the company had earned a revenue of Rs 543 crore.
Varun Beverages' Q3FY19 total expenses also moved up to Rs 904 crore against Rs 661 crore in the same period. The company's net loss was Rs 70.8 crore against a loss of Rs 72.8 crore in the same quarter last year.
Varun Beverages is producing and distributing a wide range of carbonated soft drinks (CSDs) and a large selection of non-carbonated beverages (NCBs) as well as packaged drinking water sold under trademarks owned by PepsiCo.
VBL produces and sells PepsiCo CSD brands like Pepsi Diet, Pepsi Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Sting and Evervess. The company is also selling and producing PepsiCo NCB brands such as Tropicana Slice, Tropicana Frutz, Tropicana Juices, Nimbooz and packaged drinking water under the brand Aquafina.
Zomato has seen a huge improvement in user metrics towards the end of FY18, said its largest shareholder Info Edge at the financial results on May 30.
The company witnessed an increase in its order volumes, an important metric for companies in this space, but its average order values have dropped as it goes head-to-head against competitor Swiggy.
The investor maintained that Zomato’s average order value is still higher than that of Swiggy. Info Edge’s Sanjeev Bikhchandani further added that Zomato, which has narrowed the gap between itself and Swiggy, will continue to spend aggressively as it rapidly expands in India.
In April, Zomato had said that it saw a 45% increase in revenues to Rs 481 crore ($74 million) for FY18 while there is a slight reduction in operational burn to about $11 million compared to $15 million in FY17. Meanwhile, the net loss of Info Edge on a standalone basis was Rs 13.7 crore for the quarter ended March 2018 as opposed to its net profit of Rs 32.8 crore in the previous fiscal.
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