Chairmen’s Message

Left to Right:
Mr. Shyam S. Bhartia - Chairman & Director
Mr. Hari S. Bhartia - Co-Chairman & Director

Sharpening Our Strategic Focus

Dear Shareholders,

FY 2019 was a year marked by profound political and economic changes around the world. We are pleased to report that against this challenging backdrop, JFL's clear and differentiated strategy, coupled with key initiatives that we undertook to accelerate the delivery of long-term value to both our continuing shareholders and other key stakeholders, yielded outstanding results. With every passing year, we continue to add to our strengths and implement innovative measures to enrich the lives of our consumers. These efforts drive our consistent value creation efforts.

Our quality offerings and best-in-class delivery services create enriched value and experience for our patrons. We are driving innovation in our core business to bring greater variety and excitement to our offerings as well as to improve our operations. By simplifying and standardising our business processes, we continue to strengthen our business focus.

Operational Performance

For Domino's Pizza, in India, we opened 102 new restaurants and closed nine, thus taking our total restaurant count to 1,227 restaurants across 273 cities. We continued to delight our consumers with new flavours and combinations, with our ‘World Pizza League' offering that comprised 10 new flavours of pizza that celebrated the most popular flavours from the world's top cricketing nations. Launched just ahead of the busy cricket season, the range generated a lot of interest and attained popularity.

The year also witnessed the roll-out of a new store design for Domino's to reflect a warm, contemporary personality aimed at improving the dine-in experience; going forward, all new stores will feature the new look. Dunkin' Donuts reported strong top line growth in FY 2019. The sharp focus on our core portfolio of donuts and beverages, optimising costs and efficiencies, helped break even during Q3 FY 2019. Another highlight was the launch of our first own brand – Hong's Kitchen - marking our entry into the large Chinese food segment. It addresses the gap between Chinese food street vendors and premium fine-dining restaurants. Our first restaurant under this brand opened in Gurugram and has got off to a promising start.

Moreover, we made a record-breaking entry into the Bangladesh market with Domino's Pizza. Within its first week of operations, Domino's Pizza witnessed a record number of orders from its first restaurant, which is the highest for the brand across its network in 85 countries.

In a consumer-driven tech-first world where food-tech companies are growing, we relaunched our native app with improved functionalities such as advance ordering, live order tracking and an improved payments interface. We are embracing digital transformation by using consumer data to improve our products and service delivery, including a seamlessly digital consumer experience. The year saw greater contribution of online ordering to overall sales at 70% driven by the all new Domino's App.

Financial performance

Our FY 2019 operating revenue stood at  353,066.94 lakhs, an increase of 18.5% over the last year, which came on the back of 16.4% SSG for Domino's Pizza, the highest ever in the last seven years. Our EBITDA was  60,776.58 lakhs, a growth of 36.2% over the previous year, with EBITDA margin at 17.2%, up by 220 basis points. The Profit After Tax stood at  32,280.48 lakhs, with 56.4% growth over last year. The Board of Directors has recommended a dividend of  5.00 per equity share of  10 each fully paid up for the financial year ended March 31, 2019, subject to approval of the shareholders in the Annual General Meeting.

An Engaged Workforce

Two of our most important differentiators lending us a strong competitive advantage are our people and our culture. We believe the engagement, capability and diversity of all our people is the key to our successful growth. We continue to enhance our employee proposition to ensure a highly engaged, performance-focused and fulfilled workforce that truly reflects the diversity of the society we live in and the communities we engage with.

Our Strategic Focus

Owing to a number of economic, demographic, consumer and technology trends that are serving as strong tailwinds, we believe that the market for non-homemade food will grow on a sustained basis over the upcoming years, as consumers seek more and more convenience. In this growing market, JFL is well placed to grow and lead.

Our strategic focus going ahead will be to fortress Domino's Pizza brand through high-quality products, continue to offer value for money and expand our geographical footprint. This will be augmented through greater investments in technology and data science, which will help in building a great customer experience. We aspire to build a portfolio of brands across cuisines, scale up Hong's Kitchen and build a strong international business in Sri Lanka, Bangladesh and beyond.

We take this opportunity to thank our partners in Domino's International and Dunkin', all our employees, our business partners and all our other stakeholders who have been a great partner in driving stellar results for the year. We thank you, our shareholders, for your continued support, trust and confidence.

With warm regards,

Shyam S. Bhartia

Chairman & Director
May 15, 2019

Hari S. Bhartia

Co-Chairman & Director