InvestorQ : Why has Jubilant Foodworks made a loss in the Jun-20 quarter?
Riya Dwivedi made post

Why has Jubilant Foodworks made a loss in the Jun-20 quarter?

Answer
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shrinidhi Rajan answered.
3 weeks ago


Jubilant Foodworks has actually posted a net loss of Rs.74 crore in the Jun-20 quarter as against a net profit of Rs.72 crore reported in the Jun-19 quarter. COVID-19 lockdowns took its toll on the business flows of its brands like Domino’s Pizza and Dunkin’Doughnuts.

Total revenues from operations for the Jun-20 quarter also slipped by 59% to Rs.388.41 crore as the lockdown raised some serious health concerns leading to a slowdown in order flows. Social distancing norms also made home delivery hard to execute.

However, it must be said that the company did manage to partially offset the impact by managing costs more efficiently in the quarter. Apart from trimming of costs, the company also entered into rent concession agreements with lessors to reduce rent payouts.