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Greetings from JFL and our 20,000+ brand ambassadors!
It has been another remarkable year for your Company, which has shown strong performance in a challenging environment. With our people working dedicatedly and committedly in pursuance of our vision and goals, we once again delivered on our promise, and in fact went beyond to give our best to each of our stakeholders. It is to our people, our brand ambassadors, that we dedicate the success that marked FY 2013 for your Company, and who join us today in thanking you for your continued cooperation and unstinted support through the year.
For us, at JFL, people are that precious link which connects and continuously strengthens our business value chain. With the store manager virtually the CEO of his store, and senior management personnel working at the store/ restaurant on a periodic basis, your Company draws dynamism and inspiration from each member of the JFL team as it moves forward on its growth trajectory.
Challenging circumstances, as prevailed in the year gone by, in fact inspired the best among our people, thereby driving the Company's sustained growth. However, backed by the hard work and zeal of our brand ambassadors, we continued to drive aggressive expansion across products and geographies to sustain the growth momentum.
Our focussed growth plan was driven by targeted growth initiatives, network expansion, larger distribution network, innovative product launches, a strong system to support these initiatives and, above all, consumer satisfaction. And each of these growth drivers found resonance in the passion of our people, thus demonstrating our collective drive to succeed.
With people steering our goals and mission, we continued to make innovations in our product line, new product introductions, significant investments in marketing campaigns and expansion across our digital ordering platforms coupled with infrastructural development at our commissaries.
Total revenues increased by 38% over the previous fiscal. The same store sales growth for the year stood at 16.2%. Network expansion, innovative menu offerings and strong financial discipline across business levels pushed EBIDTA to Rs. 2,444 Million, with PAT standing at Rs. 1,351 Million for FY 2013.
The decrease in EBIDTA margin from 18.7% in FY 2012 to 17.4% in FY 2013 is largely attributed to establishing Dunkin' Donuts business as well as the opening of new stores, coupled with increase in service tax. In the long run, however, your Company stands to positively leverage the potential growth from both, Dunkin' Donuts and Domino's Pizza business.
The enthusiasm of our brand ambassadors is deeply woven into the Company's business fabric to drive our relentless march towards the realisation of our goals. Backed by focussed initiatives in network expansion and menu innovation, we witnessed sustained growth across both our brands, Domino's Pizza and Dunkin' Donuts.
Expanding the Domino's Pizza business
Surging forward towards achievement of our targets, we successfully launched 111 new Domino's Pizza stores, to expand our network to 576 Domino's Pizza stores across 123 cities of India, as of March 31, 2013. Needless to say, we could achieve this as a result of the passion and commitment of our people, who matched our goals at every step. We continued to move ahead on our onward journey by building on our new brand positioning to strengthen emotional connect with consumers, 'Yeh hai rishton ka time'.
Our product portfolio expanded to encompass both, the pizza category as well as new categories like Taco Indiana, a fusion of Mexican & Indian cuisine, to further add to the excitement quotient of the consumers. We expect the growth in this segment to gain further momentum, going forward, and shall continue to innovate across existing and new product categories to offer a greater variety to the consumers, with the continued and committed contribution of our people.
Expanding the Dunkin' Donuts business
Our people engagement also helped extend the Company's growth charter to our newly launched "Dunkin' Donuts & More" Restaurants, which have been received well by the consumers in the first year of business. For our Dunkin' Donuts business, we are experimenting both with the restaurant formats as well as the menus to determine the ideal combination. During the year, we successfully launched 10 Dunkin' Donuts restaurants primarily across the Delhi-NCR region and one at Chandigarh, and shall continue to expand this business on a strategic, people-centric blueprint.
Building online capabilities
During the year, apart from our traditional growth platforms, we invested significantly in digital business channels. Ably supported by our brand ambassadors, who proved to be willing and keen learners of the new technology skills, we further reinforced our online and digital thrust across our business. While online and mobile ordering added a new dimension to our business growth, social media engagement enabled us to capture consumer interest and imagination in a big way.
We are confident that our online ordering platforms, which require significant investments at the initial stages, will prove beneficial for your Company in the long run as a result of consumer excitement and process automation. We are just beginning to leverage the potential of e-age revolution to accelerate growth and our efforts have been well appreciated through several awards in this category.
Our future growth strategy
Notwithstanding the current industry dynamics, we believe the potential to grow remains significant and we will continue to work hard to unlock the opportunities available. Our focus on expansion shall continue, with plans in place to open 125 new Domino's Pizza stores next year, while taking the brand to many more consumers and cities. On the Dunkin' Donuts front, we have 18 new restaurants on the agenda in the coming fiscal, coupled with consistent brand development at all levels. We are confident that with the strong and unwavering support of our people, we shall successfully achieve our targeted goals.
Our future agenda is focussed on extending our brand in the market, competing in the industry effectively, streamlining costs, offering innovative and superior value products to consumers and enhancing operational excellence. These efforts, along with several other initiatives, will increase our profitability and ensure better ability to deliver great products to the consumers.
We believe that Domino's Pizza and Dunkin' Donuts are well positioned for continued progress, as our brand ambassadors power our growth numbers, while the strong fundamentals we have built over the years continue to give us a strong competitive edge.
Investing in people growth
Cognisant of the importance of people to our growth strategy, we shall continue to invest in building our HR strength with greater focus on training and development, across functions. A well laid-out strategy is in place, and we are constantly upgrading the strength of our people through focussed skill building programmes to execute this strategy.
On a concluding note
In conclusion, we would like to take this opportunity to thank all our shareholders and stakeholders for the confidence they have reposed in us, and the continued support they have extended to us. We are grateful to our Board Members for their guidance and advice. Above all, we are thankful to our team of 20,000+ brand ambassadors who translate our plans into action and make them a resounding success. With your belief in us, we are confident of keeping up the growth momentum and report even better numbers.
Thank you and best wishes.
Shyam S. Bhartia
Chairman & Director
Hari S. Bhartia
Co-Chairman & Director