Domino’s Pizza H1 Revenue Edges Up; Backs FY22 View

Domino’s Pizza Group Plc (DOM.L,DPZ), on Tuesday posted a decline in pre-tax profit for the 26-week period ended in June, amidst food cost inflation. In addition, for the full year, the company has reaffirmed its guidance.

Statutory profit after tax improved to 42.1 million pounds or 9.5 pence per basic share, from 41.3 million pounds or 8.9 pence per basic share, year-over-year basis.

Separately, for the first half, the food chain company has raised per share interim dividend by 6.7 percent, and has also declared a new 20 million pounds share repurchase program.

For the 26-week period to June 26, the UK-based company reported an underlying profit before tax of 50.9 million pounds, compared with 60.8 million pounds of previous year period.

Underlying basic EPS was at 9.5 pence, less than 10.7 pence per share a year ago.

Underlying EBIT stood at 54.8 million pounds as against 63.9 million pounds recorded for the same period of 2021. Underlying EBITDA also fell to 63.5 million pounds, from 71.7 million pounds of last year period.

The food and beverages major registered group revenues of 278.3 million pounds, compared with 277.8 million pounds, during corresponding period of 2021.

Like-for-like system sales grew by 2.4 percent, driven by order count which increased by 2.1 percent.

Like-for-like system sales excluding splits were down 6.4 percent (down 7.5 percent including splits) due to the change in the VAT rate.

System sales for the period were at 710.5 million pounds, versus 752.3 million pounds, on year-on-year basis.

Domino’s declared a new 20 million pounds share buyback drive, with immediate effect, in line with its capital allocation framework and to distribute surplus capital to shareholders.

For the first-half, Domino’s has announced an interim dividend of 3.2 pence per share, higher than last year’s 3.0 pence per share.

For the fiscal 2022, the fast food firm said it still expects its underlying EBITDA and EPS to be in line with current market expectations.

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