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Australia’s Domino’s Pizza posts stronger interim profit but misses estimates

February 13, 2018 11:18 PM
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A worker carries a pizza for delivery as he exits a Domino's pizza store in Sydney, Australia, August 12, 2015. — Reuters picSYDNEY, Feb 14 — Australian fast-food chain Domino’s Pizza Enterprises Ltd said interim profit rose 17 per cent, helped by increasing sales across its vast network of stores, but failed to match market expectations.

Net profit was A$58.7 million (RM181.71 million) for the six months to Dec. 31, up from AUS$50 million a year ago, the company said in a statement this morning.

Analysts expected the company to record a net profit of AUS$65.8 million, according to Thomson Reuters I/B/E/S.

The company, which holds the rights to the Domino’s franchise in seven countries from Japan to France, declared an interim dividend of 58.1 cents, compared to 48.4 cents per share from a year ago.

Sales from Japan rose 1.4 per cent, while sales from Europe rose 12.6 per cent. Australia and New Zealand sales, the company’s stalwart moneymakers, rose about 7 per cent.

In August, the biggest Domino’s franchisee outside the United States had disappointed with its full-year 2017 results after recording a drop in offshore sales. Offshore markets account for a large slice of the company’s revenue.

The company has for years been popular with investors because of its aggressive offshore expansion strategy. More recently Domino’s has been emphasising its use of technology, including delivery drones, as a way to cut costs.


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