Domino’s Pizza Enterprises Ltd Financial Results For the 6 months ended December 2023

Domino’s Pizza Enterprises Ltd reported a return to same-store sales growth, with the strongest growth in six years in Australia and New Zealand.

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Domino’s Pizza Enterprises Ltd Financial Results For the 6 months ended December 2023

  1. Domino’s Pizza Enterprises Ltd reported a return to same-store sales growth, with the strongest growth in six years in Australia and New Zealand.

  2. The company has seen positive same-store sales growth in Asia, with an improvement in Japan noted after January.

  3. Despite facing record inflation, Domino’s has been working to increase weekly customer counts and profits for franchise partners and the company.

  4. For the first half of the financial year 2024 (H1 FY24), earnings were 22.8% higher than the previous six months but 5.3% lower than the first half of the previous financial year (H1 FY23).

  5. A company restructuring and savings program is underway, expected to save around $50 million this financial year, with a third of the savings to be shared with franchise partners.

  6. Network sales increased by 8.8% to $2.14 billion, with online sales up by 11.8% to $1.71 billion.

  7. Earnings before interest and tax (EBIT) for H1 FY24 were down 5.3% to $107.9 million compared to H1 FY23 but increased by 22.8% compared to the preceding half-year.

  8. The first seven weeks of trading in the second half showed network sales up by 3.78%, with same-store sales (SSS) up by 2.96%, and 7 new stores opened.

  9. In Australia/New Zealand, innovative products like My Domino’s Box and Meltzz, designed for delivery, have been launched, contributing to growth.

  10. Europe faces challenges, with France needing more focus to regain momentum and the Netherlands dealing with increased labor costs.

  11. Domino’s has returned to positive same-store sales in Asia, with Japan showing growth through aggregator channels and successful promotions.

  12. The company plans to pay an interim dividend of 55.5 cents per share, unfranked, with a record date of 27 February and a payment date of 27 March 2024.

  13. The company is focused on rebuilding average weekly customer counts and franchise partner profitability across its markets.

This announcement is a summary of the company approved ASX announcement on 21/2/2024 and is based on facts.