Domino's Pizza H1 Profit, Orders Down; Plans Buyback; Sees FY24 Adj. EBITDA At Lowend Of Market View

(RTTNews) - Domino's Pizza Group PLC (DOM.L) reported Tuesday that its first-half profit before tax fell 35.2 percent to 59.4 million pounds from last year's 91.5 million pounds.

Basic earnings per share were 10.7 pence, down 44.6 percent from last year's 19.3 pence.

Underlying profit before tax was 51.3 million pounds, compared to 50.9 million pounds a year ago. Underlying basic earnings per share were 9.8 pence, compared to 9.5 pence a year earlier.

Underlying EBITDA was 69.0 million pounds, up 0.4 percent from last year.

Group revenue fell 1.8 percent to 326.8 million pounds from last year's 332.9 million pounds, with lower supply chain revenue offset by increased corporate store revenue following the acquisition of Shorecal.

System sales edged up 0.2 percent from last year to 767.7 million pounds. Meanwhile, total orders edged down 0.9 percent to 35.1 million from prior year's 35.4 million.

Further, the Board has declared an interim dividend of 3.5p per share, an increase of 6.1 percent on the prior year.

The company also announced a new up to 20 million pounds share buyback programme that will commence with immediate effect until December 29. With this, the company aims to reduce share capital.

Regarding the current trading, Domino's Pizza said its total orders in July were up 5.8 percent on a comparable basis, with a good contribution from the Euros.

For fiscal 2024, the company now expects underlying EBITDA, including around 5 million pounds contribution from Shorecal, to be towards the lower end of the current range of market expectations.

The company previously projected full-year underlying EBITDA to be in line with market expectations. Previously, the firm did not expect Shorecal to make a significant contribution to annual performance.

The current estimate, based on based on 8 analysts' forecasts, for underlying EBITDA is in a range of 144.3 million pounds to 149.2 million pounds, with a mean of 147.1 million pounds.

Despite the uncertain market, Domino's Pizza is confident to maintain trading momentum into the second half, and expects to deliver growth in both order count and like-for-like sales in fiscal 2024.

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