AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Dominoâs Pizza statutory Net Profit After Tax (NPAT) declined by 9.1% to $53.3 million for the first half of Fiscal 2019 compared to the previous corresponding period. The bleak profit driven by one-off costs in H1FY19 sent DMP to hit by bearish market trends as the stock price slipped by 3.05% to last trade at $44.500 on 20 February 2019.
The total non-recurring costs of $25.7 million took a toll on companyâs statutory results for the half year ended 31st December 2018 as its statutory NPAT declined by $5.4 million and statutory EPS stood at 62.4 cps, down 6.2% on 66.5 cps in 1H FY18. This reflects the one-off costs associated to the professional fees, legal and settlements that Dominoâs spent for protecting its own operational IP across Australia and New Zealand region. However, the major chunk of non-recurring costs was associated with the acquisition of Hallo Pizza, its Germany conversion and integration as well as France conversion of Pizza Sprint stores.Â
However, Dominoâs Pizza Enterprises Limitedâs (ASX:DMP) underlying results have shown significant growth in companyâs operation with Network Sales up by 14.6%, revenue by 23.7%, EBIT by 12.1% and NPAT by 8.4% for H1 FY19 compared to H1 FY18. The solid underlying performance of the company demonstrates massive growth in its online sales primarily driven by Hallo Pizzas acquisition in Europe. This translates an increase of 16.5% to $934.3 million of online sales in 1H FY19, +$132.2 million higher than the prior corresponding period.
While Dominoâs has outgrown other QSR businesses, management had expectations to be better, with performance falling short of internal targets. The new management initiatives in Japan have materially grown unit economics and trading performance throughout the half year with EBITDA growing at 34.3% on the prior corresponding period.
Also, the company has posted strong underlying cash flows which were up 26.2% with substantial cash conversion rate and repayment of store loans by franchisees in Japan. The new management initiatives in Japan have materially grown unit economics and trading performance throughout the half year with EBITDA growing at 34.3% on the prior corresponding period.
Europe and Japan accounted for more than 70% of its revenue and more than half of its EBITDA. Its global network sales growth was +3.3% higher on a Same Store Sales basis, reflecting strong performances from Japan, Germany, Benelux3 and New Zealand, with softer performance in Australia, and lower than expected performance in France.
Dominoâs reached significant store milestones in the Half Year, surpassing 1,000 Dominoâs branded stores in Europe, 700 stores in Australia and 300 Dominoâs branded stores in Germany, opening 77 organic new stores and converting 72 Hallo Pizza stores. Moreover, during the first seven weeks of H2 FY19, the company opened 13 more new organic stores with same-store sales growth of +4.0%.
The Board declared an interim dividend of 62.7 cps, up 7.9% on 1H FY18, payable on 14 March 2019 with the record date of 27 February 2019.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
