Domino’s on track for FY18 profit forecast
Domino’s Australia says it is on track to achieving an expected net profit after tax up 20 per cent for its 2018 financial year.
Releasing its profit results for the first half of its 2018 financial year, the pizza chain said it achieved a net profit after tax of AUD $62.9 million, a 7 per cent increase on its first half 2017 results.
Despite experiencing profit growth, the growth rate is lower than 2017’s first half growth rate, something Domino’s attributed to exceptionally strong same store sales in H1 17 and foreign exchange weakness in Japan and New Zealand.
Domino’s also lowered its FY18 same store sales guidance for Australia and New Zealand from 7-9 per cent growth down to 6-8 per cent.
Managing Director and CEO of the Domino’s Group, Don Meij, said Domino’s will deliver stronger growth in the second half of its 2018 financial year thanks to expanding its store network and making improvements, such as reducing wat times and offering “exciting” new products.
“Our goal is to give existing and new customers more of what they want; menu options, cooking times and a simplified ordering experience that exceeds expectations and the response from our customers demonstrates the importance of this approach,” Meij said.
European Domino’s stores experienced an increase of 12.6 per cent to €298.0m with Domino’s saying its online issues in France have now been overcome.
Japan “did not meet expectations” with the decision to offer a reduced Christmas menu for better execution not a successful one.
Japan sales increased by 1.4 per cent to ¥21,037.9m with same store sales dropping my 1.9 per cent.
Domino’s said it expects Japan performance to improved thanks to the introduction of a new online platform.
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