Domino’s expects full-year EBITDA at the lower-end of market expectations
The pizza giant said the first half of the year has been slow.
Domino’s Pizza Group plc is expecting its FY2024 underlying EBITDA to be towards the lower end of the current range of market expectations, affected by the slower start to H1 and the greater pass-through of food costs to franchise partners.
“Following a slow start to the year, we now have good momentum in the business with our strategic initiatives gaining traction and our trading performance accelerating steadily against strong comparatives from last year. In Q2 we grew orders, with a notable improvement from the middle of May and importantly have halted the trend of declining delivery orders. These are now returning to growth and this momentum has continued through June and July, helped by a good performance through the Men’s Euro Football tournament,” Andrew Rennie, CEO of Domino’s Pizza Group said.
Group revenue was down 1.8% with lower supply chain revenue offset by increased corporate store revenue following the acquisition of Shorecal. Underlying EBITDA was up 0.4% at £69m. Excluding the £2.3m gain on sale of freehold property in H1 23, Underlying EBITDA is up 3.9%.
Underlying profit before tax up 0.8% to £51.3m, with higher interest costs offset by lower amortisation. Statutory profit before tax of £59.4m after including £8.1m of non-underlying items.
The group also initiated a £20m buyback programme.
Meanwhile, in line with the strategy to recycle capital, Domino’s completed the disposal of London corporate restaurants. A total of 305 restaurants were sold to five different franchise partners for a total consideration of £35.1m, of which £17.3m was received by 30 June 2024.
H1 total orders of 35.1m, down 0.9% vs. H1 23, with collection orders up 2.4% and delivery orders down 2.6%. On a comparable basis, total orders were down 0.1%.
