Domino’s reports mix results in half-year trading update

The CEO said more work is needed to get the balance right in its international markets.

Domino’s Pizza Enterprises (DPE) CEO Don Meij said it needed to get the balance right in the company’s international markets after the group reported mixed results in its half-year trading update for the six months ended December 2023.

The group reported strong same-store sales (SSS) in the first seven weeks of H2 2024 in its Australia and New Zealand markets on the back of new product launches designed for delivery and targeting new customers on more occasions. However, SSS sales in Europe dipped by  0.64% due to a decline in carry-outs in France and labour cost increases in the Netherlands.

READ MORE: Domino’s withdraws guidance for FY2024 outlook

Germany continues to lead the region, growing delivery sales by winning new customers through aggregator
partnerships and moving advertising spending from TV to digital channels including social media.

In Asia, SSS in the first seven weeks of H2 returned to positive growth by 0.34%. Singapore delivered the strongest growth whilst Malaysia is still experiencing external headwinds due to geopolitical issues.

“The past 12 months have reinforced the importance of launching inspired new products, designed for delivery, to give customers more choice on more occasions – whether it’s a family bundle, a lunchtime offering, or an on-the-go snack. Our approach is unchanged; the difference in our performance across markets is our execution,” Meij said

In total, DPE's network sales increased by 8.8% to $2.14b whilst same-store sales (SSS) rose by 1.25%

The group also reported an underlying revenue of $1.27b an increase of 10% from $1.15b.

“As foreshadowed at the trading update, earnings for the First Half to December 31 (H1 FY2024) were +22.8% higher than the immediately prior six months (H2 FY23) but were 5.3% lower than the First Half in the prior Financial Year (H1 FY2023),” the group reported.