Domino’s reports 1.9% net profit dip for 2024

The group said FY2025 sales are slightly below expectations.

Domino’s Pizza Enterprise (DPE) reported a 1.9% dip to $120.4m in its net profit after tax (NPAT) for the full year ending 30 June 2024.

The group saw its network sales reach $4.18b for the period, a growth of 4.6% compared to last year. Online sales grew 7.5% whilst same-store sales grew by 1.5%.

Meanwhile, Domino’s 898 stores in Australia/New Zealand delivered underlying EBIT of $124.1m (+10.4%), a record result for these markets, with Europe’s growing underlying EBIT +33.8% to $70.7m from 1,380 stores. 

The group’s Asian business was affected by external factors, including geopolitical tensions affecting Malaysia. Underlying EBIT was -28.7% to $42.9m (-25% to $45.1m excluding the effect of foreign exchange movements). 

H1 2025 trading update

DPE said FY2025 sales are slightly below expectations, largely due to timing issues as some larger markets compound highly successful limited-time promotional campaigns or one-off events.

Australia/New Zealand continues to perform positively, with higher SSS through higher ticket than the prior corresponding period, in which this market had a one-off customer lift through the Matildas’ performance in the FIFA Women’s World Cup finals. 

European sales are affected by German performance in the prior corresponding year, in which Domino’s achieved record sales with their highly success Doner Kebab promotion.

Benelux SSS year-to-date is positive, while France still requires more traction with its turnaround program in this Half, including an increase in marketing spend planned for Q2. 

In Asia, Japan sales are negative this Half, however, the underlying performance of franchise stores remains stronger than at the same time last year, with more profitable orders through fewer discounts.

Malaysian sales continue to be affected by geopolitical issues and are expected to be negative until Q2 of FY2025. Singapore and Taiwan are achieving positive SSS year-to-date.

Outlook

Domino’s said that a return to a 7% to 9% store growth will not be achieved in FY2025 or FY2026 and would rely on continued improvements in franchise partner profitability.

“There is more work to be done, but we have made important steps, benefiting our customers, franchise partners and shareholders. We thank all three for their continued support.” 

DPE announced an interim dividend of 50.4 cents per share.