Domino's reports net profit jumped to 18.1% in FY18
Share prices fell despite the "record profit" and increased dividend.
Domino’s Pizza Enterprises has reported a full-year underlying profit of AUD$136.2 million in the 2017/2018 financial year, 15% higher compared to FY17 and has lifted its full year dividend by 15.5% to 107.8 cents, citing "growing sales in all markets."
Its statutory net profit, meanwhile, jumped 18% to AUD$121.5 million for the year ended July 1. Revenue was also up by 7.5%, listed at AUD$1.15 billion.
“We delivered positive growth in all markets but after consecutive years of significant and compounding growth, our bar for success is even higher,” Group CEO and Managing Director Don Meij said in a statement. “The results of this year reinforce our confidence in our business; strong store metrics with increasing profitability mean internal franchisees are opening new stores and building their businesses."
Domino's added almost six stores a week in FY18; building 145 new stores and acquiring 163 stores from other brands, with total sales growing by 11.7% to AUD$2.59 billion.
The group says they plan to build "between 225 and 250" stores in FY19.
Domino's shares fell sharply in opening trade, however, and were down AUD$5.20, or 10% to $47.22 as of this writing.
