AUSTRALIA- the largest pizza chain in Australia, Domino’s Pizza Enterprises, has reported a 1.9% drop in net profit for the 2023/2024 financial year to AU$120 million (US$80.98 million).
However, the pizza chain reported a 4.6% increase in network sales for the full year ending June 30, 2024, to AU$4.18 billion (US$2.81 billion) compared to the previous financial year.
In the reported financial year, online sales also increased by 7.5%, while same-store sales increased by 1.5%.
The chain’s 898 outlets in Australia and New Zealand recorded a 10.4% increase in earnings before interest and taxes (EBIT) to AU$124.1 million (US$83.7 million), a record performance for this market segment.
According to Domino’s, this performance was mostly inspired by one-off customer sales improvements, thanks to the FIFA Women’s World Cup Finals hosted by Australia and New Zealand in 2023.
Domino’s 1,380 outlets across Europe delivered an underlying EBIT of AU$70.7 million (US$47.7 million) for the reported financial year, a 33.8% increase compared to the previous financial year.
The positive performance in Germany is attributed to the chain’s record sales in Germany, which were attributed to the successful Doner Kebab promotion campaign.
However, this impressive performance in the European and Australian regions was offset by a dismal performance in Asia, mostly affected by external factors, including political unrest in Malaysia.
The pizza chain’s underlying EBIT for this region was 28.7% lower in the reported financial year compared to the 2022/2023 financial year to AU$ 42.9 million (US$ 28.9 million) before foreign exchange adjustment.
After foreign exchange adjustment, the underlying EBIT for this region was 25% lower compared to the previous financial year.
In the future outlook, the pizza chain predicted it might not achieve a 7-9% store growth for the 2024/2025 financial year and will rely on franchise partner profitability.
The company said in a statement, “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.”
The chain also announced an interim dividend of 50 cents per share.
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