Domino’s Pizza delivers 23% rise in first-half net profit

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Domino’s Pizza has booked a 23 per cent rise in first-half profits and has lifted its expectations for earnings growth in 2012.

The Australian pizza maker on Wednesday announced a $12.6 million half-year net profit after tax, up 23 per cent on the corresponding period last year.

Domino’s chief executive Don Meij said the results were driven by successful product launches across Australia, New Zealand and Europe.

Growth of the company’s digital business in Australia and New Zealand also supported the gains, he said.

“We have recorded a strong performance for the first half of the 2012 financial year, particularly in Australia and New Zealand where we were rolling over very strong numbers from this time last year,” Mr Meij said in a statement.

Mr Meij said the company was confident of continuing strong momentum across both the markets and as a result was upgrading its 2012 full-year guidance.

“Despite some foreseeable labour and economy challenges, we are confident of delivering strong same store sales for the rest of the year,” he said.

“We are, therefore, upgrading our (earnings and profit) growth for the 2012 full year to be in the region of 20 per cent.”

Domino’s previously said it expected profit growth in the region of 15 per cent, above 2011.

In Europe, network sales were up 12.6 per cent on a constant currency basis on the same corresponding period, on the back of strong new product roll-outs and other operational initiatives, Mr Meij said.

He said social media was becoming a bigger focus for Domino’s.

“On Facebook, we have more than 410,000 fans making us the biggest Australian quick service restaurant using the social platform to connect with our customers on a daily basis,” he said.

Domino’s will pay shareholders an interim, fully-franked, dividend of 13 cents per share, up 25 per cent on the dividend paid in the corresponding period last year.