Domino’s Pizza has lifted its first-half net profit 29.8 per cent to $69.2 million following strong online delivery sales and a record number of new stores opening worldwide, and will put an increased interim dividend in shareholders’ pockets.
The company’s Australia and New Zealand arm lifted revenue from continuing operations by $137.1 million to $343 million for the six-month period to December 29, with global revenue rising to $905.7 million from $702 million a year ago.
Global food sales increased by $151.3 million to $1.58 billion, up 10.6 per cent on the prior year, and 4.1 per cent growth on a same store sales basis.
Domino’s Pizza Enterprises chief executive Don Meij said business growth was coming largely from online delivery.
In Australia, Domino’s paid $1.1 million to lawyers after former employees alleged they were deliberately underpaid.
The workers’ class action is still to be heard in court and Domino’s has flagged more expenses will follow.
“We’re confident we adhered to Australian law,” Mr Meij said.
“We’re confident we’ve done all the right things.”
The Australian revenue figure was inflated by Domino’s changing its food distribution, which had been outsourced.
The business has since been buying and selling food to warehouses, although there is little effect on overall finances.
International performance was supported by a record 85 store openings across the group, led by 42 new stores in Japan and 12 in France.
Domino’s fully franked interim dividend of 66.7 cents per share is up from the previous interim payout of 62.7 cents, 75 per cent franked.
Domino’s shares on the ASX were trading higher by 13.39 per cent to $65.15 at 1112 AEDT.
DOMINO’S HALF-YEAR RESULTS
* Net profit up 29.8 per cent to $69.2m
* Global food sales increased by $151.3m to $1.58b
* Interim dividend of 66.7 cents per share, fully franked, up from 62.7 cents, 75 per cent franked a year ago.