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Domino's serves up $14.5m net profit

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AAP

2013-02-13

Domino's Pizza has delivered a 15.7 per cent rise in first-half profits and says it is on track to deliver similar profit growth over the full year.

The pizza maker on Wednesday posted a $14.5 million net profit for the six months to December 30, up from $12.6 million in the previous corresponding period.

Chief executive Don Meij said the solid results had been driven by improvements to Domino's core menu items and innovative digital and retail launches.

"We have recorded a strong performance for the first half of the 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.

"We have seen great results from focusing on improving the quality, service and image of our products and stores."

He said more than half of all online orders in Australia and New Zealand were now placed through mobile devices.

In Europe, network sales were up 13.8 per cent, with the company opening 19 new stores in The Netherlands alone during the first half.

While the company re-affirmed its 15 per cent profit guidance for the 2013 financial year, it downgraded its same store sales (SSS) outlook.

First-half same store sales grew just 1.5 per cent, compared to 8.4 per cent in previous corresponding period.

Mr Meij said the company expected two to three per cent SSS growth over the full year, down from three to five per cent.

It also doubled to $30-$35 million its net capital expenditure guidance for the 2012/2013, from $15-$20 million, after announcing plans to purchase 15 stores in NSW and the ACT from a franchisee.

Domino's will pay shareholders an interim, fully-franked, dividend of 15.5 cents per share, up 19.2 per cent on the corresponding period last year.

The company's shares were down 51.5 cents, or 4.95 per cent, at $9.79 at 1036 AEDT.