Domino's shares plunge after FY financial guidance scrapped
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More news: Shares in Domino's Pizza fell 31% in early trading after the dual-listed company withdrew its full-year financial guidance following poor sales performance at its Asia stores.
Domino's withdraws FY financial guidance, expects lower half-yearly profit
The news: Pizza chain Domino's scrapped its FY24 financial guidance after slower-than-expected sales growth in some markets, though sales rose strongly in Australia and New Zealand.
The numbers: In a trading update ahead of its half-year results, Domino's said its Australia and New Zealand branches experienced its best sales performance in six years, finishing 2023 as the fastest-growing pizza company in Australia. However, the company's preliminary net profit before tax for the first half is expected to land between $87-90 million, lower than the same period last year ($104.8 million), though higher than the preceding half ($74.4 million).
The context: Group CEO and managing director Don Meij said business improvement had been fastest in the Australia and New Zealand market, with customers making more frequent orders and a higher ticket. Meanwhile, the broader business was hit by an 8.9% drop in same-store sales in its Asian markets, with the company saying improvements would be required to grow order volumes.
The source: ASX announcement
