GROUP - EBIT PERFORMANCE - PRE COVID TO NOW
Domino's
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GROUP - SHORT-TERM HEADWINDS
LOWER THAN ANTICIPATED SSS AND PASS-THROUGH OF INFLATION AFFECTED EARNINGS
Response to inflation - Domino's acted to offset rapidly increasing inflation, including through price rises
■ After multiple buy cycles some of the initial positive effect unwound in December, largely in delivery
Higher delivery pricing (including service fees and higher bundles) reduced delivery customer acquisition and retention
Customer counts have not met expectations since December, especially in Europe and Asia, lowering store profitability
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December EBIT was particularly impacted in Japan due to the large number of Corporate stores, especially our
immature stores in regional locations
■ Pricing strategies are currently being worked through, with DPE continuing to balance its Value Equation
■ Warehouse Earnings - impacted by lower than anticipated volumes & delayed pass-through of higher COGS
■ FX headwinds - c. $5m NPAT for H1, with the AUD strengthening against both the Yen and Euro
■ One Fewer Trading Week - H123 included one less trading week than H122 (26 weeks vs. 27 weeks)
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