FX.co ★ Domino's Pizza Group FY23 Underlying Profit After Tax Declines

Domino's Pizza Group Plc has revealed a statutory profit after tax of £115.0 million for a 53-week period. This shows a sharp rise from last year's £81.6 million, primarily due to the disposal of the company's investment in the German associate, which created a non-underlying profit on disposal of £40.6 million. The statutory EPS likewise saw an increase, moving to 27.9 pence from 18.7 pence because of the profit from the disposal. However, the underlying profit after tax was reported at £73.7 million, a decline from 2022's £81.6 million. The 53-week underlying EPS also dipped to 18.4 pence from 18.7 pence because of a decrease in the underlying profit after tax.

In terms of revenue, the company garnered £667.0 million for the 52 weeks leading up to December 24, 2023. This represents an 11.1% hike from the previous year. The revenue for the 53 week period until December 31, 2023, was £679.8 million.

Looking to the future, Domino's anticipates that the underlying EBITDA for the fiscal year 2024 would align with current market expectations.

The Board has suggested a final dividend of 7.2 pence per share. This would result in a full-year dividend of 10.5 pence per share, a 5.0% increase from the previous year.

Furthermore, Domino's Pizza Group Plc announced that it has solidified a sale and purchase agreement to procure the remaining 85% of shares in Shorecal Limited. This franchise business, which is the largest Domino's operation in the Republic of Ireland and Northern Ireland, will be bought from Charles Caldwell, Adrian & Anne Caldwell, and SC Holdings I Ltd (an investment firm managed by Radcliff Management in association with the Bronfman Family Office LLC) for a sum of 72 million euros. Currently, Shorecal runs 34 of the 99 Domino's stores spread across the Republic of Ireland and Northern Ireland.