Costs And Interest Rates Drove Domino's Pizza's FY 2022 Pretax Profit Down

In a statement on Thursday, Domino's Pizza Group PLC said that the company's pretax profits for Fiscal 2022 declined due to technology platform costs and interest rates, but had high expectations for profitability in the coming year.

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In the year ended Dec. 25, the pizza chain--the holder of the master franchise agreement for the ownership, operation and franchising of Domino's stores in the United Kingdom, Ireland and throughout Europe--made a pretax profit of 98.9 millions pounds ($117.1 million) in fiscal 2022, which was compared to 109.7 million pounds in fiscal 2021.

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As an underlying basis -which accounts for exceptional and other one-off items - the pretax profit for the year ended January 31, 2018, was GBP98.9 million compared with GBP113.9 million in the year prior.

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In the second quarter of 2017, the company generated GBP600.3 million of revenue, a record year for revenue, primarily due to increased revenue in the supply chain, which was a result of higher food costs.

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A strong quarter for the company was recorded in the fourth quarter of 2022, despite a slowdown in the market as a result of a decline in like-for-like system sales. Trading and market share gains were also seen, with orders of 18.5 million, with total orders up 4.1% and collection orders up 27.9% compared with the same period last year.

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According to a company-compiled market forecast range of GBP124.5 million to GBP147.7 million for fiscal 2023, Domino's expects Ebitda to be GBP137.6 million, excluding GBP9 million of technology platform costs. This is in line with a forecast range of GBP124.5 million to GBP147.7 million that the company has compiled. For the year 2022, adjusted EBITDA was GBP130.1 million and net income was GBP76.7 million.

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According to Domino's, the company will propose a final dividend of 6.8 pence per share, which means that the total dividend for the fiscal year 2022 will be 10.0 pence per share, an increase of 2.0% over the dividend for fiscal year 2021.

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Its shares were down 15.60 pence at 270.0 pence as of 0808 GMT, or 5.5%, from their opening price of 2701.20.