Domino’s Pizza update on first half FY10 results

Domino’s Pizza Enterprises Limited (“Domino’s”) advises that, subject to finalising half year accounts, it expects to achieve results for the first half FY10 materially above the corresponding first half FY09. Domino’s expects to announce half year NPAT to 3 January 2010 in the vicinity of $8.5m, an increase of 35% on the first half FY09 NPAT of $6.3m.

 

There were a number of one-off benefits that were gained during the second half FY09, and these need to be considered in the context of second half FY10 earnings. These one-off benefits include a tax rate of 21% (compared to an expected FY10 tax rate of 27%), beneficial FX gains for European earnings, and strong network sales performance resulting from the launch of the new Australian menu in February 2009.

 

This update is a result of achieving strong earnings in Australia/New Zealand in the first five months of FY10.

 

At the Domino’s AGM on 4 November 2009, management affirmed its guidance for FY10 NPAT growth of 10% to 15%. However, Domino’s is now expecting FY10 NPAT growth to be in the region of 15% over the FY09 NPAT of $15.4m.