Domino's Pizza Group (DOM) H2 2024 earnings summary

Executive summary

• Achieved growth in order count, like-for-like sales, profits, and dividends in FY2024, with strong operational focus and resilience despite challenging market conditions.

• Strategic progress included the acquisition of Shorecal in Ireland, increased stake in the Northern Ireland JV, and continued investment in digital and supply chain automation.

• Franchisee profitability rose year-over-year, and a new five-year Profit Growth Framework (PGF) was implemented to align incentives and drive long-term growth.

• Completed disposal of London corporate stores, with capital recycled into growth markets.

• Continued focus on portfolio optimization and exploring second brand options.

Financial highlights

• Total system sales up 2.0% year-over-year to £1,571.5m, with like-for-like sales up 0.7%.

• Underlying EBITDA increased 6.4% to £143.4m; underlying EPS up 13.3% to 20.4p, aided by a lower share count.

• Underlying profit before tax up 8.4% to £107.3m.

• Dividend per share increased 4.8% to 11.0p, supported by robust free cash flow generation.

• Net debt increased to £265.5m, with leverage at 1.93x, within the target range.

Outlook and guidance

• FY2025 underlying EBITDA expected to be in line with market expectations, excluding the positive impact of the Victa investment.

• Victa expected to contribute around £3m to underlying EBITDA in FY2025.

• CapEx for FY2025 guided at circa £25m, with focus on supply chain automation, new store openings, and digital innovation.

• Positive trading momentum in the first 10 weeks of FY2025: system sales up 2.4%, total orders up 0.7%, like-for-like sales up 0.7%.