Domino’s announces profit upgrade
Domino’s Pizza Enterprises, Australia’s only publicly listed pizza chain, has announced a surprise update to their profit outlook just over a month after saying they were on track to meet guidance.
Subject to finalising half year accounts, Domino’s “expects to achieve results for the first half FY10 materially above the corresponding first half FY09”, the company said.
“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,” a statement from the company advised. “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.”
At their November AGM the company affirmed guidance for FY10 NPAT growth of 10% to 15%. However, they are now expecting FY10 NPAT growth to be in the region of 15% over the FY09 NPAT of $15.4m.