Domino’s Falls, Despite Popularity In NZ

Stuff:

Domino’s Pizza reported a 46.2 per cent fall in first-half profit, despite a strong showing from its New Zealand business.

The pizza maker reported a net profit of A$3.5 million (NZ$3.9 million) for the half year to December 31, down from A$6.5 million for the same period the previous year.

Much of the fall in profit was attributed to costs associated with its aggressive push into Europe.

Chief executive Don Meij said the European division was expected to make its first profit contribution in 2007-08. The group is forecasting the net profit for the second half of the year will be up 40 per cent on the first half. Domino’s total earnings before interest, tax, depreciation and amortisation fell 21.3 per cent to A$9.6 million for the half year.

New Zealand’s ebitda jumped 200 per cent, to A$1.2 million, from A$400,000. This was offset by an ebitda fall of almost 17 per cent in Australia to A$9.8 million.

Mr Meij said the earnings drop in Australia was because of weak promotions, as well as start-up costs from a new in-house maintenance and supply department.

Total revenue was up 36.4 per cent to A$118.1 million.