Domino’s Pizza Enterprises Limited (ASX:DMP) Announces H1 2025 Trading Update
Financial Performance
Domino’s Pizza Enterprises Limited expects H1 2025 underlying NPBT between $84m and $86m, within its guidance range. Net debt increased by $15m to $705.1m, with an underlying reduction of $31.4m offset by $46.4m in foreign exchange translations, remaining comfortably below banking covenant thresholds.
Strategic Initiatives
A comprehensive strategy review is underway, focusing on delivering a value creation plan and enhancing performance in key markets, including Japan and France. The company has identified $18.6m in annualised network savings through cost efficiencies.
Store Closures in Japan
Domino’s will close 205 loss-making stores, including 172 in Japan, to sharpen market focus and improve profitability. These closures are expected to generate $10-12m in annualised EBIT uplift, with one-off restructuring costs of approximately $97m.
Dividend Declaration
The company intends to determine a 55.5 cent per share interim dividend, unfranked, subject to a fully underwritten Dividend Reinvestment Plan (DRP). This maintains the prior year’s dividend.
Executive Comments
Group CEO & Managing Director Mark van Dyck stated, “When I started in this role three months ago I said we would move decisively to reshape our business for long-term success. Where change is required, we are acting quickly and transparently. Our priority remains clear—creating value for customers, franchise partners, and shareholders.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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