Domino’s just posted a big miss

A Domino’s pizza branch in Calais, northern France. Philippe Huguen/AFP/Getty Images

Domino’s Pizza today posted a record full year underlying net profit after tax of $118.5 million, a 28.8% jump but below its own guidance of 32.5%, due in part to problems with operations in France.

Sales were up 18% to $2.3 billion and 8% on a same store basis. Statutory profit was up almost 25% to $102.9 million.

Australia and New Zealand recorded a fourth consecutive year of double digit sales growth at 16.6% and 13.6% on a same store basis, Europe was up 26.9% and 2.8% on same store basis, and Japan lifted network sales 8.4%, down 0.6% on same store basis.

Shareholders will get a dividend of 44.9 cents a share, 50% franked, bringing the full year payout to 93.3 cents, up 26.9%.

CEO Don Meij says the company achieved records but didn’t reach all targets.

“We significantly lifted sales, revenue, EBITDA and margins for the group, which demonstrates that we are leveraging our competitive advantages,” he says.

“I acknowledge our results, while strong, did not reach the guidance we set. This was largely due to the delay in rectifying some issues with our online platform in France, and the initial response in H2 to our value range offering in France, which did not meet our expectations — both have now been addressed.

“We set high standards and we did not reach those high standards. I am confident we have the right strategy, and structure, in place — this has delivered, and will continue to do so, increasing sales and improving profitability in what is a high-growth business.”

He says Domino’s is confident in its multi-region strategies. The 2018 guidance of if for growth of net profit after tax of about 20%.

The 2017 results in detail:

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