Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — H1 FY25 Earnings Presentation
38 slides from Domino's Pizza Enterprises's earnings presentation, Feb 26, 2025
Slide 1: ASX market presentation cover letter for half-year ended 29 December 2024
Domino’s Pizza Enterprises Limited 1/485 Kingsford Smith Drive Hamilton, QLD, Australia 4007 ACN: 010 489 326 www.dominos.com.au 25 February 2025 The Manager Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Market presentation for the half-year e
Slide 2: Domino's Pizza Enterprises Limited (DPE) Period Ending 29 December 2024
Asia Pacific | Europe Domino’s Pizza Enterprises Limited (DPE) Period Ending 29 December 2024
Slide 3: Agenda
2 ▪ Overview and Strategy Update – Mark van Dyck ▪ Half Year Results – Richard Coney ▪ Outlook and conclusion – Mark van Dyck ▪ Questions
Slide 4: Half-year results headline metrics
(1,2) 3 NETWORK SALES GROWTH (vs. H124) UNDERLYING NPBT ($84-86m per February trading update) - 65.0% -23.0% UNDERLYING EBIT GROWTH (vs. H124) 1) Underlying Performance – excluding Non-Recurring Items; see slides 15, 25 & 26 for further details 2) Free Cash Flow and Net CAPEX – excluding payments re
Slide 5: Our strengths, opportunities and challenges
4 Our strengths Our Opportunities Our challenges ▪ Market leader in key markets, with strong in- ▪ Pizza growing globally and ▪ Post-COVID complexity store team and culture resilient and inflation affecting unit economics ▪ Large and attractive ▪ Simplicity will drive cost markets with further reduc
Slide 6: Driving portfolio profitability and stronger customer proposition
5 01 Driving portfolio Stronger profitability customer proposition – Growing share, creating – rising brand relevance and capacity to invest for NPS, supported by food, 05 growth value and experience 02 Expanding store SSSg rising network comparable sales growth – strong demand from at or above peer
Slide 7: Franchise partner EBITDA and unit economics
6 ▪ Group Franchise Partner 12-month rolling EBITDA +13.7% higher than prior corresponding period ▪ Group EBITDA growth primarily driven by a combination of higher sales and a reduction in Food and Labour percentages ▪ We have experienced strong EBITDA growth across large parts of Europe and robust
Slide 8: Early wins and rapid top-line and bottom-line initiatives
7 Early wins In planning Rapid top-line and bottom-line initiatives Detailed review to focus on simplification including: underway to provide fuel for growth ▪ Customer proposition ▪ Cost base Cost efficiencies and store optimisation ▪ Franchise operations delivering >$34m network savings ▪ Roadmap
Slide 9: Value, quality food and experience
8 VALUE QUALITY FOOD EXPERIENCE ▪ Enhancing marketing ▪ Improved product pipeline ▪ Accelerating digital change effectiveness: compelling ▪ Expand core occasions and conversion value through price and and reach more customers ▪ Refocus technology spend promotions ▪ Rigorous testing on new on convers
Slide 10: Store optimisation and cost efficiency benefits
9 As advised at the trading update on 7th February: ▪ Store Optimisation benefits are estimated to be $15.5m on an annualised basis, including benefit arising from closing 205 loss-making stores (172 in Japan) and accelerating of Franchising, with a one-off cost of circa $97m (~$37.4m cash component
Slide 11: Trading update
10 Prior corresponding period +3.8% NETWORK SALES GROWTH excluding FX (1,2) Prior corresponding period +3.0% (1) SAME STORE SALES ▪ Today’s trading update reflects continued momentum that improved through H1 ▪ As advised on 7th February, the 5-week update benefited from the timing of seasonal holida
Slide 12: A Simpler, More Consistent Domino's
11 ▪ First half performance demonstrates the resilience of our franchise business model in a challenging environment ▪ We understand the issues and are developing a clear plan to build a Simpler, More Consistent Domino’s ▪ Early wins: execution of initiatives to improve top line and bottom line is u
Slide 13: Asia Pacific | Europe
Asia Pacific | Europe
Slide 14: Group half-year results summary
13 ▪ Network Sales -2.9% vs. Last Year (-1.6% in constant currency) (1) ▪ EBIT -6.7% vs. Last Year (1) (-5.8% in constant currency) ▪ NPAT -5.7% vs. Last Year (1) (-5.3% in constant currency) - ▪ Interim Dividend: 55.5 cents per share (unfranked); fully underwritten 65.0% -23.0% DRP continues for H1
Slide 15: EBIT by region
14 ▪ Group EBIT -6.7% vs. Last Year (1) (-5.8% in constant currency) ▪ ANZ EBIT +7.6% vs. Last Year ▪ Europe EBIT -11.1% vs. Last Year (1) (-10.0% in constant currency) ▪ Asia EBIT -19.0% vs. Last Year (-16.2% in constant currency) (1) ▪ Global EBIT -32.6% vs. Last Year (+7.6% lower than preceding h
Slide 16: Non-recurring items
15 Non-Recurring Items are $44.2m, relating to: Group Non-recurring Items - $m (1) H1 25 Actual Store Optimisation Programs $92.2m Impairments and write-downs $11.3m Streamlining of Operations $6.6m Litigation & other $5.5m Group Restructuring Costs Total $115.6m 1) See slide 26 for further details
Slide 17: Group cash flow
16 This slide contains the following visuals: CF Grid ,slicer ,Button Adj Other Filters ,slicer ,Group - FY25 Half Year Cash Flow ,Currency ,advancedSlicerVisual ,shape ,CF Header ,shape ,Bttn - Hide Header ,actionButton ,Custom Header ,slicer. Please refer to the notes on this slide for details Gro
Slide 18: Capital expenditure
17 ▪ H1 25 Net CAPEX excluding acquisitions $32.7m (H1 24 $42.5m) ▪ CAPEX which Recycles -$1.5m (H1 24 $11.8m) $(1.5)m ‒ Gross CAPEX $9.5m (prior-year $47.1m), including investment in new $6.5 m corporate stores, franchisee loans for new and existing stores and franchisee acquisitions ‒ Cash inflows
Slide 19: Net leverage and liquidity
18 (1) FINANCIAL RATIOS NET LEVERAGE ▪ Organic net debt reduction of $31.4m was offset by $46.4m in unfavourable (exl AASB16) foreign exchange translations ▪ Capital expenditure reduced by $9.8m vs H1 24, and remains below historical levels ▪ Fully underwritten Dividend Reinvestment Plan, which will
Slide 20: Slide 20
Slide 21: Outlook and current trading
20 ▪ Sales momentum improved through H1 and continued into this Half: ▪ ANZ: Domino’s continues to win share in Australia and has positive sales in H2, although NZ is in a challenging macro environment ▪ Europe: Europe improved performance through H2 with positive SSS, although France remained negat
Slide 22: Roadmap to long-term full potential
21 ▪ A roadmap to reach DPE’s long-term full potential is being developed ▪ This will include an updated algorithm of SSSg + new store openings ▪ Near-term focus is on improving franchise partner profitability to deliver on this potential ▪ Organic growth will occur through existing franchise partne
Slide 23: Slide 23
Slide 24: Appendices
4 | Appendices ie \ : aE ~ . 2 : # | mA 4 -
Slide 25: New same-store sales methodology
24 Old SSS vs. New SSS Variance New SSS methodology reflected in future reporting, with comparisons provided in FY25 H1 25 Country/Region NEW OLD DIFF Same-store Sales (SSS) methodology has been simplified, resulting in more stores ANZ 0.51% 0.58% (0.07%) being included as “same-store”, with c. 95%
Slide 26: Reconciliation: statutory profit to underlying, H125
25 (1) Reconciliation – Statutory profit to Underlying – h125 1) H125 Underlying Profit and Non-Recurring Items (Significant Charges). See slide 26 for further details on Non-Recurring Items
Slide 27: Non-recurring items detail
26 Group Non-recurring Items - $m H1 25 Actual Store Optimisation Program FY25 $80.6m Non-Recurring Items are $44.2m, relating to: Store Optimisation Program FY23/FY24 $11.6m Impairments & Write-downs $11.3m Streamlining Operations $6.6m Group Restructuring Costs Total $110.1m Finance & Supply Syste
Slide 28: Group balance sheet
27 This slide contains the following visuals: slicer ,slicer ,Bttn - Hide Header ,Button Adj Other Filters ,Group - FY25 Half Year Balance Sheet ,Banner ,Currency ,advancedSlicerVisual ,Header - Last Hf ,Header - Crrt P ,pivotTable , ,actionButton ,slicer. Please refer to the notes on this slide for
Slide 29: Net leverage covenant
28 (1) 1) The Group obtained agreement from its lenders for a temporary increase in its Net Leverage covenant to 3.5x, from 3.0x, for both H124 and Full Year FY24 reporting periods
Slide 30: Underlying basis excluding non-recurring items
(1) 29 1) The above are presented on an Underlying basis, excluding Non-recurring Items
Slide 31: Balance sheet and P&L
30 Balance P&L Balance P&L Balance P&L Sheet Sheet Sheet
Slide 32: Group network store count
This slide contains the following visuals: Region Store Count ,Network Store Count ,Region Store Count as Share of Network Store Count ,Table ,slicer ,slicer ,Button Adj Other Filters ,Banner ,card ,advancedSlicerVisual ,New MPK Stores ,*. Please refer to the notes on this slide for details 31 GROUP
Slide 33: Network sales, sales growth and store count
(1,2) 32 NETWORK SALES SALES GROWTH NETWORK STORE COUNT EXISTING AND NEW STORE SALES 1) FX translation headwind has been removed from the above by re-translating current period and prior-periods using FY24 FX rates 2) Where applicable, prior-period Online Sales and Online Sales Growth figures have b
Slide 34: Network sales, sales growth and store count
(1,2) 33 NETWORK SALES SALES GROWTH NETWORK STORE COUNT EXISTING AND NEW STORE SALES 1) FX translation headwind has been removed from the above by re-translating current period and prior-periods using FY24 FX rates 2) Where applicable, prior-period Online Sales and Online Sales Growth figures have b
Slide 35: Network sales, sales growth and store count
(1,2) 34 NETWORK SALES SALES GROWTH NETWORK STORE COUNT EXISTING AND NEW STORE SALES 1) FX translation headwind has been removed from the above by re-translating current period and prior-periods using FY24 FX rates 2) Where applicable, prior-period Online Sales and Online Sales Growth figures have b
Slide 36: Half-year key metrics in constant currency
(1,2) 35 This slide contains the following visuals: slicer , ,Bttn - Hide Header ,Button Adj Other Filters ,Last EOFY Rates ,FY25 Half Year Key Metric Appendices ,Currency ,Banner ,advancedSlicerVisual ,actionButton , . Please refer to the notes on this slide for details 1) FX translation headwind h
Slide 37: Half-year key metrics including FX translation
(1,2) 36 This slide contains the following visuals: slicer , ,Bttn - Hide Header ,Button Adj Other Filters ,Text box - Rate Type ,FY25 Half Year Key Metric Appendices ,Currency ,Banner ,advancedSlicerVisual ,actionButton , . Please refer to the notes on this slide for details 1) Including FX transla
Slide 38: Disclaimer
37 ▪ Domino’s Pizza Enterprises Limited (Domino’s) advises that the information in this presentation contains forward looking statements which may be subject to significant uncertainties outside of Domino’s control ▪ DPE does not undertake any obligation to provide recipients of this presentation wi
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