Domino’s Pizza has taken a hit to pre-tax profit in the first half of the year thanks to the heightened costs of food.
The London-listed company posted profit of £50.9m for the six months to 26 June, a 16 per cent drop in profit versus the previous year.
The firm said it began passing on food cost inflation increases to franchisees during the first half of the year, but would not see the full impact until the second half.
Profitability was expected to be weighted to the second half, the pizza chain added.
“Domino’s scale and integrated supply chain are always key to our success,” Dominic Paul, chief executive officer said.
“As inflation accelerates and consumer budgets tighten, these differentiators are more important than ever. Domino’s is an asset-light, cash-generative, resilient business that is well-placed to navigate the current conditions, which is why we are able to maintain our existing guidance,” he added.
In past economic crunches, Domino’s has “performed well”, the CEO said.
Shares were down by more than two per cent in early trading on Tuesday morning.
More to follow…