Domino’s Pizza reported a 16% drop in first-half pre-tax profit after rising food costs and inflation, while it said it had increased media spending in the second half in a bid to attract more customers.
Shares of the company, which has fallen 30% since the start of the year, are 1.9% lower.
The conflict between Russia and Ukraine, two major grain exporters, has driven up global wheat prices and raised concerns about grain prices and flour supply concerns.
Energy prices have also risen, with negative effects on inflation in the economy.
The CEO emphasized that the company is better positioned than many to deal with cost increases because of its strong supply chain.
Despite the fall in profits, it increased the dividend to 3.2p from 3p the previous year, while launching a £20m share buyback programme.
The drop in underlying pre-tax profits to £50.9m in the first half echoes the difficulties facing the company, which last week reported lower-than-expected profits due to higher costs.
Source: Capital
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