Domino’s Pizza Group Plc, the UK franchisee of the U.S.-listed Domino’s Pizza Inc, reported a 16% dive in pre-tax profits for the first half of 2022. The company attributes this decline to rising costs and food inflation. Since the start of the conflict between Russia and Ukraine, two major wheat explorers, the security of supply in the flour market has come into question. The drying up of Russian and Ukrainian exports drove wheat prices up to historically high levels.
Chief Executive Officer Dominic Paul stated that the company will be increasing its media spending in order to fuel more customer engagement. “We will be increasing our media spend in the second half compared to the first half, amplifying our value message to customers as we head into key events such as the men’s football World Cup”, Paul announced.
For the 26 weeks ended June 26, Domino’s Pizza reported sales of 710.5 million pounds ($869.01 million), compared to 752.3 million pounds a year earlier. Profit before tax came to 50.9 million pounds. CEO Dominic Paul is set to depart from the company in December, assuming his role as the head of Premier Inn-owner, Whitbread.