Domino's Pizza shares fall 10% as interest and tech costs bite  

In Ireland, the company's earnings statement includes its investment in a new supply chain in Naas and notes  the extension of the lower Vat rate of 9% on hot takeaway food 

Domino's Pizza expects underlying core profit to be within market expectations of €155m.

The London-listed shares in Domino's Pizza, which operates outlets in Britain and Ireland, fell as much as 10% as the company's 2023 outlook disappointed due to higher interest costs and investments in technology.

The company said it expects underlying core profit this year to be within market expectations for £137.6m (€155m), excluding about £9m from investments in two new cloud-based IT systems. London-listed Domino's is a franchisee of US-based Domino's Pizza Inc. 

Domino's reported 2022 underlying core profit of £130.1m compared with £136.4m in the previous year. Reported revenue rose 7% to over £600m.

The brokerage also highlighted that Domino's expects underlying interest charges to come in the range of £15m to £18m this year, compared to its own estimate of £12m.

Domino's interim chief executive Elias Diaz Sese said the group's collections business is benefiting as more buyers collect their orders and seek to cut down charges from deliveries.

In Ireland, the earnings statement includes its investment in a new supply chain in Naas, Co Kildare.

It also noted the extension of the lower Vat rate of 9% on hot takeaway food to September, when the rate goes back up to 13.5%. 

• Reuters and Irish Examiner