By Shanima A
-The British franchisee of pizza chain Domino’s is anticipating extra value inflation this yr and has hedged itself towards wheat costs which have soared in response to the battle in Ukraine, it mentioned on Tuesday.
Domino’s Pizza Group Plc, a franchisee of U.S.-based Domino’s Pizza Inc, sources its wheat from the UK and Germany, and is hedged towards wheat worth inflation for almost all of 2022, Chief Government Dominic Paul mentioned in an interview.
Russia and Ukraine account for 29% of the world’s wheat exports and their battle has pushed wheat costs to multi-year highs on provide issues.
“We purchase (wheat) in scale, which suggests we have already got good, sturdy relationships with our key suppliers,” Paul mentioned. “I believe we're higher ready than most to mitigate a few of these inflationary pressures.”
The chain was already hedged towards wheat worth inflation previous to the Ukraine battle, and has continued that technique, Paul mentioned.
Domino’s Pizza additionally unveiled a 46 million-pound ($60 million) share buyback programme. It reported a 12.5% greater annual revenue, helped by a advertising marketing campaign that boosted post-lockdown gross sales.
The corporate’s media and TV advert marketing campaign, focusing on households and associates reuniting after coronavirus lockdowns, in addition to England reaching the ultimate of soccer’s European Championship in July, helped increase orders, Domino’s mentioned.
The pizza firm additionally mentioned 2022 earnings ought to fall consistent with present market expectations, including that its first-quarter buying and selling had “began properly”.
Shares of Domino’s had been down 2.6% at 340 pence by 0910 GMT.
Elsewhere, widespread British baker and quick meals chain Greggs mentioned prices of uncooked supplies, vitality and employees wages had been rising extra considerably than it had anticipated, and that this may restrict any materials revenue development in 2022.
($1 = 0.7642 kilos)
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