Domino's profits fall as wheat prices rise

Domino's Pizza Group reported lower interim profits as the rising cost of wheat started to impact sales.

The company on Tuesday said pre-tax profits fell 16% to £60m in the first six months, while system sales were down to £710.5m from £752.3m.

The war in Ukraine, which is one of the world’s largest wheat growers, has hit exports of the commodity, with knock-on impacts on flour supply.

Domino's said profitability was forecast to be weighted to the second half as it maintained annual guidance.

"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," said chief executive Dominic Paul.

Paul will leave his post in December to join as the head of Premier Inn-owner, Whitbread.

Reporting by Frank Prenesti at Sharecast.com