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Domino's Pizza shares slump after profit fall

Shares in Domino's Pizza have slumped more than 11% after the UK's biggest pizza delivery company reported a fall in profits.
Domino's stock fell more than 32p to 286p in early London trading, hitting their lowest level in almost a year.
Statutory profit fell 9.7% to €41.7m in the first half of the year, compared to €46.2m in the same period a year ago.The company's profits were dented by its investment in international markets, specifically Norway and Sweden, and rising interest payments on its debts. It is also struggling with rising labour costs in Norway.Net debt rose to €182.1m from €61m last year.But despite the fall in profits, chief executive David Wild hailed "another good trading period" for the company."In the UK, despite continued consumer uncertainty, we've achieved further like-for-like growth by maintaining our clear focus on product, service and value for customers.""Whilst our international businesses continue to make good progress with customers and sales, it has taken us some time to refine the operating model and cost base at store level, particularly in Norway."
While some international markets have been a drain on the company, the UK and Republic of Ireland saw sales rise 8.1% to €565.1m.Domino's, which is investing in its technology and online operations to enable customers to track their orders, said it sold 8.2 million pizzas during the World Cup.Hargreaves Lansdown's Steve Clayton said: "On balance, these results will be received with something between grudging acceptance and mild disappointment."Domino's is executing well in the UK with strong growth in sales and resilient earnings.
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"But overseas, where the group has been expanding rapidly through acquisitions as well as new openings, profits have come in below par."The Norwegian business in particular has struggled to keep control of labour costs."
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