Domino’s swings to FY25 loss on store closures and charges, shares plunge ~20% this morning

South Africa

The Top 40 index lost 0.61% yesterday to close the day at 94,747.1 points, while the All Share shed 0.53% to reach 102,433.2 points. British American Tobacco faces a leadership change as CFO Soraya Benchikh resigns after just over a year, with Javed Iqbal appointed interim CFO. The company remains confident, projecting revenue at the top of its guidance, driven by growth in smokeless products and strong US performance. Meanwhile, the JSE has terminated its contract with Risk Insights and seeks R1.3m repayment following misrepresentation of qualifications. Finance Minister Godongwana suspended GPAA CEO Kedibone Madiehe over alleged misconduct; Job Stadi Mngomezulu assumes acting CEO duties. The GPAA manages nearly R3 trillion in public-sector pension funds.

Europe

European markets closed lower amid political and economic uncertainties. France’s CAC 40 fell 1.7% as opposition parties signalled they would not back the government’s confidence vote on budget cuts, pressuring banks BNP Paribas and Société Générale, down 4.2% and 6.8% respectively. The pan-European Stoxx 600 declined 0.8%, recording its steepest daily fall in nearly a month. Germany’s automotive sector continues to struggle, shedding around 51,500 jobs over the year to June 2025, contributing to nearly half of the 114,000 job losses across the broader German industrial sector, highlighting structural industry challenges.

United States

US markets rebounded as investors looked past President Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook, focusing on corporate earnings and economic data. Consumer confidence declined in August amid a weaker jobs report and tariffs, signalling potential economic slowdown. Analysts expect rising inflation to support the US dollar, while new tariffs are set to impact Indian exports. Despite concerns over Fed independence, major indices closed higher, reflecting investor focus on earnings resilience and macroeconomic fundamentals in a volatile policy environment.

Asia

Asia-Pacific markets were mixed as investors digested China’s industrial profits, which fell 1.5% year-on-year in July, reflecting recovery after previous declines. State-backed firms saw profits decline 7.5% YTD, while foreign-invested enterprises recorded 1.8% growth. Mining profits dropped 31.6%, whereas manufacturing and utilities improved modestly. In Australia, CPI surged 2.8% YoY in July, exceeding forecasts due to electricity price spikes, pushing the trimmed core measure to 2.7% YoY. The Australian dollar recovered above 65 cents, with markets pricing in a likely RBA rate cut in November amid elevated inflation volatility.

Currencies

The US dollar weakened to 98.19 on the DXY index after President Trump attempted to remove Federal Reserve Governor Lisa Cook, raising concerns over central bank independence. The move created volatility in major currency pairs, influencing the euro, yen, and emerging market currencies such as the South African rand.

Commodities

Gold prices surged amid Fed uncertainty and a weaker US dollar, reflecting heightened demand for safe-haven assets. Crude oil prices eased 2% from recent highs following US tariff measures and concerns over Russian supply. Markets continue to weigh geopolitical and policy-driven factors alongside underlying demand trends, supporting elevated volatility in the energy and precious metals sectors. Investors are focusing on the interplay between macroeconomic developments, currency movements, and commodity supply dynamics for positioning in global markets.

Cashbuild Limited (CSB) -0.23%

Cashbuild issued a trading statement ahead of its full-year results to 29 June 2025, due on 3 September. The Group expects earnings per share (EPS) of 1,011.3–1,063.4 cents, a surge of over 100% from 396.4 cents in the prior year, reflecting a strong rebound from last year’s weak base. Headline EPS (HEPS) is anticipated at 1,013.5–1,060.9 cents, up 7–12% from 947.2 cents. The improvement signals resilient trading conditions and margin recovery, though results remain unaudited. Investors will watch for management’s outlook on demand trends, cost inflation, and capital allocation when audited results are released.

Motus (MTS) -0.24%

Motus issued a voluntary trading update ahead of FY25 results due 2 September. Revenue is expected at R112.1–R114.4bn, broadly flat on FY24, while operating profit of R5.45–R5.55bn is in line with last year. Notably, net finance costs declined 12–14%, supporting headline earnings of R2.56–R2.61bn, up 3–5% year-on-year. EPS is guided at 1,450–1,480 cents, while HEPS is seen rising 4–6% to 1,535–1,565 cents. Net debt to EBITDA is projected to improve to 1.4–1.6x from 1.9x, reflecting stronger cash generation. The Group benefited from a rebound in the South African vehicle market, though global macroeconomic conditions remain volatile.

MultiChoice Group Limited (MCG) +0.66%

MultiChoice announced progress on its South African reorganisation linked to Canal+’s mandatory offer. At a general meeting on 26 August, Phuthuma Nathi shareholders approved the required resolutions, a key step in restructuring MultiChoice South Africa Holdings. The reorganisation was mandated by the Competition Tribunal as part of its approval of Canal+’s ZAR125.00 per share cash offer for all MultiChoice shares not already owned. The Group confirmed confidence in meeting the agreed timeline for implementation of both the reorganisation and the offer. Further details on shareholder support levels were provided in Phuthuma Nathi’s results announcement.

Master Drilling Group Limited (MDI) +6.47%

Master Drilling reported interim results for the six months to 30 June 2025, delivering a sharp earnings rebound despite modest top-line growth. Revenue rose 4.9% year-on-year to USD133.2m, while profit after tax surged 399% to USD18.1m, boosted by a partial impairment reversal. Basic EPS climbed 485% to 11.7 cents (USD), with HEPS up 6.7% to 9.6 cents. In rand terms, HEPS advanced 4.7% to 176.6 cents. NAV per share increased 9.6% to 148 cents. The Group highlighted a strong pipeline of USD515m and a committed order book of USD305.6m. No interim dividend was declared, consistent with past practice.

Old Mutual Limited (OMU) +3.82%

Old Mutual released a trading statement ahead of its interim results for the six months to 30 June 2025, due on 10 September. Results from operations are expected to rise 6–26% to R4.5–5.3bn, supported by strong performance at Old Mutual Insure and favourable financial markets. Adjusted headline earnings are projected 19–39% higher at R3.9–4.5bn, aided by robust shareholder investment returns. However, headline earnings and IFRS profit will decline 19–39% and 12–31% respectively, impacted by the functional currency change in Zimbabwe. Share repurchases in 2024 enhanced per-share growth, with results from operations per share up 9–29% and adjusted HEPS up 21–41%.

Woolworths Group Limited (WOW) +2.48%

Woolworths Group reported softer FY25 results as weakness in supermarkets and Big W offset modest revenue growth. Group sales rose 1.7% to A$69.08bn, but normalised profit declined 17.1% to A$1.39bn, with underlying earnings down 19% on slower food sales. Supermarket revenue grew 3.1% to A$51.45bn, though profits contracted by double digits, while Big W swung to a A$35m loss from A$14m EBIT last year. The group also absorbed impairment costs from closing MyDeal. CEO Amanda Bardwell expects profit growth in FY26, supported by cost discipline, food-led strategy and eCommerce momentum. A final dividend of 45c/share was declared, payable 26 September.

Domino’s Pizza Enterprises Limited (DMP) +0.41%

Domino’s Pizza Enterprises posted a statutory net loss of A$3.7m for FY25, reversing a A$92.3m profit, after absorbing A$162.3m in one-off charges from the closure of 312 underperforming stores—233 in Japan—and broader restructuring costs. Excluding these, underlying NPAT fell 2.8% to A$116.9m and EBIT slipped 4.6% to A$198.1m, as group network sales held at A$4.15bn with same-store sales down 0.2%. Shares plunged up to 20% to A$15.55, their lowest since July, as investors reacted to the weak result. The board declared a sharply reduced final dividend of 21.5c per share, prioritising deleveraging and balance sheet repair.

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