Domino’s Pizza roll-out may eat into Taste’s HEPS - CNBC Africa

Domino’s Pizza roll-out may eat into Taste’s HEPS


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Taste will be converting the St Elmo's outlets into Domino's Pizza stores. PHOTOS:

South African based [DATA TAS:Taste Holdings Limited] said it expects HEPS and earnings per share (EPS) for the six months ended 31 August 2014 to be between 3 cents and 3.7 cents, compared to EPS of 5.8 cents and HEPS of 5.7 cents for the 2013 period.

This is due to expected once off and up-front investment costs relating to the group’s Domino’s Pizza roll-out.

(READ MORE: Taste Holdings sets sights on Domino's Pizza)

“These once-off investment costs include costs relating to the store conversions, establishment of a centralised dough production facility and initial training and marketing,” said the group in a statement.

Core EBITDA is expected to be between 1.7 million rand and 2.2 million rand higher than the prior period with core headline earnings estimated to be between 0.8 million rand and 1.3 million rand lower.

(WATCH VIDEO: Taste Holdings FY HEPS up 20% )

Taste's financial results are expected to be released on the 9 October 2014.