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Time of India
02-07-2025
- Business
- Time of India
Domino's Australia franchise CEO steps down
HighlightsMark van Dyck, the Chief Executive Officer and Managing Director of Domino's Pizza Enterprises, will step down before Christmas this year, causing the company's shares to plummet approximately 16%. In his eight months in charge, Van Dyck implemented cost-saving measures and closed low-volume stores as the company faced declining sales in a post-COVID environment. Domino's Pizza Enterprises is beginning a global search for a new Chief Executive Officer, with Chairman Jack Cowin stepping in as the interim executive chair. Domino's Pizza Enterprises said on Wednesday its CEO and managing director, Mark van Dyck , would step down before Christmas this year, sending the Australian franchise operator's shares plummeting about 16% to their weakest in over 11 years. Van Dyck, a former Coca-Cola executive, took over from the franchise operator's longstanding head, Don Meij, in November last year as the company struggled to maintain sales in a post-COVID era. In eight months, Van Dyck laid the groundwork for a turnaround, closing low-volume stores and initiating cost-saving measures. His departure, effective December 23, sent the stock spiralling. Shares ended 15.8% lower at A$16.96 apiece, their lowest since February 2014, and logged their worst session since late January 2024. The stock was the second biggest loser in the ASX 200 benchmark on the day, and has lost 90% of its value since scaling an all-time high in September 2021, when pizza sales surged and the company was mapping out expansion plans for the coming decade. "A new CEO will take some time to appoint, raising the risk (of an) extended period of sub-par execution and lost earnings and further talent loss," said John Lockton, head of investment strategy at MST Financial. The company's underlying profit declined 8% in 2024 and was 36% below its record 2021 profit . A consensus of analyst estimates forecasts an 85% slump in fiscal 2025 profit, per Visible Alpha. The board has begun a global search to replace the incumbent CEO, the firm said. Chairman Jack Cowin, who has over five decades of experience in the quick-service restaurant sector and is the company's largest shareholder, will assume the role of interim executive chair . Cowin was one of the founders of KFC in Australia and played a key role in Domino's expansion into Europe and Asia. Domino's Pizza Enterprises runs the largest master franchise of the U.S.-based Domino's Pizza in 12 countries across Asia, Europe, Australia and New Zealand. Japan accounts for around a fifth of its stores.
Sky News AU
25-06-2025
- Business
- Sky News AU
‘Drastically increase network costs': Top energy expert says Victorian gas bans to hurt small businesses and shrink manufacturing capabilities
Top energy experts have condemned the Victorian Allan government's sweeping gas bans arguing that as households are weaned off the system manufacturers and small businesses will consequently bear the brunt of the rising costs to extract gas. The Allan government announced on Tuesday it would move to scrap its policy to force owner-occupiers to switch from gas heating to electric systems when they expire after receiving intense backlash from consumers and industry magnates. The Victorian government unveiled a number of measures in 2023 which sought to phase out the use of gas in the state, yet has since softened multiple pieces of the policy. The draft plans would have forced hundreds of thousands of Victorians still reliant on gas heaters and cooktops to shift to electric models as part of the government's net zero emissions pathway. However, the government is continuing to persist with numerous elements of the policy raising the ire of energy analysts. These include requiring all gas hot water systems to be replaced with electrical alternatives once they break down and all new homes and commercial buildings having to be built completely electric from 1 March 2027. While Premier Allan claimed the move would push down household electricity bills, Senior Energy Analyst at MST Financial Saul Kavonic said that despite minor amendments being made, the policy would significantly reduce the states manufacturing base which is already at record lows. 'What is telling in this backtrack in Victoria and a big part of it is what's starting to dawn on the Victorian government is if they actually were successful in going down their path of reducing gas usage for heating, what it actually does is it starts to drastically increase the network costs on the manufacturing base,' Mr Kavonic said. Mr Kavonic who has worked in the sector for over 15 years said that the remaining manufacturers in the state would 'then have to cover a much larger portion of that fixed infrastructure amortisation,' as the cost of gas became more expensive as demand decreased. 'You'll see an even further hastening of the deterioration of the manufacturing and small business sector in Victoria,' Mr Kavonic reiterated. Energy analysts outlined that if hundreds of thousands of homes were swapped over to electricity-based services, then the grid would be overloaded in the short term, potentially putting the viability of the entire system at risk. The government back down delayed all changes to energy rules which were set to commence next year to March 1, 2027. Victoria faces crippling gas shortages by 2029 according to the Australian Energy Market Operator as existing supplies in the Bass Strait have dried up. Mr Kavonic said the government's alternating position risked threatening investment in critical gas exploration projects further. 'A lot of industry folks over the last 12 hours have been questioning if the energy minister in Victoria Lily D'Ambrosio has effectively been overruled by her own party in this, because she's been one of the biggest advocates of demonising gas use and getting our customers off gas,' he said. 'What's really important is if Victoria actually wants to fix their gas supply security issue they need to have a very clear statement backed up by actions that they see a role for gas in the future.' Mr Kavonic said the appetite for investment into gas security was "still not going to return" given the Allan government was "ultimately sitting on the fence here and only partly walking it back". The government says that by 2029 there will be a reduction of 12 petajoules of gas in every household and business which they argue will help fuel industrial capacities.
AU Financial Review
20-06-2025
- Business
- AU Financial Review
Kennett calls for Vic Libs clear-out, questions Battin's leadership
Former Victorian premier Jeff Kennett has questioned opposition leader Brad Battin's capacity to lead the moribund state Liberals to government and called for a wipe-out of the parliamentary team, opening a fresh battle within the division already reeling from the fallout between MPs John Pesutto and Moira Deeming. Kennett made the comments at a private event hosted by MinterEllison and MST Financial on Thursday night, just as the Victorian Liberal Party's powerful administrative committee voted to provide Pesutto with a $1.55 million loan to help him repay his legal bills to Deeming.
Sky News AU
17-06-2025
- Business
- Sky News AU
Treasurer Jim Chalmers warns Australians of 'perilous' threat to fuel prices over escalating Iran-Israel conflict
Treasurer Jim Chalmers has warned Australians could face a 'perilous' threat to fuel prices as global supply chains are at risk from the heated Iran-Israel conflict. Crude oil is up more than 10 per cent over the past week since Israel attacked oil facilities in Tehran and the South Pars gas field before the Islamic Republic retaliated. Concerns have also grown that Iran will block the Strait of Hormuz - the narrow waterway between the Persian Gulf and the Gulf of Oman - which facilitates the transportation of about a fifth of the world's oil. Mr Chalmers stressed the turmoil in the Middle East could add to stringent price pressures Australians already experience when they visit the bowser in the future. 'It's a perilous moment for the Middle East, but also a perilous moment for the global economy,' he told Sky News. 'The starkest way that we see the impacts of what's happening is with the oil price. Last Friday, the oil price jumped almost 11 per cent. 'This has big implications for the global economy. It has implications for inflation but also for global growth at a time when the global environment was already very uncertain.' Pressed on whether Australians would see the ramifications of this at the bowser, Mr Chalmers conceded drivers would see 'volatility' with prices. 'It's hard to imagine that any day-to-day movement in markets will be permanent,' the Treasurer said. 'We're seeing mostly volatility in the oil price. We're seeing the gold price shoot up because that's where people invest when times are uncertain. 'What that means for us is the potential of higher petrol prices usually takes a couple of weeks before the international barrel price reaches the bowser price in the suburbs and towns of Australia.' Mr Chalmers said the government had concerns about the upward pressure on petrol prices if the Israel-Iran conflict were to further deteriorate and impact sea lanes around the Middle East. He also ruled out making any changes to the fuel excise, a major promise that former opposition leader Peter Dutton took to the recent election. "We haven't changed our position on the fuel excise," Mr Chalmers said. "We've already seen a lot of volatility in petrol prices. In some parts of Australia people must have been - 12 months ago, 18 months ago - paying $2.40 at the bowser in lots of places. "That got down to $1.50, $1 60." MST Financial senior energy analyst Saul Kavonic on Monday said there were major concerns about how the conflict would escalate. 'The risk here is twofold: One, could we see Israel directly attack Iranian exports, for example, on Kharg Island, which could take one and a half million barrels a day off the market,' Mr Kavonic told Sky News' Business Now. 'But also, could we see Iran target Western oil interests in Gulf States such as Iraq, which could also knock a few million barrels a day off the market. 'Just in that kind of scenario, you could see oil approach $100 a barrel.' Israel launched Operation Rising Lion early on Friday, targeting key Iranian nuclear and military sites and reportedly killing dozens of people, including top army commanders and atomic scientists. In the days since, Iran has hit back by launching dozens of rockets and drones at Israel.
Sky News AU
16-06-2025
- Business
- Sky News AU
Iran-Israel conflict could create 'energy crisis we've not actually seen before', MST Financial's Saul Kavonic warns
Aussie drivers could face soaring petrol prices, adding to intense cost of living pressures, as the heated conflict between Iran and Israel may threaten global supply chains. Concerns have mounted Iran will block the Strait of Hormuz - the narrow waterway between the Persian Gulf and the Gulf of Oman which facilitates the transportation of about a fifth of the world's oil. Alongside this, Israeli attacks on oil facilities in Tehran and the South Pars gas field has sparked further concerns over prices. Oil jumped about US$7 per barrel on Thursday evening (US time) after the conflict began. MST Financial senior energy analyst Saul Kavonic said the recent jump was a 'risk premium' as the initial strikes had only targeted each nations' domestic energy infrastructure, but stressed there were major concerns about how the conflict would escalate. 'The risk here is twofold: One, could we see Israel directly attack Iranian exports, for example, on Kharg Island, which could take one and a half million barrels a day off the market,' Mr Kavonic told Sky News' Business Now. 'But also, could we see Iran target Western oil interests in Gulf States such as Iraq, which could also knock a few million barrels a day off the market. 'Just in that kind of scenario, you could see oil approach $100 a barrel.' He said the 'most severe scenario' was if Iran shut down the Strait of Hormuz, as it would create an 'energy crisis such that we've not actually seen before'. 'It would exceed the extremes we saw in the wake of the Ukraine War in 2022 and the reality is our energy markets globally have low resilience,' Mr Kavonic said. 'Strategic stocks, particularly in the US, are at record low levels and we're not well placed to actually deal with a major supply disruption like that, if it was to occur.' AMP's chief economist Shane Oliver issued a note on Friday warning Aussie drivers could soon see price hikes when they fill up their cars. 'Oil prices were already rising this month on signs of increasing risks and spiked another seven per cent after the attacks – with the rise so far this month threatening a flow on of around 12 cents a litre for Australian petrol prices if sustained at these levels,' he said. NRMA spokesperson Peter Khoury said it was not clear exactly how much more Aussies would be forced to fork out at the bowser as the situation in the Middle East constantly changes. 'It's impossible to forecast what it's going to mean at the bowser,' he said. 'A jump of $7 a barrel, if that was to stay the way it is, that's equivalent to about six or seven cents a litre, but the Aussie dollar has also strengthened, so that negates some of that increase. 'It's really difficult to get a sense of what it is going to means at the bowser.' The price rise will also depend on which city Aussie drivers live in, as the oil price follows its price cycle in each city, Mr Khoury said. 'It depends on where you live, but the trend has been for it to be falling - short of what happened last Friday with the kick-off of hostilities between Israel and Iran,' he said. 'How that plays out over the next few days will ultimately decide what sort of impact it'll have at the bowser.' Israel launched operation "Rising Lion" early on Friday, targeting key Iranian nuclear and military sites and reportedly killing dozens of people, including top army commanders and atomic scientists. In the days since, Iran has hit back by launching dozens of rockets and drones at Israel.
