Domino’s Pizza posts profit rise
The company improves e-commerce sales.
Domino’s Pizza Group, which operates 748 stores in the UK, the Republic of Ireland and Germany, has posted a profit of £15.37m for the first half ended 24 June 2012, compared to £13.03bn for the same period last year.
Revenue increased by 10.3 per cent to £112.7m, while gross profit was £41.54m . E-commerce sales grew by 43.4 per cent to £121.2m .
Diluted earnings per share were £9.54 , while earnings before interest, taxation, depreciation and amortisation, before exceptionals, were up 10.6 per cent to £24.2m.
Sales made by franchisees from all stores in the UK, Republic of Ireland and Germany to the public (system sales) increased by 11 per cent to £286.9m.
During the period, the company opened 23 new stores with one closure and have a full pipeline for the coming half. The company created over 600 new jobs in stores.
Like-for-like sales “(LFL) in the UK increased 5.7 per cent, while LFL sales in the Republic of Ireland, in euros, up by 2.9 per cent. Online system sales grew by 43.4 per cent to £121.2m.
Like-for-like sales are sales in stores that were open before 26 December 2010, excluding stores in Germany.
Lance Batchelor, CEO of Domino’s Pizza Group, said: “I am delighted to be able to report such a strong set of half year results. Coming on top of a solid start to the year during the first three months of 2012, we have delivered like-for-like sales growth of 5.2 per cent across the system in the first half.
“In addition, it has been a very busy and successful first half for our emerging German business with four new stores opened. Our franchisees have made the most of the opportunities presented by a combination of rain, sport and national celebrations and delivered some great figures during the second quarter.
“The coming months should provide a real opportunity for our business. We have great new locations coming into play in the UK, our 1-2-1 marketing programme is showing encouraging returns and the opportunity in Germany is looking better by the day. Add to this the best franchisees in the business and the future looks bright.
“Trading since the half year end has continued in line with our expectations. While the consumer backdrop remains tough we are confident about the future and our expectations for the year as a whole remain unchanged.”