Domino's sees sales and profits rise

Domino's Pizza said today first-half pretax profits increased 33 per cent before exceptionals £10.9 million, compared with £8.2 million over the same period last year.

Overall sales grew by 19.5 per cent to £170.2 million in the period ending June 29th. Domino's does not publish separate profit figures for its 37 stores in the Republic from its total of 526 outlets in Britain and Ireland.

Stronger sales helped Domino's to step up its marketing by increasing the size of the portion of revenue paid into a common advertising fund by franchised stores.

Domino's chairman Stephen Hemsley observed that many people were opting to stay in. "Once these consumers have decided to stay at home, Domino's has the opportunity to serve them".

"Although we are mindful of the very strong comparatives in the second half of the year, we are confident of further strong growth in system sales and profits and are well placed to exceed market expectations for the year."

He also said "modest" price increases will probably be required early next year to compensate for higher ingredient and energy costs.

The company confirmed its target of adding 50 new outlets for the year, adding that it had opened 25 during the first half. In February Domino's said it planned to open seven new stores in the Republic, three of which have already opened. It has 12 outlets in Northern Ireland.

First-half internet sales surged 85 per cent to £25.3 million and now accounts for 22 per cent of pizza delivery sales.

Domino's had 525 stores at the end of the first half and has stated it plans to have 1,000 outlets. The company, which moved from AIM to the main market of the London Stock Exchange in May this year, is paying an interim dividend of 2.7 pence, up 42 per cent.

Domino's operates under licence in the UK and Ireland. Globally, Domino's has more than 8,000 outlets in 50 countries.

Additional reporting Bloomberg/Reuters