Interim Results for the 26 Weeks Ended 26 June 2016

28 Jul 2016

Domino’s Pizza Group plc (“DPG” or the “Group”), the leading pizza company in UK and Ireland, announces its results for the 26 weeks ended 26 June 2016.

Financial Highlights1 26 Weeks Ended
26 June 2016
26 Weeks Ended
28 June 2015
Change
System Sales 2
from continuing operations
£494.7m £422.6m 17.0%
UK Like-for-Like Sales 3
from continuing operations
10.9% 10.3%  
Underlying 4 and Statutory Operating profit
from continuing operations
£40.9m £33.9m 20.6%
Underlying and Statutory Basic EPS
from continuing operations
19.9p 16.2p 22.8%
Net (debt)/cash balance (£10.9m) £19.2m  
Dividend per share5 10.5p 9.00p 16.7%
Statutory Revenue 6
from continuing operations
£176.4m £154.5m 14.2%
Statutory Profit After Tax
from continuing operations
£33.0m £26.9m 22.7%

Highlights

  • UK market continues to underpin growth with eleven successive quarters of double digit LFL sales growth
  • Successful new opening store programme
    • Record 31 (2015: 24) stores opened in the period
    • Average sales per address in new stores is 24% ahead of the same period last year
  • Continued success of digital investment programme in the UK
    • e-commerce total system sales ahead by 25% with mobile sales up 35%
    • Mobile sales contribute 62% of online sales
  • Continued increase in franchisee profitability
    • EBITDA performance up from 15.1% to 15.4%7
  • Improving performances in international businesses
    • ROI delivering 12.7% like-for-like sales growth
    • Swiss mature stores showing good growth, with like-for-like sales up 11.7%, and progress in new and immature store portfolio
    • German investment performance in line with expectations
  • Nordic expansion
    • Strategic investment of £24.0m to acquire minority interests in Domino’s Iceland, Norway and Sweden
    • Exciting opportunity in attractive growth markets to further grow the Domino’s brand
    • Transaction is now complete
  • Group underlying operating profit and EPS up by more than 20%
  • Strong operating cash conversion at more than 93% of EBITDA – net debt of £10.9m following £46.6m payments for international investments and £15.3m of share buy backs

Commenting on the results, Chief Executive Officer David Wild, said:

“Domino’s Pizza Group has made a very strong start to 2016 and this performance is reflected in today’s numbers. Our UK operations continue to perform extremely well and we opened a record 30 new stores in the first half. We continue to invest in and develop our e-commerce platform and we are pleased that mobile purchases are driving online sales across the system.

Current trading is encouraging, boosted by the Euro 2016 championships; we have made a sound start to the second half on the year. We face tougher comparatives throughout the rest of the year, but I am confident we shall deliver another good performance right across the group.

Our cash conversion remains very strong and today we can announce a significant increase in the interim dividend. We have delivered a very promising opportunity in Scandinavia and remain open to further international opportunities where we can deploy our know-how alongside carefully selected local partners.

Recently we announced that Rachel Osborne will join the group as an executive director and the Chief Financial Officer of the Company, and we look forward to welcoming her to DPG after the summer. I would also like to thank the DPG team for their continued hard work and pay tribute to our franchisees whose tireless endeavours ensure that our customers continue to enjoy great pizzas with great service every day.”

For further information, please contact:

Domino’s Pizza Group plc:
David Wild, Chief Executive Officer
020 7379 5151

Maitland:
Emma Burdett, Robbie Hynes
020 7379 5151

Numis Securities Limited
Christopher Wilkinson, Richard Thomas
020 7260 1000

A presentation to analysts will be held at 09.00 on 28 July 2016 at the Lincoln Centre, 18 Lincoln’s Inn Fields, London WC2A 3ED

Notes to Editors:
Domino's Pizza Group plc is the leading player in the fast-growing pizza market holding the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK, Republic of Ireland, Switzerland, Liechtenstein and Luxembourg. Additionally it owns a strategic stake in the largest pizza delivery business in Germany and in the holders of the Domino's master franchises in Iceland, Norway and Sweden. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991.

As at 26 June 2016, the Group had the following stores:

  UK ROI Switzerland Total
As at 27 December 2015 869 47 15 931
New store openings 30 - 1 31
As at 26 June 2016 899 47 16 962

Founded in 1960, Domino’s is one of the world’s leading pizza brands. Through its primarily franchised system, it operates a global network of more than 11,000 stores in over 70 international markets. Domino’s has a singular focus – pizza made freshly to order with high quality ingredients.

Customers in the UK can order online at www.dominos.co.uk, in the Republic of Ireland at www.dominos.ie and in Switzerland at www.dominos.ch. In addition, mobile customers can order by downloading Domino’s free iPhone, iPad and Android apps.

For photography, please visit the media centre at corporate.dominos.co.uk, contact the Domino’s Press Office on +44 (0)1908 580654, or call Maitland on +44 (0)20 7379 5151.

1 Continuing operations exclude the results of the fully owned DPG German business which was discontinued during 2015. The attributable German results are shown separately as discontinued operations. 2015 amounts have been restated. Results from international joint ventures (including the German joint venture) are included in continuing operations.
2 System sales represent the sum of all sales made by both franchisee and corporate stores in the United Kingdom, Republic of Ireland and Switzerland to consumers
3 Like-for-like sales are defined as sales from stores that were opened before 28 December 2014, compared to the corresponding 52 week period in the prior year
4 Underlying is defined as excluding amounts in relation to onerous lease provisions, asset impairments, costs of acquisition of joint ventures, associates and subsidiaries, restructuring and one-off items
5 Prior to share split effective 27 June 2016
6 Statutory revenues represent revenues directly attributable to DPG being derived from monies paid by franchisees for foodstuffs together with royalty payments for use of the Domino’s brand, rental income from freehold and leasehold property, and corporate store sales in Switzerland
7 Franchisee data submissions to end of June 2016 based on stores opened before 31 December 2014

 

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