Domino’s Pizza Group plc (“Domino’s”, “DPG”, the “Company” or the “Group”), the leading pizza delivery company, announces its results for the 26 weeks ended 29 June 2014.
Financial Highlights
- System sales1 increased by 14.9% to £375.0m (2013: £326.5m)
- Continued strong operating margin2, excluding Germany and Switzerland, of 21.7% (2013: 21.2%)
- Operating profit2, excluding Germany and Switzerland, increased 15.3% to £29.8m (2013: £25.9m).
- Operating profit, including Germany and Switzerland, after exceptional items, was £24.3m (2013: £10.1m)
- Group profit before tax2 increased 10.1% to £24.5m (2013: £22.2m).
- Strong growth in like-for-like sales3 in core UK & Ireland businesses:
- UK up by 11.3%
- Republic of Ireland (“ROI”), in Euros, up by 3.2%
- Germany, in Euros, declined by 1.7%
- Switzerland, in Swiss Francs, up by 2.9%
- Earnings per share2;
- Basic earnings per share up by 7.4% to 11.6p (2013: 10.8p)
- Diluted earnings per share up by 7.5% to 11.5p (2013: 10.7p)
- Interim dividend increased by 10.0 % to 7.81p per share (2013: 7.10p)
- Strong net cash generated from operating activities of £28.7m (2013: £15.5m) resulting in net debt of £3.7m (2013: £27.9m) and share buyback programme resumed
- Online system sales increased by 30.6% to £204.7m (2013: £156.7m) with online sales accounting for 69.7% of UK delivered sales (2013: 63.3%). Of this, 38.3% of online orders were taken through a mobile device (2013: 27.5%)
- Total of 11 new stores opened in the period with one closure resulting in a total of 868 stores as at 29 June 2014 (2013: 825)
- Created nearly 300 new jobs in stores, expected to rise to over 1,300 by the end of the year
1 Total sales made by all franchisee and corporate stores in the UK, Republic of Ireland, Germany and Switzerland to the public. It is not revenue attributable to Domino’s as it is derived mainly from stores owned by franchisees
2 Pre-exceptional items
3 Like-for-like sales are sales made in stores that were open before 30 December 2012
Commenting on the results Chief Executive Officer, David Wild, said:
"I am pleased to report a strong first half performance for Domino’s led by the sales results in our core market. We have now seen three successive quarters of double digit like-for-like sales growth in the UK. I am especially pleased at the continued success of our e- and m- commerce platforms showing how customers enjoy and appreciate the benefit of ordering on-line. We are investing further to drive this even harder.
Outside the UK, the ROI has continued its solid recovery and we have seen an improvement in Switzerland after a slow start to the year. Germany continues to be challenging, but we remain committed to our plans.
Looking forward, we plan to open 40-50 stores in the UK this year as previously reported. I remain very excited by the Domino’s business and I am enjoying working with our franchisees and my team to build on our success.”
For further information, please contact:
Domino’s Pizza:
David Wild, Chief Executive Officer
01908 580604
Sean Wilkins, Chief Financial Officer
01908 580604
MHP Communications:
Tim McCall, Simon Hockridge, Naomi Lane
020 3128 8100
Numis Securities Limited
David Poutney, James Serjeant
020 7260 1000
A presentation to analysts will be held at 09.30 on 29 July 2014 at Numis Securities Ltd, The London Stock Exchange Building, 10 Paternoster Square, London EC4M 7LT.
Notes to Editors:
Domino’s Pizza Group plc is the leading player in the fast-growing pizza delivery market and holds the exclusive master franchise to own, operate and franchise Domino’s Pizza stores in the UK, Republic of Ireland, Germany, Switzerland, Liechtenstein and Luxembourg. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991. In April 2011, the Group acquired a majority stake in the exclusive master franchise to own, operate and franchise Domino’s Pizza stores in Germany. In September 2012, the Group acquired the master franchise for Switzerland, Luxembourg and Liechtenstein and an option to acquire the Master Franchise Agreement in Austria prior to the end of 2014.
As at 29 June 2014, there were 868 stores in the UK, Republic of Ireland, Germany and Switzerland. Of these, 670 stores are in England, 56 are in Scotland, 33 are in Wales, 21 are in Northern Ireland, one is on the Isle of Man, three are mobile units, 48 are in the Republic of Ireland, 26 are in Germany and 10 are in Switzerland.
Founded in 1960, Domino’s Pizza is one of the world’s leading pizza delivery brands. Through its primarily franchised system, Domino’s Pizza operates a global network of more than 11,000 Domino’s Pizza stores in over 70 international markets. Domino’s Pizza has a singular focus – the home delivery of pizza, freshly made 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, in Germany at www.dominos.de 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 MHP on +44 (0)20 3128 8100.