e-commerce continues to drive an excellent group performance
Domino’s Pizza Group plc (“Domino’s”, “DPG”, the “Company” or the “Group”), the leading pizza company in UK and Ireland, announces its results for the 52 weeks ended 27 December 2015.
| Financial Highlights1 | 52 Weeks Ending 27 December 2015 |
52 Weeks Ending 28 December 2014 |
Change |
|---|---|---|---|
| System Sales2 from continuing operations |
£877.2m | £757.8m | 15.8% |
| UK Like-for-Like System Sales3 from continuing operations |
11.7% | 11.3% | |
| Underlying4 Operating profit from continuing operations |
£73.2m | £62.8m | 16.6% |
| Underlying Basic EPS from continuing operations |
35.7p | 29.9p | 19.4% |
| Net cash balance | £40.4m | £11.0m | £29.4m |
| Dividend per share | 20.75p | 17.5p | 18.6% |
| Statutory Revenue5 from continuing operations |
£316.8m | £288.7m | 9.7% |
| Statutory Profit After Tax from continuing operations |
£59.3m | £49.4m | 20.0% |
Highlights
- UK performance continues to underpin growth with nine successive quarters of double-digit like-for-like (‘LFL’) sales
- Continued success of digital investment programmes in the UK
- E-commerce system sales ahead by more than 30%
- App-based sales now represent the largest distribution channel driving 48.6% of online sales
- In the UK e-commerce sales now represent 77.7% of all delivered sales
- Record new store opening programme in the UK
- 61 (2014: 40) stores opened in the year
- New store average weekly unit sales (‘AWUS’) 15% ahead of last year
- Further increase in franchisee profitability
- Store EBITDA performance up from 13.6% to 15.5%,6 driven by lower food prices
- Improving performance in international businesses
- Economic recovery and operational improvements continue in the ROI
- Strategic joint venture in Germany which has acquired the largest pizza delivery chain in the German market
- Continued progress being made in Switzerland
- Group underlying operating profit up by 16.6% and EPS up by 18.6%
- Strong net cash flow of £29.4m and cash conversion of in excess of 100% – net cash of £40.4m and ready to resume share buy backs
- Momentum continues with a good start to 2016 despite increasingly tough comparatives through the rest of the year
Current Trading
Like-for-like sales and year-to-date sales in the first nine weeks of 2016 trading are as follows:
| LFL sales | YTD Total sales growth | |
|---|---|---|
| UK | 10.5% | 16.1% |
| ROI | 13.7% | 13.2% |
| Switzerland | 4.3% | 21.1% |
Commenting on the results, Chief Executive Officer David Wild, said:
“2015 was a terrific year for Domino’s Pizza Group; the UK performance was outstanding, reflecting continued investment in our e-commerce platform. This underpins both our like-for-like results and the success of our new store programme. Digital continues to be at the heart of our business, driving more customers and higher frequency of orders. Our cash conversion is strong and we have today announced that we are ready to resume share buy backs alongside a dividend that is up 18.6%. We have made an encouraging start to 2016, although we are conscious of increasingly tough comparatives through the rest of the year. I would like to thank the DPG team for their hard work. I also want to pay tribute to our franchisees whose tireless endeavours ensure that our customers continue to enjoy great pizzas at great prices every day – whether ordered online or by phone, delivered to the door or collected in store.”
For further information, please contact:
Domino’s Pizza Group plc:
David Wild, Chief Executive Officer
020 7379 5151
Maitland:
Emma Burdett, Greg Lawless
020 7379 5151
Numis Securities Limited
Luke Bordewich, Richard Thomas
020 7260 1000
A presentation to analysts will be held at 09.30am on 3 March 2016 at Numis Securities Ltd, The London Stock Exchange Building, 10 Paternoster Square, London EC4M 7LT.
1 Continuing operations exclude the results of the German business which was discontinued during 2015. The German results are shown separately as discontinued operations. 2014 amounts have been restated.
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 29 December 2013, 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 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
6 Franchisee data submissions to end of December 2015 based on stores opened before 31 December 2013
