“Growth in online ordering, new store performance and franchisee profitability drives record results”
Domino’s Pizza Group plc (“Domino’s” the “Company” or the “Group”), the leading pizza delivery company, announces its results for the 52 weeks ended 28 December 2014.
Financial Highlights
- System sales1 increased by 14.6% to £766.6m (2013: £668.8m)
- Underlying2 profit before tax, of £54.8m, up 15.1% (2013: £47.6m)
- Like-for-like sales3 growth of 11.3% in 724 UK mature stores (2013: 7.0% in 670 mature stores)
- Underlying profit before tax for UK & ROI increased by 14.3% to £63.1m (2013: £55.2m)
- Underlying earnings per share:
- Diluted earnings per share up 10.5% to 26.4p (2013: 23.9p)
- Basic earnings per share up 10.8% to 26.6p (2013: 24.0p)
- Statutory operating profit up at £54.0m (2013: £20.4m)
- Statutory basic earnings per share up at 25.9p (2013: 10.7p)
- Final dividend increased by 10.1% to 9.69p per share (2013: 8.80p) bringing the total dividend for the year to 17.50p per share up 10.1% (2013: 15.90p)
- 44 new stores opened in the period (2013: 57 stores) with eight closures (2013: four) resulting in a total of 894 stores in four countries as at 28 December 2014
- UK & ROI online system sales increased by 30.2% to £440.0m (2013: £338.0m) with online sales accounting for 69.4% of UK & ROI delivered sales (2013: 61.5%). Of this, 44.2% of online orders were taken through a mobile device (2013: 30.9%)
- Strong balance sheet with an adjusted net cash position4 of £11.0m (2013: adjusted net debt of £13.6m)
Current Trading
Like-for-like sales in the first eight weeks of 2015 are as follows:
UK (£) | 9.5% |
ROI (€) | 4.8% |
Germany (€) | 0.1% |
Switzerland (CHF) | 7.7% |
Commenting on the results, Chief Executive Officer, David Wild, said:
“It has been another strong year for Domino’s, particularly in our core UK market, confirming the strength of our customer offer. Both UK like-for-like sales and new store performance were excellent and this has largely been driven by our sector-leading e-commerce initiatives. Our renewed focus on franchisee profitability has also provided an impetus to continued growth.
Outside the UK, we are pleased with progress in Ireland and Switzerland, both of which showed improvement. In Germany, there remains much work to do, but underlying losses have reduced, in the second half and we remain optimistic about the opportunity in this market.
These results are a tribute to the entire Domino’s team, including the franchisees and their colleagues, who work in the stores and served our customers with more than 75 million pizzas during 2014. I would like to thank them for their amazing efforts.
We look forward with continued optimism. We have a great brand and a strong plan; the year has started promisingly, but there are tough comparators to beat, so we will not get complacent and will continue to ensure Domino’s remains the Number One pizza brand in the UK.”
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 Underlying is defined as excluding amounts in relation to onerous leases, impairments, acquisition of joint ventures, associates and subsidiaries, and other restructuring and one-off items, as reconciled on the income statement
3Like-for-like sales are sales in UK stores that were open before 2013 compared to the corresponding 52 week period in the prior year
4 Excludes Domino’s Leasing Limited’s and the non-controlling shareholder loan in Germany in 2013
For further information, please contact:
Domino’s Pizza:
David Wild, Chief Executive Officer
01908 580604
MHP Communications:
Andrew Leach, 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 26 February 2015 at The Lincoln Centre. To register for attendance please contact Naomi Lane at MHP Communications on [email protected].
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, which was not exercised. On 26 February 2014, the Group acquired the remaining non-controlling interest of the German business
As at 28 December 2014, there were 894 stores in the UK, Republic of Ireland, Germany and Switzerland. Of these, 696 stores are in England, 56 are in Scotland, 36 are in Wales, 22 are in Northern Ireland, one is on the Isle of Man, two are mobile units, 48 are in the Republic of Ireland, 22 are in Germany and 11 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 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 www.dominos.uk.com, contact the Domino’s Press Office on +44 (0)1908 580732, or call MHP on +44 (0)20 3128 8100.