SOLID UK & IRELAND PERFORMANCE; INTERNATIONAL TRANSACTIONS PROGRESSING

All commentary below is on an underlying basis unless otherwise stated

Financial headlines

• Solid UK & Ireland performance:
  • UK like-for-like sales excluding splits up 3.7% (1.9% including splits)
  • Ireland like-for-like sales excluding splits up 3.0% (1.5% including splits)
• Underlying UK & Ireland EBIT of £102.4m, up 1.4%
• Underlying PBT excludes net non-underlying charges of £23.7m, largely relating to previously announced corporate store impairment of £18.7m and contribution to eCommerce fund of £7.1m
• Net Debt £232.6m, 1.99x Net Debt/EBITDA on a continuing basis and 2.28x including discontinued operations EBITDA
• Full year dividend +2.7% to 9.76p, reflecting the solid performance of the core UK & Ireland business

Strategic headlines

• 32 stores opened in UK & Ireland, of which 29 were franchised, by 23 different franchisees.
• Digital continues to be a driver of growth, with online accounting for 91.1% of UK delivery sales
• International disposal process progressing, transaction for Norway agreed subject to shareholder approval
• Michael Von Geldern joined as Strategy and Insights Director, previously Director of Data Science at Virgin Loyalty
• The search for the new Chair is progressing, and the recruitment process for the interim CFO is continuing

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

“Our core UK & Ireland business continues to deliver a solid trading result, with UK like-for-like sales up 3.7%. Our digital capabilities continue to fuel this growth, with online sales up 8.8%. Collection also saw a good performance, up 5.3%, and this remains a significant opportunity for us going forward. I would like to thank my colleagues across all our markets, together with our franchisee partners, for their continued hard work and passion for the Domino’s brand.

“In February we were pleased to announce a disposal of our Norwegian business which is subject to shareholder approval, and we expect this to complete by the end of May. We continue to prioritise transactions for our remaining International businesses, although expect that these may take some time as we ensure that we find the best owners for these businesses.”

Ian Bull, Interim Chairman said:

“The Board is encouraged by the performance in the UK and Ireland, in an uncertain environment. We have four key priorities: recruiting a new Chair, CEO and CFO, reinforcing our core business, rebuilding our franchisee relationship and finding the right owners for our International businesses. We are giving these priorities considerable time and focus and are confident in the long-term prospects for the Group.”

¹ System sales represent the sum of all sales made by both franchised and corporate stores to consumers
² Like-for-like sales performance is calculated against a comparable 52 week period in the prior year for stores that have not donated addresses to new stores within the previous 24 months
³ Underlying is defined as statutory performance excluding discontinued operations, and items classified as non-underlying which consists of non-underlying items which includes significant non-recurring items or items directly related to merger and acquisition activity and related instruments.
⁴ Statutory revenues represent revenues directly attributable to the Group 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, revenue relating to advertising and ecommerce funds, and corporate store sales in the UK
⁵ 2018 revenue, cost of sales and administrative costs have been restated following a review of the treatment of IFRS 15. This is discussed in detail in note 1 to the accounts
⁶ Results for the year ended 30 December 2018 have been re-presented to exclude International operations which are treated as ‘discontinued operations’
⁷ Excluding splits excludes the impact of split stores, by removing donor stores from the like-for-like calculation
⁸ Net debt is defined as the bank revolving facilities, cash and cash equivalents, finance leases and other loans, including balances held in disposal groups held for sale.

For further information, please contact:

For Domino’s Pizza Group plc:
Bethany Barnes, Head of Investor Relations: 07387 015695

Brunswick:
Tim Danaher, Samantha Chiene, 020 7404 5959

A presentation for investors and analysts will be held at 9.00am on 5 March 2020 at the offices of Goldman Sachs, Plumtree Court, 2 Stonecutter Court, London EC4A 4AH.

The live webcast can be viewed at:  
https://www.investis-live.com/dominos/5e3309210a12d41100761e7d/asaw

About Domino’s Pizza Group

Domino's Pizza Group plc is the UK’s leading pizza brand and a major player in the Irish market. We hold the master franchise agreement to own, operate and franchise Domino’s stores in the UK, the Republic of Ireland, Switzerland, Iceland and Liechtenstein. In addition, we have a controlling stake in the holders of the Domino’s master franchise agreements in Norway and Sweden, as well as associate investments in Germany and Luxembourg. As at 29 December 2019, we had 1,298 stores across six markets, including 1,130 stores in the UK.

For photography, please visit the media centre at corporate.dominos.co.uk, contact the Domino’s Press Office on +44 (0)1908 580757, or call Brunswick on 020 7404 5959