Posted:17-November-2010
Domino's Pizza franchise is driven to deliver
Domino’s Pizza UK & IRL plc (“Domino’s”, the “Company” or the “Group”), the leading pizza delivery company in the UK and Ireland, announces its results for the 26 weeks ended 27 June 2010.
Financial Highlights
System sales1 increased 20.8% to £237.1 (2009: £196.4m)
Profit before tax2 increased 28.6% to £17.5m (2009: £13.6m). Profit before tax after exceptional items was £17.0m (2009: £13.1m)
Like-for-like sales3 in 553 mature stores increased 13.7% (2009: 7.1% in 501 stores)
Earnings per share2:
o Basic earnings per share increased 28.4% to 8.04p (2009: 6.26p)
o Diluted earnings per share increased 27.1% to 7.89p (2009: 6.21p)
Operating cash flow increased by 42.7% to £16.2m (2009: £11.3m)
Total dividend increased 28.6% to 4.5p per share (2009: 3.5p)
19 new stores opened in the period (2009: 23) with no closures (2009: nil) resulting in a total of 627 stores as at 27 June 2010 (2009: 576). On track for 55 openings this year (2009: 55)
Growth in e-commerce business of 61.4% (2009: 38.9%), resulting in total online sales of £56.9m (2009: £35.2m). Online sales accounted for 32.7% of UK delivered sales (2009: 26.2%) during the period
Strong balance sheet with adjusted net debt4 to annualised EBITDA of only 0.5:1 (2009: 0.6:1)
Commenting on the results Chief Executive Officer, Chris Moore, said:
“I am delighted to announce another set of great results. We have delivered impressive like-for-like sales growth of 13.7% across 553 mature stores (2009: 7.1% in 501 mature stores) and a strong increase in system sales of 20.8% to £237.1m (2009: £196.4m). Our roll out strategy also remains on track with another 19 new stores (2009: 23) to start our silver jubilee year.
“It is easy to try and attribute our success to one thing – be it the weather, or Britain’s Got Talent, or the World Cup – but the underlying trend shows a more compelling picture. We have now been in business for 25 years and those years of experience give us the foundation from which we can seize every opportunity. It is great pizza, delivered as quickly as possible, by dedicated franchisees and store teams, which result in solid and steady sales growth, supported by innovative marketing on both a national and local level. 2
“We look forward to the future with confidence. While we may be 25, we know that there is still so much more to learn to maximise the opportunities and unlock the potential of what is still a relatively under-developed market.”
1 Sales from all stores in the UK and Republic of Ireland
2 Pre-exceptional items
3 Like-for-like sales are sales in stores that were open before 28 December 2008
4 Excludes Domino’s Leasing Limited’s non-recourse loans
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