Domino’s Pizza Group: Preliminary Results FY 2015

Milton Keynes / UK. (dp) Domino’s Pizza Group PLC, the leading pizza delivery company in the United Kingdom and Republic of Ireland, announces its results for the 52 weeks ended 27 December 2015.

Financial Highlights1	FY 2015	FY 2014	Change
System Sales2 from continuing operations	877.2 million GBP	757.8 million GBP	15.8%
UK Like-for-Like System Sales3 from continuing operations	11.7%	11.3%
Underlying4 Operating profit from continuing operations	73.2 million GBP	62.8 million GBP	16.6%
Underlying Basic EPS from continuing operations	35.7 Pence	29.9 Pence	19.4%
Net cash balance	40.4 million GBP	11.0 million GBP	29.4 million GBP
Dividend per share	20.75 Pence	17.5 Pence	18.6%
Statutory Revenue5 from continuing operations	316.8 million GBP	288.7 million GBP	9.7%
Statutory Profit After Tax from continuing operations	59.3 million GBP	49.4 million GBP	20.0%

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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 percent
  • App-based sales now represent the largest distribution channel driving 48.6 percent of online sales
  • In the UK e-commerce sales now represent 77.7 percent 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 percent ahead of last year
• Further increase in franchisee profitability
  • Store Ebitda performance up from 13.6 percent to 15.5 percent,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 percent and EPS up by 18.6 percent
• Strong net cash flow of 29.4 million GBP and cash conversion of in excess of 100 percent – net cash of 40.4 million GBP 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 percent	16.1 percent
ROI	13.7 percent	13.2 percent
Switzerland	4.3 percent	21.1 percent

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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 percent. 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».

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.