Domino’s Pizza: profits jump 25 percent on sales boost

Milton Keynes / UK. (dp) Domino´s Pizza UK and IRL PLC announced interim results for the 26-week ended June 28, reporting a rise in profit that reflected a 11,3 percent growth in revenues. The company also declared an increase of nearly 30 percent in interim dividend. The company´s profit before tax for the first-half increased to 13,09 million GBP from 9,7 million GBP in the previous year. Summary:

• System sales increased by 15,4 percent to 196,4 million GBP (2008: 170,2 million GBP)
• Profit before tax increased 25,2 percent to 13,6 million GBP (2008: 10,9 million GBP)
• Like-for-like sales in 501 mature stores up by 7,1 percent (2008: 11,4 percent in 450 stores)
• Earnings per share:
  • Basic earnings per share up 20,9 percent to 6,26 Pence (2008: 5,18 Pence)
  • Diluted earnings per share up 21,3 percent to 6,21 Pence (2008: 5,12 Pence)
• Operating cash flow of 11,3 million GBP (2008: 4,5 million GBP)
• Total dividend increased 29,6 percent to 3,5 Pence per share (2008: 2,7 Pence)
• 23 new stores opened in the period (2008: 25 stores) and nil closed (2008: nil) resulting in a total of 576 stores as at 28 June 2009 (2008: 526)
• E-commerce continues to drive business with total online sales of 35,2 million GBP (2008: 25.4 million GBP), an increase of 38,9 percent; representing 26,2 percent (2008: 19,9 percent) of UK delivered sales
• Strong balance sheet with net debt to Ebitda of only 0.6:1 (2008: 0.6:1)

Looking forward, CEO Chris Moore said in a statement: «We are mindful of the tougher second half comparatives, especially towards the latter part of the year. However, given the strong performance in the first half, the number of new store openings anticipated in the second half and the operational gearing within the business, the Board believes it is on track to exceed expectations for the full year».