Profit surge at Domino’s as Euros and marketing drive push sales higher
Domino’s Pizza Group has said a “strong” performance by its UK and Ireland business has helped to more than double its profits for the past six months.
The pizza delivery business leapt to a pre-tax profit of £41.3 million for the 26 weeks to June 27, compared with a £19 million profit for the same period last year.
The group also said the second half of the year has “started well” as it has benefited from marketing investment and England’s exploits in the Euro 2020 tournament.
Domino’s said it believes the return tow more normal consumer habits over the rest of the year will also boost its collection business, which it expects to gradually recover towards order levels “more in line with 2019”.
Its delivery operation will face increased competition amid the recovery of hospitality firms, but the group said it believes it will be able to maintain its performance due to the “strength of our brand and continued investment”.
In the past half-year, the company saw sales grow 19.6% to £752.3 million against the same period last year.
The group said it continued its “digital momentum” as online sales increased by 25% to now represent 93% of revenues.
Domino’s also said that it has opened 13 sites so far this year and the group is confident it can reach at least 30 new stores by the end of 2021.
Dominic Paul, chief executive officer of Domino’s, said: “The strong trading in the first half of the year provides us with the firm foundations for the delivery of our strategic growth objectives, which build upon our strengths in both delivery and collection.
“This will enable us to deliver strong system sales growth and increase our store numbers in the UK and Ireland.
“Whilst the external landscape remains uncertain, the second half has started well.
“I believe our agile business model leaves us well placed to capitalise on the significant opportunities ahead while continuing to invest in our strategy, which will deliver benefits for franchisees and shareholders alike.”
Shares in the company were 2.5% higher after early trading on Tuesday.