9th Mar 2023 10:50
(Alliance News) - Domino's Pizza Group PLC said on Wednesday its annual profit dropped despite an increase in revenue, as it booked additional technology costs.
The Milton Keynes, England-based firm said its pretax profit dropped 9.8% to GBP98.9 million in the year ending December 25, compared to GBP109.7 million the previous year.
Domino's Pizza Group is the master franchise of the international pizza delivery chain Domino's Pizza.
Domino's explained that profit was hurt by GBP7.6 million worth of technology platform costs. Finance costs were 23% at GBP24.0 million.
Revenue, however, rose 7.0% to GBP600.3 from GBP560.8 million, boosted by increased food costs and a record number of orders in the last three months of 2022.
The company said it sold 18.5 million orders in the final quarter of 2022, making it its best-ever quarter.
Domino's proposed a final dividend of 6.8 pence per share, unchanged from a year ago. This brings the total dividend for 2022 to 10.0p, up 2.0% from 9.8p.
Interim Chief Executive Officer Elias Diaz Sese said: "We have accelerated the execution of our strategy with the return of national value campaigns, growth in collections, our launch on Just Eat and increased store openings, alongside a strong focus on service from our franchise partners. At a time when customers have been looking for great value, Domino's has delivered, and you can see the results in the numbers we're announcing today."
Domino's added: "As we enter the third year of our growth strategy, we are focused on accelerating its execution, through five key areas of focus: franchise partner profitability & organisation, value for money, digital, convenience, and technology platform projects. Our asset-light business model and value proposition mean we are well placed to succeed in a challenging trading environment, and we remain confident that we will make further financial and strategic progress, and increased returns for our shareholders."
Shares were down by 9.6% at 258.20 pence each in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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