5th Mar 2020 10:10
(Alliance News) - Domino's Pizza Group PLC reported "solid" annual trading from its core operations on Thursday, as it continues to both try and sell international operations and find new leadership.
Domino's reported revenue of GBP508.3 million for the 52 weeks to December 29, 3.0% higher than the year before.
UK & Ireland system sales rose 4.8% to GBP1.21 billion, and excluding split stores the rate of growth was 3.7%, easing back from 4.6% growth in Domino's previous financial year.
Pretax profit from continuing operations fell by 14% to GBP75.1 million, with underlying pretax profit dipping by 1.2% to GBP98.8 million. Profit was hit by a GBP18.7 million corporate store impairment.
Domino's has declared a final dividend of 5.56 pence per share. This means a total payout of 9.76p, up 2.7% on 2018's return.
"Our core UK & Ireland business continues to deliver a solid trading result, with UK like-for-like sales up 3.7%. Our digital capabilities continue to fuel this growth, with online sales up 8.8%. Collection also saw a good performance, up 5.3%, and this remains a significant opportunity for us going forward," said Chief Executive David Wild.
Domino's in October last year said it would be pulling out from operations in Switzerland, Iceland, Norway, and Sweden amid falling sales. The sale for a nominal amount of its Norwegian assets was announced in February.
Domino's on Thursday said it expects this to complete in May, and it is prioritising securing deals for its remaining international operations but conceded "these may take some time".
Regarding its leadership, Domino's requires a new chief executive, a new chief financial officer, and a new chair.
Incumbent CEO David Wild in August last year said he would be retiring when a replacement is found, while CFO David Bauernfeind died in a snorkelling accident whilst on holiday over the Christmas period. Chair Stephen Hemsley left at the end of 2019.
"We have four key priorities: recruiting a new chair, CEO and CFO, reinforcing our core business, rebuilding our franchisee relationship and finding the right owners for our International businesses," said interim Chair Ian Bull.
"We are giving these priorities considerable time and focus and are confident in the long-term prospects for the group."
Looking to 2020, Domino's has guided for net debt to be "slightly lower" than the figure at the end of 2019, being GBP232.6 million.
Shares were 4.0% lower on Thursday morning in London at a price of 292.79 pence each.
By George Collard; [email protected]
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