28th Jul 2015 07:45
LONDON (Alliance News) - Domino's Pizza Group PLC on Tuesday said its pretax profit increased in the first half of its financial year, driven by higher revenue, as its system sales surged higher in the period, prompting a hike to its dividend.
The FTSE 250-listed pizza delivery company said its pretax profit for the 26 weeks to June 28 was GBP32 million, up from GBP25 million a year earlier. Domino's said its revenue, which comprises revenue paid by its franchisees along with royalty payments, rose to GBP157.6 million in the half, up from GBP145.6 million.
System sales, the total volume of sales made in Domino's franchise and corporate stores in the half, rose to GBP426.7 million, up from GBP375 million, as its UK like-for-like sales increased by 10%. It opened 21 stores in the period, up from 8 in the comparable period a year earlier, and said its e-commerce sales in the half were up by 24%.
The company also said its international operations improved in the half, with the loss from its German operations reducing and operational improvements made in it Irish arm.
Domino's said it will pay an interim dividend of 9 pence per share, up from 7.81 pence, a 15% rise.
"We've had a strong first half, driven by an excellent performance in our core UK business, which has again recorded double digit like-for-like sales growth. Our international operations have also shown improvements compared to last year," said Chief Executive David Wild.
"Whilst we are pleased with our performance in the first half, we face tougher comparators in the rest of the year. We have a continued programme of e-commerce initiatives and other marketing campaigns. The UK new store pipeline is solid and we are well-positioned for the future," added Wild.
Domino's shares were up 4.4% to 839.00 pence in early trade, one of the best performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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