11th Mar 2025 11:45
(Alliance News) - Domino's Pizza Group PLC on Tuesday said it has started 2025 "positively" and it named a new chair, as incumbent Matt Shattock plans to step down.
The Milton Keynes, England-based pizza delivery group, which is the master franchise holder in the UK and Ireland for US pizza delivery brand owner Domino's Pizza, believes it is "well placed to thrive" this year and beyond. In the 52 weeks ended December 29, pretax profit fell 12% GBP124.9 million from GBP142.3 million.
On an underlying basis, however, it improved 5.5% to GBP107.3 million from GBP101.7 million.
Revenue fell 2.3% to GBP664.5 million from GBP679.8 million. On a 52-week basis, revenue fell 0.4%. The prior financial year was 53 weeks long.
The company proposed to up its final dividend by 4.2% to 7.5p per share from 7.2p. It means the total dividend would be 11.0p, up 4.8% from the prior year.
Domino's expects to open over 50 stores in the current financial year 2025, similar to 54 in financial 2024, noting "a continued slow planning environment."
The company announced it bought an additional 24% for GBP25.6 million in Victa DP Ltd, consisting of GBP7.2 million equity and GBP18.4 million debt funding. Domino's now has a 70% shareholding in Victa, which is its joint venture in Northern Ireland.
Further, it anticipates that financial 2025 underlying earnings before interest, tax, depreciation and amortisation will be in line with current market expectations, excluding the positive impact of the Victa investment.
Domino's cited an expected annual underlying Ebitda of GBP146.4 million for financial 2025, about 2.1% higher than GBP143.4 million for just-posted financial 2024. The market consensus has a range of between GBP143.0 million and GBP148.2 million and is based on nine analysts' forecasts.
"Today's results show the benefits of our long-term strategy. We've capitalised on our competitive strengths, agreed a new five-year framework with our franchise partners and opened 54 stores. Our trading momentum accelerated as the year progressed, our delivery channel returned to growth and we delivered strong underlying earnings growth. This has required relentless focus by our colleagues and franchise partners, and I thank them for their brilliant work," Chief Executive Officer Andrew Rennie said.
"In 2024 we made disciplined investments in new growth opportunities, Shorecal in Ireland and DP Poland [PLC], partly financed through recycling store disposal proceeds. Today we have announced an additional investment in our Northern Irish joint venture [Victa], further enhancing our ability to drive growth. We continue to explore targeted, accretive opportunities, which would be financed within our existing balance sheet capacity."
Domino's Pizza Group announced Ian Bull as its next chair, replacing Shattock "who has informed the board of his wish to step down from the role".
Bull is currently senior independent director. "Ian first joined the board in April 2019 and has a deep knowledge of the Domino's business, as well as extensive relevant experience from his executive career during which he served as chief financial officer of leisure and hospitality businesses including Greene King, Ladbrokes and Parkdean Resorts," the company said.
Shattock will step down following the annual general meeting on April 24.
Domino's shares fell 4.4% to 280.20 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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