11th Aug 2020 09:14
(Alliance News) - Domino's Pizza Group PLC on Tuesday reported a good first half after remaining open throughout the lockdown and has reinstated its dividend for the previous financial year.
The pizza delivery company said pretax profit in the six months that ended June 28 widen to GBP45.8 million from GBP40.3 million a year prior, despite a slip in revenue, as administrative costs were cut to GBP53.7 million from GBP58.1 million.
Revenue for the period was down 1.1% to GBP246.9 million from GBP249.6 year on year.
Like-for-like sales were up 3.7% in the UK but down 4.9% in Ireland.
Domino's Pizza put its relative success over the period down to its ability to continue trade throughout lockdown, albeit with some changes such as switching to contact-free delivery and halting customer collections.
The company has decided to reinstate the previously deferred final dividend for 2019 of 5.56 pence per share. Domino's Pizza did not however propose an interim for 2020 dividend, citing to the chances of a second lockdown and subsequent reduction in consumer spending.
It said will review paying a total dividend for 2020 at the time of its annual results announcement in March 2021.
Chief Executive Dominic Paul said: "I am pleased to report a resilient first half performance. Throughout these unprecedented times we have focused on doing the right thing for our customers, colleagues, franchisees and communities. We view it as a privilege to have been able to stay open throughout the period.
"The macroeconomic, consumer and competitive backdrop for the second half of the year contain considerable uncertainties. Our system demonstrated responsiveness and agility in meeting the challenges presented through the lockdown period, although that did come at some inevitable and, in certain areas considerable, incremental costs.
"While trading in the first few weeks of the second half has been encouraging, it is too early to conclude on how consumer behaviour will evolve."
Domino's Pizza shares were down 2.3% at 317.40 pence each on Tuesday morning in London.
By Greg Roxburgh; [email protected]
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