Half year results

5 August 2025 LEI: 213800Q6ZKHAOV48JL75

This announcement contains Inside Information

Domino's Pizza Group PLC ("DPG")

 Half year results for the 26 weeks ended 29 June 2025

Continued market share gains in a tougher operating environment

Tougher operating environment results in lower Underlying FY25 EBITDA guidance

· Weaker consumer sentiment

o  H1 25 total orders flat

o  H1 25 like-for-like sales4 down 0.1% with Q2 down 0.7%

· Lower than expected store openings; franchisees cautious given increased employment costs

o  11 stores opened year-to-date

o  FY25 new store openings now expected to be mid-twenties; healthy pipeline for 2026

· H1 25 Underlying EBITDA down 7.4% to £63.9m

· Now expect FY25 Underlying EBITDA in range £130m to £140m

Resilient business model and strength of Domino's system drives market share gains

· DPG taking significant market share in H1 25

o  DPG's share of UK takeaway market +20bps to 7.2%5

o  DPG's share of UK pizza takeaway market +560bps to 53.7%5

· Outstanding supply chain delivering to 1,381 stores

o  Automation projects under way and on track to deliver further efficiencies

· Customer service continues to improve with average delivery times down across UK

o  H1 25 down to 24.1 minutes (H1 24: 24.6 minutes)

· Loyalty trial performing ahead of expectations in all customer cohorts, on track for 2026 launch

· Successful completion of ERP system across all supply chain centres

· Significant growth opportunity in Republic of Ireland due to under penetration vs. UK

Highly cash-generative business model with clear capital allocation policy

· H1 25 Underlying free cash flow of £28.7m before £8.5m capex invested in core business

· 2.9% increase in interim dividend, to 3.6p per share reflecting confidence in the business

· Increased stake in Victa DP, our JV in Northern Ireland, from 46% to 70% in March 20257

· Continued balance sheet strength with refinance successfully completed, securing an extended and expanded RCF facility6 on improved terms

· Assessing opportunities for second brand within strict financial & strategic guardrails

o  No opportunities under current consideration would require equity issuance

o  Whilst a second brand remains a core part of the strategy, if no acquisition announced by end of 2025, Board expects to resume share buybacks

Commenting on the results, Andrew Rennie, CEO said:

"Against a more difficult market backdrop, Domino's is significantly increasing its market share by offering great value, innovative products and even faster delivery times. This is a result of a relentless focus from our colleagues and franchise partners, and I'd like to thank them all for their hard work.

"There's no getting away from the fact that the market has become tougher both for us and our franchisees, and that's meant that the positive performance across the first four months didn't continue into May and June. Given weaker consumer confidence, increased employment costs and uncertainty ahead of the Autumn Statement, franchisees are taking a more cautious approach to store openings for the time being.

"Despite these near-term challenges we remain confident in our strategy and the prospects for our resilient, market-leading business. That confidence is demonstrated by our decision to increase the interim dividend, and we also continue to assess a range of accretive growth opportunities."

Current trading and outlook

We have seen total orders and like-for-like sales improve towards the end of July after a softer start due to the tough comparator period with the Men's Euro 2024 knockout stages. Consumer confidence remains weak impacting sales growth, and with employment costs increasing and the uncertainty ahead of the Autumn Statement, we now expect FY25 Underlying EBITDA to be in the range of £130m to £140m8.

We remain confident that our investments in key areas such as our loyalty programme and automation, as well as our growth ambitions in Ireland, will deliver sustainable growth and returns going forward.

Our technical guidance for FY25 is as follows:

· Underlying depreciation & amortisation of between £20m to £23m

· Underlying interest (excluding foreign exchange movements) in the range of £17m to £19m

· Estimated underlying effective tax rate of c.25% for the full year

· Capital investment of c.£22m

· Net debt at year-end between £260m and £280m

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended (together, "MAR").

The person responsible for making this notification is Adrian Bushnell, Company Secretary.

Contacts

For Domino's Pizza Group plc:Investor Relations

Will MacLaren, Director of Investor Relations +44 (0) 7443 192 118

Media:

Tim Danaher, Emilia Smith - Brunswick +44 (0) 207 404 5959

Results meeting

A results meeting and Q&A for investors and analysts will be held at 09:30 BST today. The webcast and presentation can be accessed here and will also be available on the Results, Reports and Presentations page of our corporate website.

In addition, we will replay the webcast and Q&A at 16:00 BST today for North American based investors not able to join the live presentation at 09:30 BST this morning.

About Domino's Pizza Group

Domino's Pizza Group plc is the UK's leading pizza brand and a major player in the Irish market. We hold the master franchise agreement to own, operate and franchise Domino's stores in the UK and the Republic of Ireland. As of 5 August 2025, we had 1,381 stores in the UK and Ireland. We also have a 12% shareholding in Domino's Pizza Poland.

Cautionary statement

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Domino's does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Notes

1. H1 25 is the 26 weeks to 29 June 2025. H1 24 is the 26 weeks to 30 June 2024

2. System sales represent the sum of all sales made by both franchised and corporate stores to consumers in UK & Ireland. These are excluding VAT and are unaudited.

3. Underlying is defined as statutory performance excluding items classified as non-underlying which includes significant irregular costs, significant impairments of assets and other costs associated with acquisitions and disposals as set out in note 4 to the financial information.

For H1 25, underlying excludes reacquired right amortisation of £3.0m and £0.2m in strategy costs, which represent legal and professional fees of £1.7m offset with a fair value gain of £1.5m on the remeasurement of the original 46% Victa DP investment prior to acquiring control. Taxation credit of £0.1m.

4. Like-for-like (excluding splits) system sales performance is calculated for UK & Ireland against a comparable period in the prior period for mature stores which were not in territories split in the current period or comparable period. Mature stores are defined as those opened prior to 31 December 2023. Excluding splits means that stores which have lost delivery territory to enable a new store opening are not included in like-for-like system sales.

5. Copyright © Kantar UK Limited 2025. All use is subject to Kantar UK Limited's terms and conditions. Kantar shall not be liable for any loss howsoever arising from or in connection with the interpretation of, or any action taken by it based on, any conclusions, findings or recommendations which are required of Kantar as part of the Syndicated Services. Kantar shall not be liable for any losses, third party claims, demands, damages, costs, charges, expenses or liabilities (or actions, investigations or other proceedings in respect thereof) whether direct or indirect, arising from or in connection of the Syndicated Services being provided and used beyond the Client's internal use.

6. The Group successfully amended and extended the RCF facility in July 2025, increasing the available facility to £300m and extending the facility to July 2030. The unsecured multi-currency revolving credit facility incurs interest at a margin over SONIA of between 165bps and 265bps depending on leverage, plus a utilisation fee of between 0bps and 30bps of the aggregate amount of the outstanding loans. The previous RCF incurred a margin over SONIA of between 185bps and 285bps.

7. In March 2025, DPG purchased an additional 24% in Victa DP Ltd for £25.5m (£7.0m equity, £18.5m debt funding), our joint venture in Northern Ireland, bringing DPG's shareholding to 70%.

8. Current mean of FY25 Underlying EBITDA expectations is £146.1m with a range of £140.8m - £149.2m. Based on 9 analysts' forecasts.

H1 25 performance review - market share gains in a tougher market

System sales were up 1.3% to £777.8m and like-for-like sales, excluding splits, were down 0.1%, with positive performance in Q1 offset by a 0.7% decline in Q2. Delivery orders grew in Q1 but weakened in Q2 in line with the wider market. Pleasingly, collection orders returned to growth in Q2, after five consecutive quarters of decline, driven by our first ever national advertising campaign highlighting the value in the collection channel.

We made significant market share gains in H1 25 in a tougher market. DPG's share of the UK takeaway market5 increased by 20 basis points to 7.2% and our share of the UK pizza takeaway market5 increased by 560 basis points to 53.7%.

Underlying3 EBITDA was £63.9m, down 7.4% driven primarily by lower supply chain volumes.

Statutory profit before tax was £40.5m, down 31.8%, substantially driven by the one off profit of £11.2m from the disposal of the London corporate stores in H1 24 and lower Underlying EBITDA.

Underlying profit after tax reduced by 14.7% to £33.0m, with Underlying earnings per share down 14.3% to 8.4p reflecting the lower number of shares in issue following share buyback programmes executed in FY24.

Underlying free cash flow generated by the business was £28.7m, a small decrease from £32.7m in H1 24, primarily due to lower underlying EBITDA, increased interest payments and a working capital outflow which is largely expected to reverse in H2 25.

The Board has declared an interim dividend of 3.6p per share, a 2.9% increase vs. H1 24.

Continued Strategic progress

We have a clear strategy to create value for shareholders and maximise the value of our strong market position and key competitive advantages in a capital disciplined manner.

Pillar 1: Maximising value in the UK & Ireland business

We have 1,381 stores across the UK & Ireland with around 95% operated by our franchise partners and our first strategic priority is to maximise the value in this core business.

We do this by growing system order volume, maximising profit through efficiency both within DPG and our franchise network and close alignment with our franchise partners.

Increasing our customers' order frequency and opening stores are the two primary drivers of growing the total order count.

Grow order volume - increasing frequency through digital, service, loyalty, innovation

Our c.13m customers order on average 4.3 times a year. We have c.9m customers who now order on our app and c.75% of all digital orders are placed on the app. Our technology platform enables us to interact with our customers and tailor offers in a far more targeted manner, leveraging our customer base in a compelling way. This is a key driver in growing system order volume.

We pride ourselves on giving outstanding customer service and constantly strive to make continuous improvements. Once again average delivery times improved across the UK, reducing by half a minute to 24.1 minutes. This is a direct result of intense focus from our franchise partners with outstanding support and training from DPG's operations team. We believe that giving customers consistently fast delivery times is a key competitive advantage and a driver of growing frequency and system volume.

We are the largest Quick Service Restaurant ("QSR") in the UK without a loyalty programme and we continue to make good progress with our trial. It is important that this is done effectively to ensure that it is profitable for both DPG and our franchise partners and enhances our value proposition for our customers.

The first trial of our loyalty programme began in August 2024 performed ahead of our expectations, driving incremental orders. We have now moved to a second phase trial with c.3m customers invited to participate. So far c.1m customers have signed up. Order incrementality across both low, medium and high frequency cohorts continues to perform ahead of expectations and we are progressing well with capabilities to advance on this trial further. We continue to target a full roll out in FY26.

Innovation continues to be important in growing volumes and to differentiate us from our competitors. We bring fresh experiences and on trend flavours to our menu, giving customers a reason to keep choosing us. Early in H1 we again delighted customers with our Domino's Cookies with Crème Egg for Easter and brought back a fan favourite with the Ultimate Chicken Mexicana. We have recently seen exceptional demand for our Ultimate Hot Honey Pepperoni Pizza and have some even more exciting flavours to come in the second half of the year as we tap into trends and bring new products to seasonal occasions.

Our partnerships with aggregators Just Eat and Uber Eats continue to serve us well. We started the roll-out on Just Eat in 2022 and Uber Eats in 2024 and both have delivered incremental customers and orders. We will continue our unique operating model with orders sourced through the aggregator platforms but the order is delivered to the customer using the outstanding Domino's delivery drivers. Presence on Uber Eats complements our existing partnership with Just Eat, with Uber Eats performing well in London, the South and major city centre locations.

Grow system order volume - new store openings

New store openings continue to be a driver of growth and we remain under-penetrated compared to large QSR competitors in the UK and also other successful, international Domino's systems.

At the start of FY24, we undertook a detailed review of the growth potential in the UK & Ireland and identified opportunities across new territories as well as splitting existing geographies. Since our review, the UK & Ireland operating environment has become tougher through increased employment costs, weaker consumer confidence and a slow planning system. And, as a result, so far in 2025 we have opened 11 new stores with 9 different franchise partners. FY25 new store openings now expected to be mid-twenties, with a healthy pipeline for 2026.

Despite this short-term slowdown, we continue to see opportunity in smaller address count territories. These territories often have limited competition, our strong national brand is a significant competitive advantage, and we believe there remains over 400 available territories with less than 10,000 addresses. Since the start of 2024 we have opened 20 stores in territories with less than 10,000 addresses. All of the 20 stores have average sales per address greater than the national average.

Maximise profit through efficiency - outstanding national supply chain and procurement

Our supply chain is the backbone of our system. It is the primary driver of the Group's revenue and EBITDA and its very high service levels are vital in helping our franchise partners remain competitive.

We have consistently invested in the supply chain over the last 40 years and now have four supply chain centres ("SCC's") in Milton Keynes, Warrington, Cambuslang and Naas. These SCCs deliver goods to our 1,381 stores three times a week and in H1 25 maintained 99.96% accuracy and 99.99% availability. These results are testament to the expertise and dedication of all our colleagues in the supply chain.

We have started the process for building our fifth SCC in Avonmouth. This will underpin the future expansion of the system with increased warehouse & distribution capacity, allow for more efficient deliveries to stores in the Southwest and South Wales, and free up capacity in the other mainland UK SCCs.

We constantly assess ways to improve the efficiency of our supply chain operation. Over the last four years we have made efficiency gains with the roll out of cages and dollies as a delivery platform across the system. We have also improved the efficiency of our transport operations, the largest cost base in the supply chain. In 2024 we made c.14,000 more deliveries to stores with the same size fleet as in 2022 driven by route optimisation software.

The next area where we see attractive efficiencies is automation within our warehouses. We have started a number of automation projects which will improve margins and also expand our capacity within our existing SCCs. These projects include automated de-boxing of goods arriving at the SCCs, storage and picking. and automated dough mixing. In addition, we are increasing automation levels in dough production, including the use of a robot technology at our SCC in Cambuslang. We expect automation projects to start benefitting DPG in 2026 and from 2028 we expect c.10% annual labour cost efficiency across the supply chain mitigating inflationary cost increases in our supply chain centre operations.

We have a world-class procurement function and are able to secure attractive pricing for our franchise partners across all ingredients and supplies. Our ERP system has been successfully rolled out across all our SCCs and combined with our procurement excellence we believe these will continue to help improve margins.

Franchisee partnership - winning together

Our franchise partners are operating in a tougher environment with increased employment costs and weaker consumer confidence.

Having faced a 10% minimum wage increase in H1 24, our franchise partners faced a further significant labour cost increase in H1 25. As a result, franchise partner profitability declined in H1. Average UK store EBITDA (unaudited) in H1 25 was down 5% to £77k (H1 24: £81k), generating a 13% EBITDA margin (H1 24: 14%).

In December 2024 we agreed a five-year Profitability & Growth Framework ("PGF") to ensure alignment and drive growth. We continue to work with franchise partners to create cost efficiencies through procurement and best practice sharing.

Pillar 2: Driving growth in Ireland

Ireland currently is a significant revenue growth opportunity as we are underpenetrated compared to England, Scotland and Wales. Over the last two years we have implemented key strategic actions to support this growth.

Firstly, we invested in the Supply Chain Centre in Naas so that we have capacity to support the growth and maintain the current levels of outstanding service as we and our franchise partners grow the estate.

In April 2024 we acquired full control of Shorecal, the largest Domino's franchise business in the Republic of Ireland and Northern Ireland, operating 34 stores. This, alongside growth from our franchise partners, enabled us to deliver a record year of store openings in 2024, double the previous record.

In March 2025 we purchased an additional 24% of Victa DP Ltd, our joint venture in Northern Ireland, bringing DPG's shareholding to 70%. This is consistent with our strategy of unlocking growth in Northern Ireland and Republic of Ireland following the acquisition of Shorecal and the investment in the Ireland supply chain centre.

We are the number one pizza delivery company in Ireland and market dynamics are attractive. There is a clear opportunity to give customers increasingly good value, particularly in the Dublin area. Within Shorecal, we have delivered value to customers through targeted promotions and there remains an opportunity to bring these value offers across Ireland.

There is no change to our capital light model and we continue to evaluate our corporate store portfolio. We are now in an even stronger position to accelerate our growth, open new stores, and provide great service and great tasting products to our customers.

Pillar 3: Accretive second brand opportunities

We continue to explore second brand options, where we can leverage the scale and unique capabilities of the Group and deliver attractive returns to shareholders.

We have a c.13m active customer base, an outstanding national supply chain which already delivers to 1,381 stores and the necessary digital, IT & marketing capability, alongside world-class franchise partners.

The Board is rigorous in applying guardrails to potential opportunities. Any acquisition would need to have a significant growth runway, synergies with DPG's assets, the potential to be a strong national brand and be profitable. Above all, a potential opportunity must be earnings accretive to DPG and the Board applies strict internal hurdle rates.

We are focusing on opportunities which are in line with our guardrails and no opportunities under current consideration would require equity issuance. Whilst a second brand remains a core part of the strategy, if no acquisition is announced by the end of 2025, the Board expects to resume share buybacks.

Capital discipline

Domino's is a highly cash generative business and we will continue to apply our four-point capital allocation framework, introduced in March 2021, to deploy free cashflow generated by the business and recycled capital from divestments.

Investment to drive growth in the core UK & Ireland business remains our number one priority and we invested £8.5m in capital expenditure in H1 25. This was focused on supply chain automation projects and the initial work on our new supply chain centre in Avonmouth.

Secondly, in line with our commitment to pay a sustainable and progressive dividend, we will pay an interim dividend of 3.6p per share, an increase of 2.9% vs. H1 24.

Thirdly, as previously outlined, we continue to assess accretive opportunities for a second brand, where we can leverage the scale and capabilities of the Group and deliver attractive returns to shareholders.

Finally, operating within a normalised leverage range of 1.5x - 2.5x net debt to Underlying EBITDA, we remain committed to returning any surplus cash to shareholders. Net debt was £306.6m at June 2025, with leverage of 2.32x.

Sustainability strategy

In the first half of 2025, we made further progress in our sustainability journey at Domino's. We published our updated Sustainability Report, which provides an overview of our progress in 2024 and introduced a set of streamlined priorities, chosen for both risk mitigation and our potential for positive impact, these are: emissions reduction, balanced choices and modern slavery risk mitigation. Fleet emissions contribute 85% of our Scope 1 emissions and we have made great strides against our priorities to reduce this: we are now operating several electric trucks in the fleet with more deliveries due later in the year. We are also collaborating with key suppliers, who account for 65% of our total Scope 3 purchased goods and services emissions, to drive reductions. Under our nutrition strategy, we are working to expand our lighter menu. Following the successful rollout of Cheeky Little Pizzas, we launched under 400 calorie Thin & Crispy and under 600 calorie personal options, plus two new vegetable sides which are under 200 calories. We have appointed our first nutritionist who is working with our suppliers on how to approach reformulation to increase our range of HFSS compliant offers. Finally, we continue strengthening our modern slavery risk mitigation processes through Sedex, supplier audits and the EQS system rolled out across all colleagues and Shorecal stores; rollout to franchisees is targeted for later this year.

H1 25 trading summary

System sales represent all sales made by both franchised and corporate stores to customers. Total system sales were £777.8m, up 1.3% on H1 24. Like-for-like system sales across UK & Ireland were down 0.1%, with the positive performance in Q1 25 more than offset by like-for-like sales declining 0.7% in Q2.

* Like-for-like (excluding splits) system sales performance is calculated for UK & Ireland against a comparable period in the prior period for mature stores which were not in territories split in the current period or comparable period. Mature stores are defined as those opened prior to 31 December 2023.

Total orders were flat compared to H1 24. Delivery orders were down 0.6% with a soft performance in Q2 driven by a weaker market. Collection orders returned to growth in Q2 after five consecutive quarters of decline and were up 1.0% in H1 25. This recovery was driven by DPG's first ever national advertising campaign highlighting the value in the Collection channel. We still believe Collection orders have the potential to be c.50% of total orders in the long term, currently at c.35%.

Total orders represent the total amount of orders placed by customers with Domino's. The table above shows total orders, also split by the delivery and collection channel. Volume represents total orders, the amount of items in each order and product mix within each order.

Financial review

· The Group successfully completed the acquisition of a controlling stake in Victa DP which is now fully consolidated into our results.

· Underlying EBITDA was £63.9m, down £5.1m, primarily driven by lower supply chain centre EBITDA of £4.8m and a £4.3m increase in net overheads, partially offset by lower technology costs of £2.0m and full year corporate store benefit of £1.7m.

· Underlying EBIT decreased by £7.0m to £53.1m due to lower EBITDA and higher depreciation and amortisation following investment in the business in previous years.

· Underlying profit before tax of £43.7m, a decrease of £7.6m, which includes net finance costs of £9.4m, an increase of £0.6m on the previous year due to increased interest on the Group's debt facilities as a result of higher average net debt.

· Underlying profit after tax of £33.0m, a decrease of £5.7m on H1 24. This includes taxation of £10.7m, down from £12.6m.

· Non-underlying loss after tax of £3.1m includes £3.0m amortisation of reacquired rights, £1.7m strategy related costs offset by a £1.5m fair value gain on the deemed disposal of the Group's equity investment in Victa DP prior to obtaining controlling shareholding in March 2025.

· Statutory profit after tax was £29.9m, a decrease of £12.4m from H1 24, largely due to the one-off profit on disposal of the London Corporate stores recognised in the prior period.

· Free cash flow before non-underlying items decreased by £4.0m to £28.7m, primarily due to lower underlying EBITDA, increased interest payments and a working capital outflow.

· Capital allocation items of £66.7m includes capital expenditure of £8.5m, dividend distributions of £29.4m and the acquisition of Victa DP of £25.5m.

· Overall net debt increased by £21.2m, resulting in a pre-IFRS 16 leverage ratio of 2.32x up from 2.16x in H1 24, which is expected to reduce by year end.

· Interim dividend of 3.6p per share to be paid on 26 September 2025 to shareholders on the register as at 15 August 2025.

Reported Revenue

Our key metric for measuring the revenue performance of the Group is system sales, rather than our Group revenue. System sales are the total sales to end customers through our network of stores, for both franchise partners and corporate stores. Our Group revenue consists of food and non-food sales to franchise partners, royalties paid by franchise partners, contributions into the National Advertising Fund ('NAF') and ecommerce funds, rental income and end-customer sales in our corporate stores.

Within our Group revenue, the volatility of food wholesale prices, together with the combination of different revenue items, means that analysis of margin generated by the Group is less comparable than an analysis based on system sales. We consider that system sales provide a useful alternative analysis over time of the health and growth of the business.

Reported system sales in the period were £777.8m, up 1.3% from H1 24.

The table below shows the Group's reported revenue:

Reported revenue increased by £4.7m to £331.5m, primarily driven by an increase in Corporate Stores revenue offset by a decrease in supply chain revenue due to lower volumes.

Royalty, rental and other revenues primarily relate to the royalty revenue we receive from our franchise partners based on a percentage of system sales and rental income.

Revenue for our directly operated corporate stores increased by £12.0m due to increased revenue from Shorecal in the period and the acquisition of Victa DP on 10 March 2025. Revenue from Shorecal in the period includes a full half year contribution when compared to the prior period which includes a revenue contribution from 10 April 2024.

NAF and ecommerce revenue is recognised based on costs incurred which increased to £42.6m during the period.

Underlying EBITDA

The Group generated an underlying EBITDA of £63.9m, a decrease of £5.1m on H1 24 which is primarily driven by a decrease in supply chain centre EBITDA of £4.8m partly due to lower volumes and a £4.3m increase in net overheads which includes investment in skills and capabilities.

This is offset by £2.0m lower technology costs due to successful roll out of the Group's ERP system, and £1.7m net corporate store benefit from a full half year of trading. EBITDA from royalties increased by £0.2m as a result of increased system sales in the period,

Interest

Net underlying finance costs in the period increased by £0.6m to £9.4m, which includes interest on net debt of £8.5m and net lease interest payable of £0.9m. 

In June 2024, the Group increased its debt facilities with an additional £100m in Private Placement Loan Notes due in 2034 at a fixed rate of 5.97%, which largely replaced the Group's variable rate borrowings. In addition, in July 2025 the Group extended the RCF facility as set out in the Treasury Management section below. The Group currently has combined debt facilities of £600m.

Taxation

The underlying effective tax rate for H1 2025 was 24.5% (H1 24: 24.6%). The decrease in the effective tax rate was due to a one-off adjustment made in the prior year to reflect historical services provided between our UK and Irish subsidiary.

Underlying profit after tax decreased to £33.0m driven by a decrease in underlying EBIT combined with higher net finance costs offset by a decrease in the underlying tax charge outlined above.

Non-underlying items

Non-underlying loss after tax of £3.1m include a £3.0m amortisation charge incurred on reacquired rights recognised upon the acquisition of Shorecal and Victa DP.

Costs associated with our strategy of £0.2m were recognised, which represents legal and professional fees of £1.7m offset with a fair value gain of £1.5m recognised on the deemed disposal of the Group's equity investment in the Northern Ireland Joint Venture prior to obtaining a 70% controlling interest.

In H1 24, a non-underlying profit after tax of £3.6m was recognised. This included a £11.2m profit on disposal of the corporate stores offset with Shorecal acquisition costs of £2.2m, amortisation on reacquired rights of £1.0m and taxation of £4.5m.

Statutory profit after tax and earnings per share

Statutory profit after tax was £29.9m, a decrease of £12.4m from H1 24.

Statutory EPS decreased to 7.6p from 10.7p, largely due to a decrease in underlying profit after tax and the profit on disposal of the London Corporate stores in the first half of 2024 which generated a profit on disposal of £11.2m.

Underlying basic EPS decreased to 8.4p as a result of lower underlying profit after tax partially offset by a lower number of weighted average shares due to the share buyback programme executed in 2024.

Technology platform costs

During the period, we completed the roll-out of our new cloud-based ERP system across all our SCCs. The new ERP enables us to drive efficiencies across the system.

Within EBITDA, costs of £1.5m have been recognised which relate to the ERP. These represent costs spent on development of these assets, which are expensed through the income statement rather than capitalised as intangible assets, as they relate to cloud platforms. This represents the full spend on the project in the year to date.

Amortisation of £0.7m was incurred on the ecommerce platform.

Free cash flow and Net debt

Net debt increased by £21.2m with a free cash flow before non-underlying items of £28.7m, non-underlying outflow £3.0m and capital allocation items outflow of £66.7m.

Free cash flow

Free cash flow before non-underlying items was £28.7m, a decrease of £4.0m on the previous year. Underlying EBITDA was £63.9m, a decrease of £5.1m as outlined above.

There was a working capital outflow of £12.1m (H1 24: outflow of £10.7m). This predominantly relates to decreases in overall accruals and accrued income of £5.1m, an outflow of £4.4m due to the unwind of the timing of cash receipts and payments for online sales, a £2.9m decrease in overall trade payable and an increase in the NAF debtor of £1.4m. This is offset by a £1.3m decrease in inventory due to seasonal levels from year end. These movements are expected mostly to reverse in H2 25.

Net IFRS 16 lease payments increased by £0.6m to £3.9m following the acquisition of our Investment in Victa DP. Dividends received of £0.4m were from our associate investment in West Country. 

Net interest payments of £8.1m increased from £7.8m as a result of increased net debt.

Corporation tax payments decreased by £3.3m to £11.9m primarily due to increased payments made in the prior year relating to transfer pricing between our UK and Irish subsidiaries.

Non-underlying payments of £3.0m were made during the year, which includes £3.1m in terminated acquisition costs incurred in the prior year, a £1.0m outflow relating to the historical driver case exposure to the tax authorities in Ireland and corporation tax payments of £0.5m, this is offset by £2.1m reversionary scheme compensation.

Capital allocation items

Capital allocation items decreased by £16.9m to £66.7m.

Capital expenditure increased to £8.5m which includes £2.6m relating to automation across the supply chain centres, £1.0m relating to our fifth SCC in Avonmouth and £3.2m relating to total investment in digital and ecommerce development.

Acquisitions and disposals of £25.5m relate to the acquisition of a controlling interest in Victa DP. Included in this amount is the £7.0m consideration for the additional 24% shareholding, £20.7m relating to the repayment of debt on acquisition offset by a £2.2m capital contribution by the minority interest.

In H1 24, acquisitions and disposals cash outflow of £42.5m included a £48.7m acquisition of Shorecal, of which £16.3m related to repayment of debt on acquisition. In addition, the Group invested £11.4m for a 12% investment in DP Poland Plc. This was offset by the £17.3m in proceeds received on the disposal of the London corporate stores.

Dividends paid of £29.4m relates to the final FY24 dividend paid in May 2025. Share transactions of £3.3m relate to share purchases made by the Employee benefit trust.

Capital employed and balance sheet

Intangible assets increased by £40.0m to £138.1m. The primary movement relates to the addition of £41.4m of goodwill and intangibles relating to the Victa DP acquisition.

Property, plant and equipment increased by £5.5m to £109.0m, which include additions of £4.8m and £4.1m acquired through the acquisition of Victa DP. This was offset by £3.6m in depreciation during the period.

Additions of £4.8m include £2.6m relating to automation across the supply chain centres, £1.0m relating to our fifth SCC in Avonmouth and £0.6m relating to corporate stores.

Investments, associates and joint ventures decreased by £6.6m primarily due to the derecognition of Victa DP following the group's controlling share acquisition during the period. 

Deferred consideration of £2.0m relates to amounts owed to the Group following our disposal of the London Corporate Stores during the year. This is expected to be received in 2026.

Right-of-use assets of £26.9m represent the lease assets for our corporate stores both in the UK and Ireland, warehouses and equipment leases recognised under IFRS 16 in the current period. The net lease liability is £29.2m. The lease portfolio has increased as a result of the acquisition of Victa DP. 

The net working capital liability has decreased from £40.3m to £35.0m as a result of the factors outlined in the cash flow section above.

Total equity has decreased by £0.7m, to a net liability position of £82.9m, largely due to the profit after tax generated of £29.9m offset by dividend payments of £29.4m. There are sufficient distributable reserves in the standalone accounts of Domino's Pizza Group plc for the proposed dividend payment.

Treasury management

At 29 June 2025, the Group held £500m in debt facilities, of which £200m relates to an unsecured multi-currency revolving credit facility (RCF) and £300m relates to US Private placement loan notes. The total undrawn facility at 29 June 2025 was £177.0m.

The Group successfully amended and extended the RCF facility in July 2025, increasing the amount to £300m and extending the facility to July 2030. The Group now holds £600m in debt facilities, of which £300m relates to the amended RCF and £300m relates to US Private Placement loan notes.

The US Private Placement loan notes consist of £200m which incur interest at a fixed rate of 4.26% and expire in July 2027, and £100m which incurs interest at a fixed rate of 5.97% and expires in June 2034. Interest is payable every six months.

The unsecured multi-currency revolving credit facility incurs interest at a margin over SONIA of between 165bps and 265bps depending on leverage, plus a utilisation fee of between 0bps and 30bps of the aggregate amount of the outstanding loans. The previous RCF incurred a margin over SONIA of between 185bps and 285bps.

The financial covenants under all financing agreements are materially consistent. These covenants relate to measurement of adjusted EBITDAR against consolidated net finance charges (interest cover) and adjusted EBITDA to net debt (leverage ratio) measured semi-annually on a trailing 12-month basis at half year and year end. The interest cover covenant under the terms of both agreements cannot be less than 1.5:1, and leverage ratio cannot be more than 3:1. Figures used in the calculation of both covenants exclude the impact of IFRS 16.

As at 29 June 2025 the Group has Net debt of £306.6m, and the last 12 months Net debt/EBITDA ratio excluding the impact of IFRS 16 increased to 2.32x from 1.93x, largely as a result of the cash outflow on the acquisition of Victa DP.

Underpinning treasury management is a robust Treasury Policy and Strategy that aims to minimise financial risk. Foreign exchange movement arising from transactional activity is reduced by either agreeing fixed currency rates with suppliers or pre-purchasing the currency spend.

Group income statement

26 weeks ended 29 June 2025

Group statement of comprehensive income

26 weeks ended 29 June 2025

Group balance sheet

At 29 June 2025

Group statement of changes in equity

26 weeks ended 29 June 2025

Group cash flow statement

26 weeks ended 29 June 2025

Notes to the interim financial statements

26 weeks ended 29 June 2025

1. General information

Domino's Pizza Group plc ('the Company') is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number 03853545). The Company is domiciled in the United Kingdom and its registered address is 1 Thornbury, West Ashland, Milton Keynes, MK6 4BB. The Company's ordinary shares are listed on the Official List of the FCA and traded on the Main Market of the London Stock Exchange. Further copies of the interim report and Annual Report and Accounts may be obtained from the address above.

2. Basis of preparation

The condensed consolidated interim financial statements (the 'interim financial statements') have been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The financial information contained in this interim report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The interim results for the 26 weeks ended 29 June 2025 and the comparatives to 30 June 2024 are unaudited but have been reviewed by the auditors. A copy of their review report has been included at the end of this report.

The financial information for the 52 weeks ended 29 December 2024 has been extracted from the Group financial statements for that period. These published financial statements were reported on by the auditors without qualification or an emphasis of matter reference and did not include a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.

The interim financial information is presented in sterling and all values are rounded to the nearest tenth of million pounds (£0.1m), except when otherwise indicated. The accounting policies are consistent with those of the previous financial year and corresponding interim reporting period, except for the estimation of income tax (see note 7). The financial statements are prepared using the historical cost basis with the exception of the derivative financial assets and contingent consideration which are measured at fair value in accordance with IFRS 13 Fair Value Measurement.

Going concern

The interim financial information has been prepared on a going concern basis. This is considered appropriate, given the financial resources of the Group including the current position of banking facilities, together with long-term contracts with its master franchisor, its franchisees and its key suppliers.

The Directors of the Group have performed an assessment of the overall position and future forecasts (including the 12 month period from the date of this report) for the purpose of going concern. The overall Group has seen market share gains in a tough operating environment.

The Directors of the Group have considered the future position based on current trading and a number of potential downside scenarios which may occur, either through reduced consumer spending, reduced store growth, supply chain disruptions, general economic uncertainty and other risks. This assessment has considered the overall level of Group borrowings and covenant requirements, the flexibility of the Group to react to changing market conditions and ability to appropriately manage any business risks. As at 29 June 2025 the Group has £500m of banking facilities and a net debt position of £306.6m. The facilities have leverage and interest cover covenants, with which the Group have complied. The Group amended and extended the RCF facility in July 2025, increasing the amount to £300m and extending the facility to July 2030. The Group now holds £600m in debt facilities, of which £300m relates to the amended RCF and £300m relates to US Private Placement loan notes. The covenants have remained unchanged.

The scenarios modelled are based on our current forecast projections out to the end of 2026 and have taken into account the following risks:

- a downside impact of economic uncertainty and other sales risks over the forecast period, reflected in sales performance, with a c.5% reduction in LFL sales compared to budget;

- The impact of a reduction of new store openings to half of their forecast level;

- A further reduction of between 2.5%-3.0% in sales to account for the potential impact of the public health debate;

- Future potential disruptions to the supply chain through loss of one of our supply chain centres impacting our ability to supply stores for a period of two weeks;

- The impact of a temporary loss of availability of our eCommerce platform for 24 hours during peak trading periods; and

- A significant unexpected increase in the impact of climate change on our delivery costs.

Notes to the interim financial statements (continued)

26 weeks ended 29 June 2025

2. Basis of preparation (continued)

We have also considered a second 'severe but plausible' scenario, which in addition to the above-mentioned risks, also includes the risks of:

- A disruption to one of our key suppliers impacting our supply chain over a period of four weeks whilst alternate sourcing is secured; and

- The impact of fines from a potential wider data breach.

In each of the scenarios modelled, there remains significant headroom available on net debt. Under the first scenario there remains sufficient headroom under the covenant requirements of the facilities.

If all the risks under the first scenario were to occur simultaneously with the additional risks in the second scenario, before any mitigating actions, the Group would breach its leverage covenants. The Board has a mitigating action available in the form of delays in dividends to shareholders and share buybacks which would prevent a breach of leverage covenants.

Based on this assessment, the Directors have formed a judgement that there is a reasonable expectation the Group will have adequate resources to continue in operational existence for the foreseeable future.

Accounting policies and new standards

There were no new standards and interpretations effective for the first time for the reporting period that have a material impact on the Group financial statements.

Notes to the interim financial statements (continued)

26 weeks ended 29 June 2025

3. Segmental information

For management purposes, the Group has been organised into two geographic business units based on the operating models of the regions; the UK & Ireland operating more mature markets with a franchise model, limited corporate stores and investments held in our franchisees, compared to International which operated predominantly as corporate stores. The International segment included legacy Germany and Switzerland holding companies.

These are considered the Group's operating segments as the information provided to the Executive Directors of the Board, who are considered to be the chief operating decision makers, is based on these territories. The chief operating decision makers review the segmental underlying EBIT and EBITDA results and the non-underlying items separately. Revenue included in each segment includes all sales made to franchise stores (royalties, sales to franchisees and rental income) and by corporate stores located in that segment.

Following the announcement of the growth framework in 2023, the Group's operating segments continue to be reviewed and will be updated if there are any changes in the structure of information provided to the Executive Directors.

Unallocated assets include cash and cash equivalents and taxation assets. Unallocated liabilities include the bank revolving facility and taxation liabilities.

Segment assets and liabilities

Notes to the interim financial statements (continued)

26 weeks ended 29 June 2025

Segmental performance for the 26 weeks 29 June 2025

Notes to the interim financial statements (continued)

26 weeks ended 29 June 2025

Segmental performance for the 26 weeks ended 30 June 2024