Domino’s results go cold as profits slump
Takeaway chain Domino's has seen system sales increase by 13.8 per cent to £326.5m in 26 weeks ended 30 June (release). However pre-tax profits (after exceptional items) have sunk from £21.5m to £11.6m.
Profit before tax, excluding Germany and Switzerland, increased 10.3 per cent to £25.7m with sales up 6.4 per cent in the UK.
Commenting on the results CEO, Lance Batchelor, said:
I am pleased with the overall results for the first half – particularly the core UK and Ireland businesses which have shown strong like-for-like sales growth against challenging comparatives. Our franchise system leads the leisure sector and, with the majority of our business coming via a web and mobile platform, we are now truly an online retailer.
In our fledgling German business, as in the UK, our franchisees are those with the expertise to run great stores. Our Corporate stores have allowed us to test menus, develop marketing plans and understand the German consumer and are growing steadily. However the ground work is done and it is time to drive our German expansion using our tried and tested franchise model. We know the best way to get great results from stores is to put them in the hands of franchisees – and with five world-class franchisees now operating in the German market and more arriving shortly, we are excited about the future in this territory.