Domino’s Pizza Group plc has announced its results for the 52 weeks ended 29 December 2013, reporting strong sales and profit growth in the core UK and ROI business, with implementation of a new plan for Germany underway.
Financial Highlights
- System sales1 increased by 14.0% to £668.8m (20122: £586.5m)
- Profit before tax3, including Germany and Switzerland, of £47.6m, up 1.9% (2012: £46.7m)
- Profit before tax3, excluding Germany and Switzerland, increased 11.6% to £55.2m (2012: £49.5m)
- Adjusted diluted earnings per share, excluding Germany and Switzerland up 10.3% to 25.6p (2012: 23.2p)
- Like-for-like sales4 growth of 7.0% in 670 UK mature stores (20122: 5.2% in 612 mature stores)
- Earnings per share (pre-exceptional items):
- Diluted earnings per share up 8.6% to 23.9p (2012: 22.0p)
- Basic earnings per share up 8.1% to 24.0p (2012: 22.2p)
- Statutory basic earnings per share 10.7p (2012: 19.0p)
- Pre-tax exceptional costs of £27.5m of which £26.5m relates to impairments and other exceptional charges within our German business
- Final dividend increased by 11.4% to 8.80p per share (2012: 7.90p) bringing the total dividend for the year to 15.90p per share up 9.7% (2012: 14.50p)
- 57 new stores opened in the period (2012: 69 stores) with four closures (2012: two) resulting in a total of 858 stores in four countries as at 29 December 2013
- Online system sales increased by 28.2% to £338.0m (20122: £263.7m) with online sales accounting for 61.5% of UK delivered sales (20122: 56.1 %). Of this, 30.9% of online orders were taken through a mobile device (20122: 19.7%)
- Strong balance sheet with adjusted net debt5 to EBITDA3 of 0.3:1 (2012: 0.5:1)
Current Trading
Like-for-like sales in the first seven weeks of 2014 are as follows:
UK (£) – 14.6%
ROI (€) – 4.6%
ROI (€) – 3.8%
Switzerland (CHF) – -0.4%
Interim Chief Executive Officer, David Wild, commented on the results:
“It’s been another strong year for Domino’s and I am particularly delighted by the sales performance in our core UK business, which has continued into 2014, confirming the strength of our offer for both new and existing customers. The recovery in the Republic of Ireland is also pleasing. Whilst we have learnt some hard lessons in Germany, we now have a clear way forward and must focus on the delivery of this change in direction.
”We sold 65.5 million pizzas across the Group during the year and created over 1,500 jobs, which is no mean feat. I’d therefore like to give a big thank you to my colleagues and franchisees who have all been crucial in delivering this result, through their commitment to this great brand.
”We remain focused on delivering our strategy into 2014 and beyond and I am excited by the numerous initiatives I see in all areas of the business. By working with the franchisees and my colleagues at Domino’s, I look forward to fulfilling my role over the coming months to progress the Group’s exciting growth plans for the future.”
1 Total sales made by all franchisee and corporate stores in the UK, Republic of Ireland, Germany and Switzerland to the public. It is not revenue attributable to Domino’s as it is derived mainly from stores owned by franchisees
2 The financial year 2012 included 53 weeks in total. To provide a more meaningful comparison, the like-for-likes and system sales figures stated for 2012 have been adjusted to 52 weeks by excluding the first trading week of the 2012 financial year. However, all income statement and balance sheet related comparisons are for the 53 weeks ended 30 December 2012
3 Pre-exceptional items
4 Like-for-like sales are sales in UK stores that were open before 2012 compared to the corresponding 52 week period in the prior year
5 Excludes Domino’s Leasing Limited’s non-recourse loans and the non-controlling shareholder loan in Germany
About Domino’s
Domino’s Pizza Group plc is the leading player in the fast-growing pizza delivery market and holds the exclusive master franchise to own, operate and franchise Domino’s Pizza stores in the UK, Republic of Ireland, Germany, Switzerland, Liechtenstein and Luxembourg. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991. In April 2011, the Group acquired a majority stake in the exclusive master franchise to own, operate and franchise Domino’s Pizza stores in Germany. In September 2012, the Group acquired the master franchise for Switzerland, Luxembourg and Liechtenstein and an option to acquire the Master Franchise Agreement in Austria prior to the end of 2014.
As at 29 December 2013, there were 858 stores in the UK, Republic of Ireland, Germany and Switzerland. Of these, 663 stores are in England, 56 are in Scotland, 33 are in Wales, 21 are in Northern Ireland, one is on the Isle of Man, three are mobile units, 48 are in the Republic of Ireland, 23 are in Germany and 10 are in Switzerland.
Customers in the UK can order online at www.dominos.co.uk, in the Republic of Ireland at www.dominos.ie, in Germany at www.dominos.de and in Switzerland www.dominos.ch. In addition, mobile customers can order by downloading Domino’s free iPhone, iPad and Android apps.