Domino's Pizza serves up strong half year profits
The soggy summer and Euro 2012 football championship helped the group as more people order takeaways
By CFOWorld staff | CFO UK | Published 12:38, 23 July 12
Domino's Pizza reported a half yearly pre-tax profits leap thanks to rainy weather and the Euro 2012 football championship, the group said on Monday, as more people stayed in to watch TV and ordered takeaways.
Britain's biggest pizza delivery company which operates the British, Irish and German franchises of the global delivery brand, said on Monday pre-tax profit for the six months to June rose 13.2 percent to £21.5 million.
"We must be one of the few people every day who come in and do rain dances at work, we love the rain because it keeps people in their homes," said Domino's chief financial officer Lee Ginsberg.
"But it's not just the weather, we did launch some very successful products ... and Euro 2012 helped our business as well," he said.
Domino's is one of the few companies to thrive in the soggy summer, which has hit sales and profits at retailers such as Kingfisher and JJB Sports amid an already difficult retailing climate.
Online sales rose 43.3 percent over the six months to £121.2 million, and now account for more than half of delivered orders in the UK, Domino's said.
Like-for-like sales in the UK, where it has performed strongly despite an economic downturn, rose 5.7 percent up from 3.4 percent in the year before, while like-for-like sales in Ireland were up by 2.9 percent.
The company said it had opened 23 new shops and closed one during the period, giving it a total of 748, and added that it was confident of hitting its target of 60 new UK stores and 12 Germany stores by the end of the year.
The company intends to open another 18 stores in Germany next year. It hopes the German business will grow to twice the size of its British operation and will be profitable by 2015.
"Germany is coming along strongly, we're seeing some very encouraging and exciting early stages of growth there," Ginsberg said.
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