Bringing in the Dough....What Domino's Half Year Results Tell Us
UK appetite for pizza undiminished, though Germany posts losses.
Domino's Pizza Group plc has announced its half yearly results for the period ending June 29 and they make for some interesting reading.
Though underlying margins and profits remain strong in the core UK market, Germany remains problematic for the group as it transitions from company owned to franchised outlets.
Commenting on the results, CEO David Wild said "I am pleased to report a strong first half performance for Domino's... We have now seen three successive quarters of double digit like-for-like sales growth in the UK...Germany continues to be challenging, but we remain committed to our plants".
Key highlights include:
- System sales increased by 14.9% to £375 mill
- Operating margin (ex Germany and Switzerland) of 21.7% (vs 21.2% in 2013)
- Operating profit (ex Germany and Switzerland) increased 15.3%
- Like for like sales increased 11.3% in the UK, 3.2% in Ireland, 2.9% in Switzerland, but were down 1.7% in Germany
- Basic earnings per share increased by 7.4%
- An interim dividend of 7.81 p was paid, an increase of 10%
