FOOD SERVICES | Staff Reporter, UK

Domino's Group system sales surge 15.1% to £1,179.6m

Its total revenue rose 29.3% to £474.6m, on a 52 week basis.

The Company's ROI system sales increased 9.2%, whilst its like-for-like system sales grew 9.8%. The increase is driven by 95 new stores in 2017.

Domino's chief executive officer David Wild said, "2017 has been a year of significant progress for Domino's, despite the weaker consumer demand and cost inflation affecting the sector. Given this backdrop, I am particularly pleased with our performance. In the UK, system sales broke through £1 billion for the first time, helped by a record 95 new store openings. We also took action to improve value for customers, and this led to improved growth in H2, benefiting shareholders and franchisees alike. Our international operations are becoming a more material part of the Group. In Ireland and Switzerland, system sales growth accelerated, supported by very strong digital performance. In the Nordics, the move to majority control and the acquisition in Norway demonstrate our increasing confidence in the opportunity."

He added, "We continue to take a rigorous approach to capital allocation, balancing the long-term needs of the business with more immediate returns of value to shareholders through the ordinary dividend and share buybacks. The market continues to be competitive but the strength of our brand and scale, combined with the expertise of our franchisees, are important competitive advantages in delivering quality, convenience and value to customers. We continue to take share in the pizza delivery market, and the investment in our new supply chain centre in Warrington will leave us well placed to meet our ambition to get to at least 1,600 sites. I remain confident in the long term growth potential of the business."

For its outlook, the Company aims for 65 to 75 UK store openings in 2018 and Capex for 2018 of around £30m, reflecting completion of Warrington, corporate store roll-out and supply chain centre investments in international markets.

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