Domino’s Pizza posts half Yearly results

Its reported system sales were down 5.6%.

Domino’s Pizza UK reported a 5.6% decline in its system sales to £710.5m in the 26 weeks ended 26 June 2022, compared to £752.3m posted in the same period last year.

In its financial highlights, the pizza delivery chain attributed the decline in the change in VAT rate. The fast food chains like-for-like system sales, excluding the VAT rate revision, grew by 2.4% with order counts up by 2.1%. 

Group revenue, which was not significantly impacted by the VAT change, was up 0.2%.

“Profitability is expected to be second half weighted. During the first half, underlying profit before tax was £50.9m, down £9.9m,” read the report.

It also said it will pass through the food cost inflation to franchisees on a lagged basis.

“We began passing on these increases during the first half of the year, but will not see the full impact until the second half,” it said, noting that this is their standard practice.

Commenting on the results, Dominic Paul, Chief Executive Officer said, “I’m proud that in the first half Domino’s grew order count, attracted more customers, and increased underlying sales despite unusually challenging market conditions. This is testament to the hard work of our world-class franchisees and all our colleagues across the system, and I’d like to thank them all."