By Max Clarke
Domino’s Pizza has bucked the trend of declining retail across the UK to post record sales of £258m.
The UK’s largest pizza delivery business, Domino Pizza UK & IRL plc (LSE: DOM), has capitalised on this boost in business to acquire a 75% stake in the German Domino’s franchise, as well as opening 22 new stores with the creation of 650 jobs.
“I am delighted to announce a good set of results in what can only be described as a very tough operating climate,” said the Group’s CEO, Chris Moore. “It is a real achievement to deliver like-for-like sales growth of 2.4% across 607 stores against a comparative figure of 13.7% (553 stores) and a VAT rise of 2.5%.”
Pre tax profits stood in excess of £20m, delivering a 3.4% return on shares.
“The coming months provide fantastic opportunities for the Company,” continued Moore. “While the first half of the year has been tough, we are delighted that we are still showing good growth in the UK and the latter half of the year comes with lower comparatives (9.9% for Q3 2010 against 17.2% for Q2 2010) so we are confident we will see our like- for-like sales grow more strongly in the next 26 weeks.
“Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months, we are very excited about the future.”
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