Domino’s welcomes ‘resilient’ performance despite profit hit

Domino’s UK and Ireland has welcomed a “resilient” UK and Ireland performance in its half-year results, with UK like-for-like sales up 4.8% in the period ended 28 June, 2020. 

In its second quarter, however, collection orders were down by 87% as this service was halted amid lockdown, though delivery orders increased by 22% in the same period. 

Total underlying EBIT fell by 4.1% to £49.5m, which included £6.2m of Covid-19 related costs, while statutory profit, including loss from discontinued International operations, fell by 15.2% to £19m. 

Nonetheless, UK and Ireland system sales still rose by 5.5% to £628.9m in the half-year period, while net debt fell by 15.4% to £202.1m, down from the £238.8m debt reported the year before. 

Following this, its deferred FY19 dividend of 5.56p per share, amounting to £26m in total, will now be paid on 18 September to all registered shareholders.

Dominic Paul, CEO of the group, welcomed the “resilient” first-half performance. 

He said: “We have an amazing brand, an exceptional supply chain, highly experienced franchisee partners and a dynamic and responsive model. The relationship with our franchisees is challenging and this situation dates back several years. 

“Fundamentally our interests are aligned and I am hopeful that the long-term strategic plan we are currently working on will pave the way forward for a more constructive working relationship to the benefit of all parties.”

He added: “The macroeconomic, consumer and competitive backdrop for the second half of the year contain considerable uncertainties. Our system demonstrated responsiveness and agility in meeting the challenges presented through the lockdown period, although that did come at some inevitable and, in certain areas considerable, incremental costs. 

“While trading in the first few weeks of the second half has been encouraging, it is too early to conclude on how consumer behaviour will evolve. We look forward to the remainder of the financial year, and to the long-term future of the business, with confidence in the strength of the brand and our operations.”