Dominos’ profits drop by 7.4% in H1

Pizza delivery company Domino’s has recorded a 7.4% drop in pre-tax profits for the first half of this year, ending 30 June.

Underlying pre-tax profits fell to £42.3m, compared with £45.7m for the same period last year.

Profits were impacted by “challenging” international performance, as international operating loss increased to £6.4m, compared with £1.8m loss in H1 2018. Net debt for the period increased to £238.8m, in part down to “Brexit-related stock building and some timing issues which are expected to unwind”.

Takings in UK and Ireland remained buoyant, as system sales rose by 5.5% to £595m, operating profit also saw an increase of 7.1% £51.6m.

The majority of the company’s business is around the online sales, which now accounts for 82% of UK system sales.

David Wild, CEO, Domino’s, said: “Our core UK and Republic of Ireland markets delivered a good performance, with system sales up 5.5% and underlying operating profit up 7.1%.

“Digital remains a key driver of customer engagement, with online now accounting for 82% of total sales in the UK. Although a small part of our business, we are delivering pleasing operational improvements in our London corporate store estate.”