Domino's reports strong sales boosted by Euros
Pizza brand Domino's has reported a strong sales performance in the UK and Ireland with like-for-like system sales up 19.3%, aided by the reduced rate of VAT and boosted by the Euros, with the England vs Scotland match on 18 June its top trading day this calendar year.
The group also reported underlying profit before tax of £60.8m, up 27.7%, driven by lower Covid-19 related costs, for the 26 weeks ended 27 June 2021.
Domino's said it believed the return to normality will benefit its collection business, which is expected to gradually recover, while the delivery side of the business will face more competition as the hospitality trade reopens. The brand said it believed continued investment in developing its offer will allow it to maintain its performance.
As the scheduled VAT rate increases are implemented, Domino's system sales growth will be lower in the second half. However, while changes in VAT impacted reported system sales growth, it had limited flow-through to profitability.
Chief executive Dominic Paul said: "I am delighted with the performance of the business in the year to date. We've worked closely with our franchisees to maintain fantastic service levels to our customers, while continuing to prioritise the safety of our colleagues and customers. I'd like to thank everyone in the system for their incredible commitment through the pandemic.
"We have continued to invest in the business as we focus on delivering our strategy with the opening of a new state of the art supply chain centre in Scotland, the launch of our redesigned mobile ordering App, and the roll-out of our supercharged marketing campaign, which has strengthened our brand and significantly boosted awareness levels.
"The strong trading in the first half of the year provides us with the firm foundations for the delivery of our strategic growth objectives, which build upon our strengths in both delivery and collection. This will enable us to deliver strong system sales growth and increase our store numbers in the UK and Ireland.
"While the external landscape remains uncertain, the second half has started well. I believe our agile business model leaves us well placed to capitalise on the significant opportunities ahead while continuing to invest in our strategy, which will deliver benefits for franchisees and shareholders alike."
