Home Business Domino’s Pizza profits up after ‘exceptional’ digital performance during lockdown

Domino’s Pizza profits up after ‘exceptional’ digital performance during lockdown

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TAKEAWAY chain Domino’s Pizza saw its sales increase by 2pc in Ireland for the 13 weeks  to September 27.

The group recorded an “exceptional” digital performance, with online sales in Ireland up 18pc year-on-year during the period.

In the UK, the government’s Vat  cut has helped Domino’s serve up a surge in sales as Britons staycatio ned over the summer.

Domino’s posted an 18.3pc hike in UK like-for-like sales for the 13 weeks as franc hisees boosted sales by passing on the government’s July Vat cut – from 20pc to 5pc –    on hot takeaway food . 

Sales rose 17.3pc excluding stores opened near another outlet in so-called split territories.

The group said demand for takeaway pizzas jumped as the pandemic forced people to holiday in the UK this year, helped also by the return of live sports on TV.

But it said there was pressure on sales in September as more rivals reopened after lockdown and as many students delayed going to university this autumn.

Shares also dropped as much as 12pc as it revealed the Vat sales boost in the UK had “limited direct benefit to our profitability”, while overall orders were hit as takeaway collections remain under pressure.

Dominic Paul, chief executive of Domino’s, said: “We welcome the UK government’s reduction to Vat in mid-July which helped franchisees mitigate costs and gave them the opportunity to pass savings on to customers.”

He said the group expects to see annual underlying profits meet expectations at between £93m (€102.5m) and £98m, but analysts questioned the ongoing earnings growth potential as orders continue to flag.

Domino’s revealed order numbers fell 7.8pc, including split territories, as collections were still 42.9pc lower in the third quarter, having only reopened for this service from early July. 

Online Editors

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