Domino’s first-half sales up 11%

The group said system sales had risen by 11% to £286.9m in the 26 weeks to 24 June, with like for like sales in its 662 mature stores up by 5.2%—and by 5.7% in the UK. Operating margins outside of its Germany operation were up a percentage point at 20.9%, and pre-tax profits rose 15.2% to £23.3m. Basic earnings per share were up 11.8% at 10.3 pence.

Domino’s said it had opened 23 new stores in the first half of the year, and was on track for a total of 72 throughout 2012—ten more than it opened in 2011. It also hailed its online sales, which leapt by 43.4% to £121.2m in the first half of the year. Online sales now account for more than half (52.4%) of all delivered sales in the UK—with mobile devices now accounting for 17.9% of all those orders. The figures confirm Domino’s as one of the leaders of online commerce in this or any other sector.

Domino’s CEO Lance Batchelor said: “I am delighted to be able to report such a strong set of half year results. Our franchisees have made the most of the opportunities presented by a combination of rain, sport and national celebrations and delivered some great figures during the second quarter.”

He was optimistic about the second half of the year. “The coming months should provide a real opportunity for our business. We have great new locations coming into play in the UK, our 1-2-1 marketing programme is showing encouraging returns and the opportunity in Germany is looking better by the day. Add to this the best franchisees in the business and the future looks bright. Trading since the half year end has continued in line with our expectations. While the consumer backdrop remains tough we are confident about the future and our expectations for the year as a whole remain unchanged.”

The figures were in line with expectations of analysts, who broadly welcomed the news. Numis said ongoing trade should benefit from new products, low food cost inflation and increased marketing spend, especially on its digital platforms, while Panmure Gordon held its whole year forecasts and recommendations.