American pizza chain Domino’s saw total revenue increase by 29.3% to £474.6 million this year – having published its preliminary financial results for the 53 weeks to 31 December 2017 today (8 March).
Having reached £1 billion system sales in the UK for the first time, the group is also celebrating 95 new store openings and “improved value for customers,” as it continues to expand across the UK.
For purposes of comparability – 2017 being a 53-week reporting period – all growth rates are given on a 52-week basis, with group highlights listed below:
2017 total revenue of £474.6m, up 29.3% on a 52 week basis
Group system sales of £1.2m, up 15.1% on a 52 week basis
UK and Ireland system sales up 9.2% at £1.1m
UK like-for-like system sales up 4.8%
Net debt increased by £54.6m to £89.2m
Total profit after tax from continuing operations is £66.8m
Underlying profit before tax up 10.2% at £94.4m
95 new store openings
“Record” investment into UK to support long term growth
On-going programme of digital investment GPS
Franchisee profitability maintained at 2016 levels
Looking ahead, Domino’s reported UK system sales were up 10.9% (7.1% like-for-like) in the first eight weeks of 2018, with plans to open a further 65-75 stores across the country this year.
Chief executive David Wild said: “2017 has been a year of significant progress for Domino’s, despite the weaker consumer demand and cost inflation affecting the sector.
“Given this backdrop, I am particularly pleased with our performance. In the UK, system sales broke through £1 billion for the first time, helped by a record 95 new store openings. We also took action to improve value for customers, and this led to improved growth in H2, benefiting shareholders and franchisees alike.
“Our international operations are becoming a more material part of the group. In Ireland and Switzerland, system sales growth accelerated, supported by very strong digital performance. In the Nordics, the move to majority control and the acquisition in Norway demonstrate our increasing confidence in the opportunity.
“We continue to take a rigorous approach to capital allocation, balancing the long-term needs of the business with more immediate returns of value to shareholders through the ordinary dividend and share buybacks.
“The market continues to be competitive but the strength of our brand and scale, combined with the expertise of our franchisees, are important competitive advantages in delivering quality, convenience and value to customers.
“We continue to take share in the pizza delivery market, and the investment in our new supply chain centre in Warrington will leave us well placed to meet our ambition to get to at least 1,600 sites. I remain confident in the long term growth potential of the business.”