Domino's Pizza posts rise in Q3 sales, sees FY profit in line
Domino's Pizza Group
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16:49 26/04/24
Domino’s Pizza said on Thursday that it expects full-year profit to be in line with market consensus despite the uncertain backdrop, as it reported a rise in third-quarter sales and an "exceptional" digital performance.
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The company said annual underlying pre-tax profit will be in the expected range of between £93m and £98m.
During the third quarter, system sales in the UK and Ireland rose 18.7% to £342.1m. Domino’s said the cut in the UK VAT rate to 5% from 20% on 15 July helped franchisees to mitigate costs and enabled savings to be passed on to its customers.
Since the rate change, VAT has benefited reported UK system sales and like-for-like growth, the company said.
In the UK and Ireland, orders were up 11.8% in the quarter, with items per order and product mix both "encouraging". Domino’s said it was pleased with the performance of collection, which increased to 3.2m orders from 0.7m in the second quarter as collections were reopened across the majority of its estate.
The company also hailed an "exceptional" digital performance, with UK online sales up 35.6% and ROI online sales up 18%. Online sales now account for 95.1% of delivery sales in the UK.
Domino's said it benefited from staycations and the return of live sport on TV, although it was also affected by the reopening of some of its competitors following lockdown and saw weaker demand in university areas in September.
Chief executive officer Dominic Paul said: "We continue to work on a long-term strategic plan for the business. At the heart of our future plans is realignment with our franchisee partners and we are having detailed discussions to agree a sustainable way forward, although we continue to expect that these discussions will take some time."