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Interim Results

Domino's Pizza hikes divi as revenues rise

25 July 2017 07:25

Domino's Pizza Group's system sales rose by 10.5% to £546.5m in the 26 weeks to 25 June with underlying pre-tax profits up 9.1% at £44.6m.

On a statutory basis, revenues were up 19.8% at £211.3m but after-tax profits fell by 5.3% to £37.7m.

The board has recommended an interim dividend of 3.75p per share - up 7.1%.

Chief executive David Wild said:

"The first half of 2017 has been another period of good progress for Domino's Pizza Group, despite a more uncertain UK economic environment. The core business delivered strong year-on-year system sales, continuing to take pizza market share, with good like-for-like performance.

"We've had a record six months in the UK, opening 40 new stores and have consequently raised our expectations from 80 to 90 this year. I'm delighted we'll shortly be opening our 1,000th British unit and we are well on track to achieve our goal of 1,600.

"DPG continues to lead the pizza market, with innovations such as the popular Lotta-Chocca pizza and our launch today of Amazon Echo voice ordering. Following a successful trial, we'll be rolling out GPS, which will enable customers to track their delivery and help franchisees with labour management.

"This autumn, we'll invest around £4m to improve customer value, supported by a bold new advertising campaign.

"We've taken controlling positions in our Nordics operations and completed the acquisition of the Dolly Dimple's pizza chain in Norway, giving us immediate scale with promising early results in attractive markets, which are, as yet, underdeveloped.

"Our ongoing investment in growth, our new Warrington supply chain centre, digital capabilities and overseas expansion is balanced by returning capital to shareholders through dividends and share buybacks.

"Whilst we acknowledge that our UK consumers are currently more cautious about the economic outlook, we're focussing on growth investment with our franchisees; boosting marketing; improving customer engagement and enhancing our leading position in food delivery. Pizza remains the world's most popular delivered food, and Domino's is the top choice for consumers."

Story provided by StockMarketWire.com

Related Company: DOM

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