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Domino's Pizza FY Pre-tax Profit Down

Domino's Pizza Group plc (DOM.L) reported that its statutory profit before tax for fiscal year 2017 was 81.2 million pounds, down 2.0% year-on-year.

David Wild, Chief Executive Officer, said, "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."

Profit attributable to equity holders of the parent for fiscal year 2017 declined to 67.5 million pounds, from 71.8 million pounds last year. But, earnings per share grew to 13.6 pence from 12.9 pence in the prior year.

Underlying basic earnings per share for 2017 was 16.0 pence, representing 15.9% growth over last year. On a 52 week basis, underlying basic earnings per share was 15.7 pence, up 13.9%. Earnings per share growth was driven by strong sales growth, stable margins as a percentage of system sales, and a 1.4% reduction in the average share count as a result of share buybacks over the last two years.

Reported operating profit was 75.5 million pounds, down 9.0% year-on-year. This number includes our joint ventures in the UK and Germany, which are accounted for as associates and contributed 2.4 million pounds and 1.4 million pounds respectively.

Revenue for the year rose 31.6% to 474.6 million pounds. The drivers of revenue growth were store openings, like-for-like growth from existing stores, food cost inflation, the acquisition of majority stakes in our Nordic businesses, and a positive translation effect from a weaker sterling exchange rate. On a 52 week basis, revenue growth was 29.3%.

The company said it maintained strong growth track record for the ordinary dividend, raising it by 12.5% to give a total dividend for the year of 9.00 pence. The proposed final dividend of 5.25 pence per share will, subject to shareholder approval at the Annual General Meeting on 19 April 2018, be paid on 24 April 2018 to shareholders on the register at the close of business on 16 March 2018.

The company said it remains confident in the outlook for the Group. In the first eight weeks of 2018, UK system sales are up 10.9%, with like-for-like sales up 7.1%.

The company will continue to grow in the UK, getting closer to new communities through a target of 65-75 new store openings in 2018, and providing ongoing enhancements to service through our investments in technology and our supply chain. It expects capex for 2018 to be around 30 million pounds.

It plans to invest up to 50 million pounds in 2018 in share buyback programme.

by RTT Staff Writer

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