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Domino's Pizza UK LFL Sales Up; Sees Weak EBITDA In H1

Domino's Pizza Inc. (DOM.L,DPZ) reported Wednesday that its UK like-for-like sales including splits for the period from March 23 to June 14 increased 5.1 percent. The LFL growth excluding splits was 6.1 percent.

In its trading update ahead of Annual General Meeting, the company noted that UK trading prior to the coronavirus-related lockdown was robust, driven by increased order count. During the lockdown period, sales performance from delivery grew rapidly with an increase in order count and a growth in items per order and therefore average ticket.

This increase in sales from delivery more than offset the lack of sales from collection, however total order count has declined.

In Ireland, LFL sales including splits for the period fell 9.2 percent and excluding splits dropped 7.9 percent.

For the first half of the year to date period, UK LFL sales including splits grew 3.7 percent, while Ireland LFL sales including splits fell 5.9 percent.

Looking ahead for the first half, the company expects EBITDA to be slightly lower year on year.

CEO Dominic Paul noted that the company has taken considerable additional costs across its operations during the lockdown period for the necessary changes. These costs would more than offset the benefits from the increased sales.

The company remains unable to provide guidance for the full year due to the Covid-19 related uncertainity.

Domino's Pizza is scheduled to release first half results on August 11.

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