Domino's Like-For-Like Sales In Ireland Decline
Domino's has released its interim results for the 26 week period that ended on June 28, 2020, revealing that the pizza chain's like-for-like sales in Ireland declined by 3.6% excluding splits, and 4.9% including splits, during the period.
Meanwhile, the company's UK like-for-like sales increased by 4.8% excluding splits, and 3.7% including splits; switched off collection due to COVID-19 resulted in collection orders declining 87% in Q2; Q2 delivery orders increased by 22%; underlying UK and Ireland earnings before interest and taxes (EBIT) declined by 4.1% to £49.5 million, including £6.2 million of COVID-19-related costs; statutory profit, including loss from discontinued international operations, amounted to £19 million; and the company's net debt declined to £202.1 million.
Additionally, UK online sales increased by 15% and app sales increased by 19%. UK online sales now account for 93% of Domino's delivery sales.
A deferred FY19 dividend of 5.56p per share, amounting to £26 million in total, will now be paid on September 18, 2020, to all shareholders who on the register as of August 21, 2020, and the company's board will review the appropriate total dividend in respect of FY20 along with the company's preliminary results in March of 2021.
"A Resilient First Half Performance"
Domino's CEO Dominic Paul stated, "I am pleased to report a resilient first half performance. Throughout these unprecedented times we have focussed on doing the right thing for our customers, colleagues, franchisees and communities. We view it as a privilege to have been able to stay open throughout the period. I have been hugely impressed by the hard work, dedication and agility of our colleagues and our franchisee partners to keep Domino;s delivering, and I would like to say a big thank you to the entire team.
"We have an amazing brand, an exceptional supply chain, highly experienced franchisee partners and a dynamic and responsive model. The relationship with our franchisees is challenging, and this situation dates back several years. Although I expect this to take some time to resolve, our performance during the period is a great demonstration of what we can achieve when we work together. Fundamentally, our interests are aligned, and I am hopeful that the long-term strategic plan we are currently working on will pave the way forward for a more constructive working relationship to the benefit of all parties.
"The macroeconomic, consumer and competitive backdrops for the second half of the year contain considerable uncertainties. Our system demonstrated responsiveness and agility in meeting the challenges presented through the lockdown period, although that did come at some inevitable and, in certain areas, considerable incremental costs. While trading in the first few weeks of the second half has been encouraging, it is too early to conclude on how consumer behaviour will evolve. We look forward to the remainder of the financial year, and to the long-term future of the business, with confidence in the strength of the brand and our operations."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.