Domino’s Pizza Group PLC (LON:DOM) has announced its half year results for the 26 weeks ended 29 June 2025
| H1 251 | H1 241 | % change | |
| System sales2 | £777.8m | £767.8m | +1.3% |
| Group revenue | £331.5m | £326.8m | +1.4% |
| Underlying3 EBITDA | £63.9m | £69.0m | (7.4)% |
| Underlying3 profit before tax | £43.7m | £51.3m | (14.8)% |
| Statutory profit before tax | £40.5m | £59.4m | (31.8)% |
| Underlying3 basic EPS | 8.4p | 9.8p | (14.3)% |
| Statutory basic EPS | 7.6p | 10.7p | (29.0)% |
| Interim dividend per share | 3.6p | 3.5p | +2.9% |
Tougher operating environment results in lower Underlying FY25 EBITDA guidance
· Weaker consumer sentiment
o H1 25 total orders flat
o H1 25 like-for-like sales4 down 0.1% with Q2 down 0.7%
· Lower than expected store openings; franchisees cautious given increased employment costs
o 11 stores opened year-to-date
o FY25 new store openings now expected to be mid-twenties; healthy pipeline for 2026
· H1 25 Underlying EBITDA down 7.4% to £63.9m
· Now expect FY25 Underlying EBITDA in range £130m to £140m
Resilient business model and strength of Domino’s system drives market share gains
· DPG taking significant market share in H1 25
o DPG’s share of UK takeaway market +20bps to 7.2%5
o DPG’s share of UK pizza takeaway market +560bps to 53.7%5
· Outstanding supply chain delivering to 1,381 stores
o Automation projects under way and on track to deliver further efficiencies
· Customer service continues to improve with average delivery times down across UK
o H1 25 down to 24.1 minutes (H1 24: 24.6 minutes)
· Loyalty trial performing ahead of expectations in all customer cohorts, on track for 2026 launch
· Successful completion of ERP system across all supply chain centres
· Significant growth opportunity in Republic of Ireland due to under penetration vs. UK
Highly cash-generative business model with clear capital allocation policy
· H1 25 Underlying free cash flow of £28.7m before £8.5m capex invested in core business
· 2.9% increase in interim dividend, to 3.6p per share reflecting confidence in the business
· Increased stake in Victa DP, our JV in Northern Ireland, from 46% to 70% in March 20257
· Continued balance sheet strength with refinance successfully completed, securing an extended and expanded RCF facility6 on improved terms
· Assessing opportunities for second brand within strict financial & strategic guardrails
o No opportunities under current consideration would require equity issuance
o Whilst a second brand remains a core part of the strategy, if no acquisition announced by end of 2025, Board expects to resume share buybacks
Commenting on the results, Andrew Rennie, CEO said:
“Against a more difficult market backdrop, Domino’s is significantly increasing its market share by offering great value, innovative products and even faster delivery times. This is a result of a relentless focus from our colleagues and franchise partners, and I’d like to thank them all for their hard work.
“There’s no getting away from the fact that the market has become tougher both for us and our franchisees, and that’s meant that the positive performance across the first four months didn’t continue into May and June. Given weaker consumer confidence, increased employment costs and uncertainty ahead of the Autumn Statement, franchisees are taking a more cautious approach to store openings for the time being.
“Despite these near-term challenges we remain confident in our strategy and the prospects for our resilient, market-leading business. That confidence is demonstrated by our decision to increase the interim dividend, and we also continue to assess a range of accretive growth opportunities.”
Current trading and outlook
We have seen total orders and like-for-like sales improve towards the end of July after a softer start due to the tough comparator period with the Men’s Euro 2024 knockout stages. Consumer confidence remains weak impacting sales growth, and with employment costs increasing and the uncertainty ahead of the Autumn Statement, we now expect FY25 Underlying EBITDA to be in the range of £130m to £140m8.
We remain confident that our investments in key areas such as our loyalty programme and automation, as well as our growth ambitions in Ireland, will deliver sustainable growth and returns going forward.
Our technical guidance for FY25 is as follows:
· Underlying depreciation & amortisation of between £20m to £23m
· Underlying interest (excluding foreign exchange movements) in the range of £17m to £19m
· Estimated underlying effective tax rate of c.25% for the full year
· Capital investment of c.£22m
· Net debt at year-end between £260m and £280m
Results meeting
A results meeting and Q&A for investors and analysts will be held at 09:30 BST today. The webcast and presentation can be accessed here and will also be available on the Results, Reports and Presentations page of our corporate website.
In addition, we will replay the webcast and Q&A at 16:00 BST today for North American based investors not able to join the live presentation at 09:30 BST this morning.
Notes
1. H1 25 is the 26 weeks to 29 June 2025. H1 24 is the 26 weeks to 30 June 2024
2. System sales represent the sum of all sales made by both franchised and corporate stores to consumers in UK & Ireland. These are excluding VAT and are unaudited.
3. Underlying is defined as statutory performance excluding items classified as non-underlying which includes significant irregular costs, significant impairments of assets and other costs associated with acquisitions and disposals as set out in note 4 to the financial information.
For H1 25, underlying excludes reacquired right amortisation of £3.0m and £0.2m in strategy costs, which represent legal and professional fees of £1.7m offset with a fair value gain of £1.5m on the remeasurement of the original 46% Victa DP investment prior to acquiring control. Taxation credit of £0.1m.
4. Like-for-like (excluding splits) system sales performance is calculated for UK & Ireland against a comparable period in the prior period for mature stores which were not in territories split in the current period or comparable period. Mature stores are defined as those opened prior to 31 December 2023. Excluding splits means that stores which have lost delivery territory to enable a new store opening are not included in like-for-like system sales.
5. Copyright © Kantar UK Limited 2025. All use is subject to Kantar UK Limited’s terms and conditions. Kantar shall not be liable for any loss howsoever arising from or in connection with the interpretation of, or any action taken by it based on, any conclusions, findings or recommendations which are required of Kantar as part of the Syndicated Services. Kantar shall not be liable for any losses, third party claims, demands, damages, costs, charges, expenses or liabilities (or actions, investigations or other proceedings in respect thereof) whether direct or indirect, arising from or in connection of the Syndicated Services being provided and used beyond the Client’s internal use.
6. The Group successfully amended and extended the RCF facility in July 2025, increasing the available facility to £300m and extending the facility to July 2030. The unsecured multi-currency revolving credit facility incurs interest at a margin over SONIA of between 165bps and 265bps depending on leverage, plus a utilisation fee of between 0bps and 30bps of the aggregate amount of the outstanding loans. The previous RCF incurred a margin over SONIA of between 185bps and 285bps.
7. In March 2025, DPG purchased an additional 24% in Victa DP Ltd for £25.5m (£7.0m equity, £18.5m debt funding), our joint venture in Northern Ireland, bringing DPG’s shareholding to 70%.
8. Current mean of FY25 Underlying EBITDA expectations is £146.1m with a range of £140.8m – £149.2m. Based on 9 analysts’ forecasts.
