# Domino’s Pizza Group achieved further like-for-like growth - Link: https://www.directorstalkinterviews.com/dominos-pizza-group-achieved-like-like-growth/412756368 - Published: 2018-08-07T07:45:08+01:00 - Author: Charlotte Edwards **Domino’s Pizza Group** (LON:DOM), today announced results for the 26 weeks ended 1 July 2018. **Financial highlights** · Group system sales up 12.8% o UK system sales up 8.3%: 22 new stores, 5.9% like-for-like growth (Q2: 4.7% LFL); ROI sales up 2.5% o Strong local currency international growth: Switzerland +13.0%, Iceland +5.5%, Domino’s Norway +180.5%, Sweden +56.4% · Underlying PBT up 2.5% and Underlying Basic EPS up 6.8% · Statutory PBT down 9.7% and Basic EPS down 6.5% · Non-underlying expenses of £4.0m relating to M&A integration and IT and supply chain transformation cash outflow · Net debt £182.1m, 1.62x LTM EBITDA at period end · Interim dividend +8.0% to 4.05p; £38.9m share purchases in H1 2018 | | 26 Weeks Ended 1 July 2018 | 26 Weeks Ended           25 June 2017 | Change | | Group System Sales^(1) | £616.6m | £546.5m | 12.8% | | UK & ROI System Sales^(1) | £565.1m | £522.7m | 8.1% | | UK Like-for-Like^(2) System Sales^(1)excluding impact of split territories | 5.9% | 2.4% | | | Underlying^(3) Profit before tax | £45.7m | £44.6m | 2.5% | | Underlying^(3) Basic EPS   | 7.8p | 7.3p | 6.8% | | Dividend per share | 4.05p | 3.75p | 8.0% | | Net debt | £182.1m | £61.0m | £(121.1)m | | | | | | | STATUTORY REPORTING | | | | | Statutory Revenue^(4) | £259.1m | £211.3m | 22.6% | | Statutory Profit Before Tax   | £41.7m | £46.2m | (9.7)% | | Basic EPS | 7.2p | 7.7p | (6.5)% |   **Strategic progress** · Digital investments to support franchisee efficiency and drive customer engagement o GPS in 603 UK & ROI stores: significant labour efficiencies; H1 franchisee store profitability up 5.3% o Investment in new e-commerce and app platforms planned, to improve the customer experience further · Strong operational focus in acquired businesses o London: volume-driven growth, staff turnover down o International: labour cost issues affected H1; actions taken now coming into effect’ · Warrington Supply Chain Centre operational, production ramped to 130 stores · Full year Underlying PBT expected to be in line with current market expectations o Around 60 new UK stores for 2018, of which several uncertain on timing; unchanged long term target of 1,600 o Total Group capex around £30m o Completion of £50m share purchase programme > **Commenting on the results, Domino’s Pizza, Chief Executive Officer David Wild > said:** > “It’s been another good trading period for Domino’s. In the UK, despite continued > consumer uncertainty, we’ve achieved further like-for-like growth by maintaining > our clear focus on product, service and value for customers. Our ongoing investments > in supply chain infrastructure and our IT platform will support future growth > and customer engagement. Domino’s is proud to be one of the most successful franchise > businesses in the UK, and we will continue to work with our franchisee partners > to promote the brand and the strength of the system. > “Whilst our international businesses continue to make good progress with customers > and sales, it has taken us some time to refine the operating model and cost base > at store level, particularly in Norway. We are confident that the changes we have > made will result in a better performance in H2, and believe that these businesses > offer significant long term growth potential as we export our expertise in digital, > supply chain and franchisee management. > “The Board expects that full year Underlying Profit Before Tax will be in line > with current market expectations6. Our confidence in the future is underlined > by continued growth in the dividend, and our ongoing investment in our own shares > through the buyback programme.” Share on: