Strong UK performance drives 17% profit growth

Domino's Pizza Group plc ('DPG' or the 'Group'), the leading pizza company in the UK, announces its results for the 52 weeks ended 25 December 2016.

Financial Highlights 52 Weeks Ending
25 December 2016 		52 Weeks Ending
27 December 2015 		Change
System Sales £1,004.2m £877.2m 14.5%
UK Like-for-Like System Sales
(excluding impact of split stores) 		7.5% 11.7%
UK Like-for-Like System Sales 9.8% 13.5%
Underlying Profit before tax £85.7m £73.2m 17.1%
Underlying Basic EPS 13.8p 11.9p 15.6%
Net (debt)/cash balance £(34.6)m £40.4m £75m
Recommended Total Dividend per share 8.00p 6.92p 15.6%
Statutory Revenue £360.6m £316.8m 13.8%
Statutory Profit After Tax £65.2m £59.3m 9.9%
Basic EPS
continuing operations 		13.1p 11.9p 10.3%

Highlights

  • Total UK sales growth of 14%, including like-for-like of 7.5% and record number of new stores - 81 (2015: 61)
    • Average sales per address (ASPA) in new stores grew 15%
    • Targeting at least 80 new stores in the UK for 2017, creating up to an estimated additional 3,000 new jobs
    • Planned new Supply Chain Centre in Warrington due December 2017, creating 200 additional jobs
  • Continued success of digital investment programme in the UK
    • On-line now represents 72% of system sales
    • Up by 21% year-on-year
    • Mobile represents 73% of digital sales, up by 31%
  • Further increase in franchisee profitability fuelling investment in growth
  • Improving system sales performances in international businesses
    • Republic of Ireland (ROI) delivering 10% year-on-year growth in local currency
    • Switzerland delivering 21% year-on-year growth, in local currency, including 1 new store - EBITDA positive
    • Conversion process of stores in Germany following Joey's acquisition delivered successfully 6 months ahead of plan
    • Solid start in Nordics
  • Strong cash flow conversion enabling investment in growth and share buy-backs
  • A recommended final dividend of 4.5p giving a total dividend of 8.0p, growing 16% year on year

Current Trading

Sales growth in the first nine weeks of 2017 trading is as follows:

Total sales growth LFL sales excluding splits LFL sales including splits
UK 8.3% 3.9% 1.5%
ROI 12.3% 12.3% 12.3%
Switzerland 17.7% 9.4% 9.4%

During this period, we have opened 11 stores in the UK (2015: 5 stores).

Commenting on the results, Chief Executive Officer David Wild, said:

'2016 was another successful year for Domino's Pizza Group and this performance is reflected in today's financial results. The UK delivered strong year-on-year growth due to robust like-for-like sales and the opening of 81 new stores. This performance, combined with our tight control of costs, has generated a significant rise in profits and a dividend payment of 8.00p per share. Our cash conversion remains very strong and we have reinvested through International expansion and returned cash to shareholders through dividends and share buy-backs.

'We remain confident in the resilience and long-term potential of our business model and are committed to continue to invest with our franchisees for growth. We expect to open at least 80 new stores in the UK with further footprint expansion in all our overseas operations.

'I would like to thank the DPG team for their continued hard work. I also want to pay tribute to our franchisees whose tireless endeavours ensure that our customers continue to enjoy great pizzas with great service every day - whether ordered online or by phone, delivered to the door or collected in store.'

For further information, please contact:

Domino's Pizza Group plc:
David Wild, Chief Executive Officer
Rachel Osborne, Chief Financial Officer
020 7379 5151

Maitland:
James Devas, Robbie Hynes
020 7379 5151

Credit Suisse
Camilla Hughes, Hugh Preston
020 7888 8888

Numis Securities Limited
Christopher Wilkinson, Toby Adcock
020 7260 1000

A presentation to analysts will be held at 9.00am on 9 March 2017 at LSE Theatre, London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS

Domino's Pizza Group plc published this content on 09 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 March 2017 07:08:10 UTC.

Original documenthttp://investors.dominos.co.uk/media/news/preliminary-results-52-weeks-ended-25-december-2016

Public permalinkhttp://www.publicnow.com/view/7127BD91EB6D37336A70D26D97BC5224274F2B3D