Domino's Pizza posts 10% rise in first half profitTuesday 29 July 2014 08.02
Domino's Pizza has posted a 10% rise in first half profit as improved marketing and promotions drove up sales, though the firm said its expansion in Germany was still proving troublesome.
The British group, which also operates in Ireland, Switzerland and Germany, said pretax profit for the 26 weeks to 29 June rose to £24.5m, in line with analyst expectations.
Sales at British stores open over a year rose 11.3% over the period as the firm benefited from later trading hours, growing online sales, demand for new bundled offers and an extra boost from the Fifa World Cup.
The group said it was also seeing improved consumer confidence in its sector, with discretionary spend on the rise.
In Germany, where Britain's biggest pizza delivery firm's much-anticipated expansion plans have been hampered by restructuring costs and weak trading, the firm said conditions continued to prove challenging.
The firm has slowed German expansion while it gets to grips with store formats, overheads and growing sales and said it had yet to transfer all of its poorly-trading own-managed stores there to franchisees - a move Domino's hopes will boost sales.
Chief Executive David Wild said the firm was committed to its plans for the fledgling division, which closed four outlets in the half and posted an operating loss of £4.7m.