Domino Pizza UK and Ireland has reported pre-tax profits of £18.7m sterling for 2007, up 33% from the £14.1m reported in 2006. The pizza chain has 34 outlets in the Republic, with a further 12 in Northern Ireland.
Sales for the year ending December 31, 2007 rose by 23.4% to £296.3m, up from £240m in 2006. The company also predicted another year of strong growth for 2008.
Domino Pizza said that the 'unprecedented increases' in the prices of raw materials since the middle of 2007, in particular milk and wheat, had a significant effect on both the group and its franchisees.
The company said this was exacerbated by its cheese supplier going into receivership and the ending of its fixed price contract.
'As a result, new supply arrangements saw the cost of cheese increasing by over 50% over the course of the year,' the company said.
It added that the price of wheat also recently increased significantly in price, but by less than the 100% Domino's had feared and is now fixed for the remainder of the year.
'The outlook for pricing in 2008 looks more stable,' the group added.
It said the increases in raw material prices have now been passed on to the company's franchisees, who have had time to reflect them in their menu prices. The new menu pricing which fully recovered all cost increases, saw increases average around 4%, the company said.
