Domino’s Pizza half-year profits slip despite sales rise

The pizza chain’s pre-tax profits were down 4.6% to £48m in the 26 weeks to June 28, as it dealt with “unprecedented times”.

UK and Ireland sales increased 5.5% to £629m, as like-for-like sales increased 4.8%. 

Domino’s switched off its collection option during the lockdown to help keep customers safe, which triggered an 87% plummet in collection orders for the second quarter, while delivery orders grew by 22%.

Domino’s also said it incurred around £6.2m of Covid-related costs. 

Online orders now account for 93% of its delivery sales, with those placed via the website up 15% and via the app up 19% in the first half.

Chief executive Dominic Paul said: “I am pleased to report a resilient first-half performance. Throughout these unprecedented times we have focused on doing the right thing for our customers, colleagues, franchisees and communities.

“The macroeconomic, consumer and competitive backdrop for the second half of the year contain considerable uncertainties. Our system demonstrated responsiveness and agility in meeting the challenges presented through the lockdown period, although that did come at some inevitable and, in certain areas considerable, incremental costs. 

“While trading in the first few weeks of the second half has been encouraging, it is too early to conclude on how consumer behaviour will evolve. We look forward to the remainder of the financial year, and to the long-term future of the business, with confidence in the strength of the brand and our operations.”