Sunday 16 June 2019

Domino's hit by 'growing pains' despite Christmas record

Domino's had its busiest week ever in the run-up to Christmas with the UK and Ireland business. Photo: PA
Domino's had its busiest week ever in the run-up to Christmas with the UK and Ireland business. Photo: PA
Louise Kelly

Louise Kelly

Domino's Pizza has said it expects to post full-year profits at the lower end of expectations but business across the UK and Ireland has proven robust.

The firm is to report full-year underlying pre-tax profit at the lower end of the consensus range, £93.9m to £98.2m, (€108m to €112m) amid "growing pains" internationally.

With weaker sales and integration challenges, particularly in Norway where like-for-like sales fell 6.4pc, it expects its international business to book a loss of up to £4m (€4.6m) for 2018.

CEO David Wild said that this business offers "significant long-term potential, but we have experienced growing pains this year, particularly in Norway, where we have faced business integration challenges".

The company cited unseasonably warm weather and the integration of two Norwegian operations it bought in 2017 as "more complex and challenging than expected" as reasons behind the expected loss.

Meanwhile, Domino's had its busiest week ever in the run-up to Christmas with the UK and Ireland business as sales rose 6.2pc in the fourth quarter to £312.9m (€360m).

"I'm pleased with the continued strong performance in the UK and Ireland, where we opened a further 59 stores," said Mr Wild.

"Many families decided to kick off the festive season with a Domino's, with the Friday before Christmas breaking all records as we sold more than 535,000 pizzas - equivalent to 12 every second."

Irish Independent

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