Domino’s boosted by UK sales but costs hamper Norwegian business
The pizza company has been building its presence in Switzerland, Iceland, Norway and Sweden.
Domino’s has been boosted by its UK sales, but warned over a high cost base in its Norwegian business.
The pizza group reported sales of £616.6 million for the 26 weeks ended July 1, up 12.8% from the comparable period in 2017.
Its profit before tax fell 9.7% during the period to £41.7 million.
Domino’s said its growth had been driven by the UK market, with sales rising 8.1% from £522.7 million to £565.1 million.
The group’s franchisees opened 22 new stores in the first half of the year, bringing its total outlets in the UK to 1,067.
Domino’s said it expects around 60 openings in the UK this year.
The pizza brand has also been building its presence in Switzerland, Iceland, Norway and Sweden.
Chief executive David Wild said it was taking “some time” to iron out the company’s operations internationally, and that its costs were particularly high in Norway.
Mr Wild said: “It’s been another good trading period for Domino’s. In the UK, despite continued consumer uncertainty, we’ve achieved further like-for-like growth by maintaining our clear focus on product, service and value for customers.
“Whilst our international businesses continue to make good progress with customers and sales, it has taken us some time to refine the operating model and cost base at store level, particularly in Norway.”