Business

Slice of the World Cup action helps Domino's

DELIVERY chain Domino's Pizza served up an extra helping of profits yesterday as first-half sales were boosted by the World Cup.

Pre-tax profits for the 26 weeks to June 29, excluding exceptional items, grew 10.1 per cent to £24.5 million while total sales rose 14.9 per cent to £375 million.

The chain's core UK market grew like-for-like sales by 11.3 per cent including a one per cent benefit from the impact of armchair football fans dialling up - or increasingly going online - to order.

Sales were bolstered by digital investment, promotions and products including a "Carnivale" range to coincide with the tournament and a "Footy Fan Feast" offer.

New chief executive David Wild said it was a strong first-half performance and pledged to drive forward the web and smartphone offering, with mobile expected to become the most popular channel in 2015.

The Domino's business in Europe, which is separate from its counterpart in the US, has 868 outlets, including 670 in England, 56 in Scotland, 33 in Wales, 21 in Northern Ireland and 48 in the Republic of Ireland.

Ireland sales continued a "solid recovery" to grow 3.2 per cent while in Switzerland, after a slow start to the year, they were up 2.9 per cent.

Mr Wild, the former Halfords boss whose interim role as chief executive was made permanent at the end of April, said Domino's had now seen three successive quarters of double-digit like-for-like sales growth in the UK.

He added: "I am especially pleased at the continued success of our e- and m-commerce platforms showing how customers enjoy and appreciate the benefit of ordering online. We are investing further to drive this even harder."

UK online sales grew 30.6 per cent to £204.7 million and now account for 69.7 per cent of delivered sales, up from 63.3 per cent the year before. The group said 38.3 per cent of online orders were taken through a mobile device, up from 27.5 per cent.

Mr Wild said: "We anticipate that mobile will become our most popular ordering channel in 2015."

He confirmed that Domino's still plans to open 40-50 UK stores this year as it seeks to maximise the potential of the "significant opportunity" that remains in the market.

"Equally, the UK performance illustrates the opportunity for the Domino's brand in other markets, as further evinced by its success elsewhere in the world."