Top story
Domino’s Pizza Group has increased annual sales after an “outstanding” performance in the final quarter, boosted by a rollout on Just Eat and the football World Cup.
The delivery group reported a like-for-like sales rise of 13.9% in the fourth quarter and an increase in UK takeaway market share to 8%, compared with 6.8% a year earlier.
Total orders in the three months rose 4.1% to 18.5 million, which is the highest figure recorded in a quarter for the group. However, like-for-like volumes declined -2.1% and like-for-like orders were up just 1% versus the same quarter pre-pandemic despite a 6% larger store base.
Domino’s increased like-for-like sales in the year ended 25 December 2022 by 5.3% to £1.5bn, while total orders grew 1.6%.
The group highlighted that 90% of sales were now digital, with app orders as a percentage of online orders at 52.2% and app customers up 16% to 6.1 million.
The performance was helped by the roll out on Just Eat in 1,167 stores following “a very successful trial”.
Underlying EBITDA slippped 4.6% year on year to £130.1m as a result of the accounting treatment of investment in cloud-based technology platforms.
Interim CEO Elias Diaz Sese said a reset of the relationship with franchise partners in December 2021 underpinned the strong performance in “an exceptionally busy year” for the business.
“We have accelerated the execution of our strategy with the return of national value campaigns, growth in collections, our launch on Just Eat and increased store openings, alongside a strong focus on service from our franchise partners,” he added. “At a time when customers have been looking for great value, Domino’s has delivered, and you can see the results in the numbers we’re announcing today.
“Our outstanding Q4 performance gives the business powerful momentum into this year and there’s a lot to be excited about. Strong national value campaigns, continued growth of collections, accelerated new store openings, digital initiatives and a full year on the Just Eat platform are all set to drive further growth. We are confident that our asset-light business model, our franchise partners’ relentless focus on service, and digitally focused investment will deliver further market share gains and create value for shareholders.”
Domino’s added that it had continued to grow market share in 2023, with like-for-like sales in the first 10 weeks up 10.8%, orders up 2.5% and new app customers up 46%.
Shares sank 7.6% to 263.8p as investors focused on the fall in profits and the disappointing guidance that adjusted EBITDA guidance was set to decline by about 1% this year.
Morning update
NWF Group, the specialist distributor of fuel, food and feed across the UK, has reported continued momentum in the second half.
The short trading update for the year ending 31 May 2023 said the “very strong” performance in the first half had carried into 2023.
It added that all three trading divisions continued to be “strong”, with performance in the third quarter ahead of internal expetations.
As a result, NWF now expected full-year results to be “significantly” ahead of market expectations, with pre-tax profits forecast to be not less than £17.5m.
Shares in the group soared 7% to 276p as a result of the statement.
Elsewhere, The FTSE 100 opened 0.6% lower this morning to 7,885.99pts.
Early risers so far today included Deliveroo, up 1.7% to 86.2p, Glanbia, up 1.7% to €13.25, and Hotel Chocolate, up 1% to 204p.
HelloFresh continued to be under pressure, down another 4.4% to €18.65, while Science in Sport is down 3.7% to 13p and DS Smith is down 2.9% to 333.1p.
Yesterday in the City
The FTSE 100 edged up 0.2% to 7,934.03pts.
Risers in food and drink included Finsbury Food Group, up 1.8% to 102.8p, DS Smith, up 1.9% to 342.6p, McBride, up 1.5% to 27.8p, and Coca-Cola HBC, up 1.2% to 2,186p.
HelloFresh was down heavily for a second day, falling another 4.4% to €19.51, while THG also fell 5.9% to 65.4p.
Hotel Chocolat sank 2.4% to 202.1p following a 60% drop in first-half profits as it retreated from international markets.
Bakkavor also fell 1.9% to 105p as rising costs weighed on annual profits.
No comments yet