Domino’s FY sales boosted by record Q4
In its final quarter, the group continued to make strong gains in UK takeaway market share, which rose to 8.0%, up from 6.8% the prior year, despite a challenging market
Domino’s UK has seen revenues rise by 7% to £600m in FY22, with like-for-like system sales up by 5.3% in the period, boosted by a strong Q4, where record quarterly orders were reported.
Profit-before-tax fell by 13.2% to £98.9m however, affected by an additional £2.4m accelerated amortisation and impairment relating to technology platforms, as well as an increase in interest of £4.9m.
Elsewhere, underlying EBITDA was down by 4.6%, with the group attributing its fall to the accounting treatment of its investment in cloud-based technology platforms (£5.2m).
Nonetheless, the group reported “excellent” momentum through Q4, with like-for-like system sales up by 13.9%.
In its final quarter, the group continued to make strong gains in UK takeaway market share, which rose to 8.0%, up from 6.8% the prior year, despite a challenging market.
The group said strong trading and market share gains throughout the quarter were driven by a continued focus on value, digital initiatives, growth in collections, Just Eat roll-out, collaboration with our franchise partners and the men’s football World Cup.
In total, Q4 orders hit 18.5 million, the highest ever quarter for the group, with total orders up 4.1% and collection orders up 27.9% vs. Q421.
Elias Diaz Sese, interim CEO said: “The reset of the relationship with our franchise partners in December 2021 has underpinned our strong performance in what has been 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. 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.”
He added: “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.”
