Dominos saw a 97% increase in statutory profit after tax, going from £38.6m in 2020 to £78.3m 2021, as the pizza chain recovers from the pandemic.
Domino’s top line saw an 11% growth to £560.8m. Underlying profit before tax is £113.9m, up 12.5% from 2020 as a result of strong underlying trading.
Recovery from the pandemic, saw a 5.5% growth in order sales in 2021. Collection orders are still recovering but delivery performed well. Digital channel sales contributed to 91.2% of system sales. Average delivery time was around 25 minutes sustaining the group’s service standards.
Franchisee Resolution and Ventures
In an attempt to speed up long and short term growth, Dominos are set out to tap into their franchisees to help drive new stores and boost marketing.
Investment of £20m has been spread over 3 years to make developments in their e-commerce app development and in-store innovations. Marketing investments have grown too, in order to promote new national campaigns.
Franchisee’s have committed to increase the sales through creating a schedule for new stores, resulting in 45 new stores each year for the next 3 years, out of which 30 have already opened for this years quota. In contrast to previous years, a commitment on participating in the upcoming promotional deals has also been agreed upon. The franchisees have agreed to trial and test new technology and innovations for the benefits of the group.
Investments of £6.6m for 46% shares with an association who is operating 22 stores in Northern Ireland to enable future growth plans of the franchisee. The group has exited from directly operated international markets to focus on the UK and Ireland markets.
The group has opened their 3rd supply chain centre in Cambuslang, Scotland.
Net debt has increased 16.2% to £199.7m as the company paid dividends of £56m and share buybacks of £80m. The proposed final dividend for 2021 is 6.8p bringing the total dividend to 9.8p. The dividend yield is 2.9% which is fairly decent compared to the FTSE 250 average.
“There were two major milestones in the year. First, the launch of our new strategy, which is already delivering outstanding results and a better experience for our customers.”
“Secondly, the resolution with our franchisees which has unlocked further potential within the system. Our franchisees are world class operators and the whole team is already embracing a new era of collaboration, with the system working together more closely than ever before,” said Dominic Paul, Chief Executive Officer, Dominos.
Domino’s shares sunk over 5% in early trade on Tuesday morning, before shares recovered to trade just 1% down at the time of writing.