LONDON --Pizza delivery company Domino's Pizza
Sales increased by 11% to 287 million pounds and profit before tax increased by 13% to 22 million pounds, showing the company's ability to fully capitalize on the rain-drenched first six months of the year and the public's preference for staying in over going out during that period.
Like-for-like sales in the U.K. increased 5.7% and in the Republic of Ireland increased by 2.9%.
Basic earnings per share advanced 12% to 10.16 pence and the interim dividend increased by 20% to 6.60 pence per share.
Domino's online sales continue to perform well, showing an increase of 43% to 121 million pounds to account for 52% of U.K. delivered sales. This increase was lifted by a push on orders via mobile devices. In fact, 18% of online orders were through mobile devices, which shows that Domino's is well-placed to establish a large portion of smartphone and tablet orders when that submarket begins to mature.
Commenting on the results, chief executive Lance Batchelor said:
I am delighted to be able to report such a strong set of half year results. Coming on top of a solid start to the year during the first three months of 2012, we have delivered like-for-like sales growth of 5.2% across the system in the first half. In addition, it has been a very busy and successful first half for our emerging German business with four new stores opened. Our franchisees have made the most of the opportunities presented by a combination of rain, sport and national celebrations and delivered some great figures during the second quarter.
The coming months should provide a real opportunity for our business. We have great new locations coming into play in the UK, our 1-2-1 marketing programme is showing encouraging returns and the opportunity in Germany is looking better by the day. Add to this the best franchisees in the business and the future looks bright.
Trading since the half year end has continued in line with our expectations. While the consumer backdrop remains tough we are confident about the future and our expectations for the year as a whole remain unchanged.
The results were not received well by the markets, however, with a fall of 14 pence, or 2.6%, to 505 pence against a general fall in the FTSE of 2.15%.
However, this morning's update from Domino's should remind you how dynamic growth companies can become wonderful investments for ordinary investors. Indeed, Domino's shares have jumped more than 25-fold since their 2002 low.
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