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Domino's Pizza Group PLC on Tuesday reported full-year revenue and profit growth on a recovery in its collections channel, despite ongoing challenges related to inflation and recruitment.
In the year to December 26, the Buckinghamshire-based pizza delivery chain recorded a pretax profit of £109.7 million, up 11% from £98.9 million recorded in 2020. On an underlying basis, profit rose 13% to £113.9 million.
This was on revenue growth of 11% to £560.8 million from £505.1 million.
Domino's credited this performance to total orders growth of 5.5% in 2021, a ‘good’ delivery sales performance and a recovery in sales through collections.
‘Covid-19 and the associated restrictions dampened the collection market significantly at the start of the year but, as restrictions eased, collection volumes recovered well,’ Domino's said.
The takeaway chain declared a final dividend of 6.8 pence, resulting in a total dividend of 9.8p for the year, up 7.7% from a total full-year dividend of 9.1p in 2020.
Domino's noted that trading in the first quarter of this year has ‘started well,’ supported by its first national price campaign for several years.
The pizza delivery chain expects to deliver underlying earnings before interest, tax, depreciation, and amortization and earnings per share in line with current market expectations. It expects to deliver sales growth, primarily driven by increased store openings and like-for-like growth.
Domino's also plans to focus on raising awareness of the collection channel, primarily through promotion in national campaigns.
‘We continue to see a significant opportunity to drive an increase in collections to accelerate our growth. Our aspiration is to grow our collection business faster than delivery and double our market share in the UK collection market over the medium term,’ the company stated.
The company also plans to execute a new £46 million share buyback, following its £80 million share buyback announced and completed in 2021.
Nonetheless, Domino still flagged challenges with soaring cost pressures and ongoing recruitment difficulties.
Shares were up 1.3% at 352.60 pence each on Tuesday in London.
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