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Domino’s Pizza Group PLC said on Wednesday its annual profit dropped despite an increase in revenue, as it booked additional technology costs. The Milton Keynes, England-based firm said its pretax profit dropped 9.8% to £98.9 million in the year ending December 25, compared to £109.7 million the previous year. Domino’s Pizza Group is the master franchise of the international pizza delivery chain Domino’s Pizza. Domino’s explained that profit was hurt by £7.6 million worth of technology platform costs. Finance costs were 23% at £24.0 million. Revenue, however, rose 7.0% to £600.3 from £560.8 million, boosted by increased food costs and a record number of orders in the last three months of 2022. The company said it sold 18.5 million orders in the final quarter of 2022, making it its best-ever quarter. Domino’s proposed a final dividend of 6.8 pence per share, unchanged from a year ago. This brings the total dividend for 2022 to 10.0p, up 2.0% from 9.8p. Interim Chief Executive Officer Elias Diaz Sese said: ‘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.’ Domino’s added: ‘As we enter the third year of our growth strategy, we are focused on accelerating its execution, through five key areas of focus: franchise partner profitability & organisation, value for money, digital, convenience, and technology platform projects. Our asset-light business model and value proposition mean we are well placed to succeed in a challenging trading environment, and we remain confident that we will make further financial and strategic progress, and increased returns for our shareholders.’ Shares were down by 9.6% at 258.20 pence each in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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