Pizza chain Domino's has seen a hike in annual profits and said it expects sales growth to ramp up in 2022 despite inflation and recruitment woes. The company reported pre-tax profits of £109.7 million for the year to December 26, up from £98.9 million the previous year.
On an underlying basis, profits rose 12.5 per cent to £113.9 million as like-for-like sales rose 10.9 per cent, excluding so-called split territories. It announced plans to hand back a further £46 million to shareholders, on top of the £80 million share buyback in 2021.
The group said trading had started well in 2022 despite coming up against tough comparisons from a year earlier when sales were boosted amid lockdown restrictions. Domino's said demand had been buoyed by its first national price campaign for several years – which was launched thanks to the resolution of a long-running dispute with franchisees – but it flagged challenges with soaring cost pressures and ongoing recruitment difficulties.
The group said it would look to "turbocharge" its pizza collection business, which it said would help as it battles against staffing troubles and rising wages. It is rolling out its recently launched in-car collection service this year to around 500 stores, having already added it to 422 sites by the end of 2021.
A Domino's spokesperson said: "We are well placed to adapt to changing market conditions and ongoing challenges related to inflation and recruitment. As such, we continue to expect an acceleration in underlying system sales growth."
In December, the group said it had agreed a deal to invest £20 million over the next three years, with franchise owners agreeing to increase the speed of new store openings. It also recently completed the exit from all directly operated international markets to focus on the key UK and Ireland markets.
For more stories from where you live, visit InYourArea.
