Domino’s profits up but snow hits sales

DOMINO’S Pizza, Britain’s biggest pizza delivery firm, said heavy snow hit UK sales at the start of 2013, after surging online demand helped to lift annual profit 11%.

The firm, which operates t he British, Irish and German franchises of the global delivery brand, said pre-tax profit for the year to December 30 was £46.7 million, up 10.8% on 2011, and in line with forecasts.

Domino’s promotions and popular online ordering service have struck a chord with cash-strapped British consumers opting f or cheaper nights in over more expensive meals out.

Store openings, online demand, new stuffed-crust products and a busy summer of sporting events all helped sales at UK shops open more than a year rise 5% in 2012, up from 3.7% a year earlier, the firm said. Group sales rose 13% to £598.6m.

Domino’s said online sales now made up 55.7% of UK delivered sales, up from 44.3% the year before.

Almost 20% of those orders came via mobile devices, it added, with demand in general being driven by more targeted marketing on social media forums like Facebook and Twitter.

Bad weather and heavy snow had hit progress at the start of 2013, the firm said, with 498 UK stores forced to close at some point during the first seven weeks of the year.

Shares in the firm, which upped its dividend by 16.2% to 7.9 pence, were down 12p, or 2.23%, to 525.5p.