Domino’s Pizza Group (DPG) has announced its trading update for the third quarter of its 2022 financial year, with like-for-like (lfl) system sales excluding splits and changes in the VAT rate up 2.4% compared to Q3 FY21.
Total system sales up 19.6% compared to the same period in 2019 in Q3 FY22, which covers the 13 weeks to 25 September 2022. However, total sales were down 8.3% on Q3 FY21.
Delivery was down 12.7%, while collections were up 28.1% - 5.1 ppts above 2019 levels.
The decline in total orders was attributed to comparison with the Euros tournament in July 2021 and the ‘staycation’ impact in August. However, September was a stronger trading month.
The pizza chain further reported a strong start to Q4, with lfl system sales up 10.4% and total orders up 2.6% in the first six weeks.
Takeaway market share rose from 6.4% in Q3 FY21 to 7.2% in Q3 FY22.
DPG expects FY22 EBITDA to be in the range of £125m - £135m, in line with current market expectations.
It has also announced a new £20m share buyback programme “as a result of strong recent momentum and confidence in the future.”
DPG opened 21 new stores this year and expects to open a further c70 stores by the end of FY23.
It has also announced the brand’s rollout on Just Eat nationally, to be completed by the end of 2022, following a successful trial.
Performance is driven by a focus on digital, strong national value campaigns, growth in collections, and the initial incremental benefit of being on the Just Eat platform, according to the update.
The company has hedged its gas and power requirements until the end of September 2024, and fuel until the end of June 2023.
It further reported it has exercised options on its German investment.
Interim CEO Elias Diaz Sese commented: “We continued to take market share and grew underlying sales in the quarter, despite the tough comparator. I’m pleased that we have made a strong start to our important final quarter.
”This has been driven by a focus on service by our franchise partners, our focus on digital, strong national value campaigns, collections growth and the initial benefit of being on the Just Eat platform. We’re looking forward to our busiest weeks of the year with the men’s football World Cup and the festive season to come.”
“I am delighted to announce two important strategic milestones for our business. First, we have decided to roll out Domino’s on Just Eat across the UK and Ireland following a very successful trial which delivered incremental customers and orders.
”I’d like to thank our franchise partners for all their hard work to make this a success. Secondly, we have exercised our option to sell our investment in Germany, which will allow us to be solely focused on accelerating our strategy in the UK and Ireland and delivering further cash returns to shareholders.”
“Having been on the Board for the past three years, and as a shareholder, I am very confident the current strategy is the right one and I am committed to execute it at pace.
”I’ve spent my first month travelling and meeting with our franchise partners, suppliers and colleagues, and I’d like to thank Dominic Paul and David Surdeau for their support during the handover, and for their tremendous contribution to Domino’s during their time with us.”
