Domino's takes bigger slice of pizza market

Pizza delivery firm Domino's Pizza said UK like-for-like sales in the first half increased 5.7% after the wet weather and Euro 2012 helped demand and as it continues its expansion drive in Germany, the UK and Ireland.

"Trading since the half year end has continued in line with our expectations. While the consumer backdrop remains tough we are confident about the future and our expectations for the year as a whole remain unchanged," it said in a statement.

Domino's said good progress was being made in Germany as it opened four stores during the period. Like-for-like sales in the Republic of Ireland rose by 2.9% compared to an 8.4% decline the previous year.

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Despite the economic downturn, sales increased 11% to £286.9m in the 26 weeks ended 24 June 2012. Pre-tax profit, excluding Germany, rose 15.2% to £23.3m. Profit, including Germany, after exceptional items, rose to £21.5m from £19m the year before.

Domino's said a total of 23 new stores opened in the period and is on track to open 72 stores during the year creating over 600 new jobs.

Online sales, which account for 52.4% of UK delivered sales, remained strong, up 43.4% to £121.2m. Nearly 18% of online orders were taken through a mobile device.

Underlining its confidence in future trading, the interim dividend has been increased by 20% to 6.60p per share.

CJ