Basic earnings per share (EPS) and statutory profit before tax declined for Domino’s pizza, as announced today in the brand’s financial report for the first half of 2018.
Despite the fall in profit, which declined by 9.7% from £46.2m to £41.7m, revenue increased by 22.6% from £211.3m to £259.1m.
Group system sales also rose from £546.5m to £616.6m, on the same period last year.
The fall in EPS from 7.7p to 7.2p has been put down to its ambition to grow in Europe. According to the Financial Times, the decision to expand its empire on the continent had taken the shine of the profits.
The pizza firm, listed on the FTSE 250, has opened 60 new stores in 2018 and opened 90 last year, crossing the 1000-strong portfolio mark.
Commenting on the new financial report, Domino’s CEO, David Wild, said: “Whilst our international businesses continue to make good progress with customers and sales, it has taken us some time to refine the operating model and cost base at store level, particularly in Norway.
He added: “We are confident that the changes we have made will result in a better performance in H2, and believe that these businesses offer significant long term growth potential as we export our expertise in digital, supply chain and franchisee management.”
In the report, the brand outlined strategic progress with digital investments to support franchisee efficiency and a drive for customer engagement.
The financials also showed strong operational focus in acquired businesses. In London, staff turnover was down, while internationally, Domino’s acknowledged that labour costs affected the H1 results with the actions taken now beginning to come into effect.
Looking forward, 60 new stores have been highlighted for 2018 as part of the long term target of 1,600 stores, which remains unchanged.