Domino's launches £46m share buyback as profits rise

Sales rose 11.2% to £1.5 billion.

Domino's Pizza Group unveiled a £46 million share buyback shortly after posting higher annual profit that was driven by a surge in post-lockdown sales.

The company reported underlying pre-tax profit reaching £113.9 million from £101.2 million a year earlier. On a statutory basis, profit more than doubled to £78.3 million from £38.6 million, citing reduced international losses.

Sales rose 11.2% to £1.5 billion, with like-for-like system sales up 10.9% excluding splits.

Trading in the first quarter had started well helped by its first national price campaign for several years, Domino’s said, after resolving a dispute with franchisees which saw the latter refuse to open new stores unless they would receive an increased share of profits.

“Overall order count and customer acquisition continues to be positive, despite being up against a comparative quarter last year when there were strict lockdown restrictions in the UK,” the company said.

“We continue to expect an acceleration in underlying system sales growth (excluding the benefit of the reduced rate of VAT), largely driven by increased store openings and like-for-like growth due to the operating and capital investments associated with the franchisee resolution and continued implementation of our strategic plan.”

Domino's Pizza Group declared a final dividend of 6.8p a share for a total of 9.8p, up 7.7%.