Profits at Domino’s Irish arm to beat expectations

Fast food delivery firm Domino’s Pizza is forecasting “better than anticipated” profit for its Irish operation in 2013.

In its most recent financial year, in the twelve months to January 2012, the group reported pre-tax profit of some €2.4 million on sales of €21.1 million for its Irish stores. The group employs about 200 people in Ireland.

Dominos has posted a surge in fourth-quarter sales in the UK, with sales at its 670 UK stores open for more than a year rising by 10.9 percent in the 13 weeks to December 29th, well ahead of analyst forecasts which ranged from 1 to 4 percent, taking underlying sales growth to 7 per cent for the full year. Online sales jumped another 16 per cent, with overall trade helped by a marketing push, new products and the more favourable timing of the Christmas break.

The group said it expected full-year profit to be in line with market consensus, with higher losses in its fledgling German arm negating better than anticipated profit in the UK and Ireland.

Domino’s shares have slipped 20 per cent in six months after its expansion into Germany suffered higher than anticipated losses and the firm surprised investors last month by saying its boss Lance Batchelor would quit in April to join travel and insurance group Saga. Batchelor’s exit follows that of finance chief Lee Ginsberg and comes as analysts also express concern over the pace of the group’s UK store openings, which stood at 50 for the year, taking the total to 777. In October it had slowed the openings target to 50 from 60, with some analysts now expecting that figure to fall.

(Additional reporting Reuters)