Domino’s profits fall 4.6pc in H1

dominos
A row of mopeds operating for the Domino's Pizza takeaway chain parked in Westminster, London.

Domino’s Pizza has released results for the six months leading up to June 2020.

Despite an increase in delivery orders, the group reported collection orders to drop by 44% resulting in a 4.6% fall in pre-tax profits to £47.6m.

Domino’s made the decision to offer contact-free delivery only between March and July. Collection orders for Q2 were down by 87%.

Amid the pandemic, the group invested £3.4m on face masks and “contact-free delivery boxes” for a hygienic delivery.

Despite the slide in pre-tax profits, chief executive officer Dominic Paul celebrated the results, however, remained uncertain for second half.

“Throughout these unprecedented times we have focused on doing the right thing for our customers, colleagues, franchisees and communities. We view it as a privilege to have been able to stay open throughout the period,” he said. 

“We have an amazing brand, an exceptional supply chain, highly experienced franchisee partners and a dynamic and responsive model.  The relationship with our franchisees is challenging and this situation dates back several years. Although I expect this to take some time to resolve, our performance during the period is a great demonstration of what we can achieve when we work together.”

“The macroeconomic, consumer and competitive backdrop for the second half of the year contain considerable uncertainties. Our system demonstrated responsiveness and agility in meeting the challenges presented through the lockdown period, although that did come at some inevitable and, in certain areas considerable, incremental costs,” he added. 

Shares in Domino’s (NYSE: DPZ) are trading at 389.74 (1734GMT).