Category: Financial / Investment
Domino’s Pizza Group PLC on Thursday reported growth in profit in 2016 as it announced it has bought Norwegian pizza operator Dolly Dimple’s.
The takeaway pizza company said it has bought Dolly Dimple’s in collaboration with its Nordic partners Pizza Pizza Norway for GBP4.0 million. Dolly Dimple’s is the third largest pizza company in Norway, with 42 stores.
Domino’s plans to integrate Dolly Dimple’s into its start-up Domino’s operation in Norway, which currently has 12 operating stores.
Domino’s added that its shareholdings will be restructured and it will assume a controlling share in the Norway, Sweden and Iceland Domino’s businesses ahead of schedule. Domino’s will acquire the Iceland group’s 51% holding in Pizza Pizza Norway, increasing its stake in the Icelandic business to 51% from 49%.
“Dolly Dimple’s is a great operation with a loyal customer base, because of its great tasting pizzas. The Norwegian market has plenty of opportunity for growth and with Dolly Dimple’s stores and dedicated colleagues, alongside our expertise in digital and e-commerce, this acquisition will drive Domino’s growth across Norway,” Chief Executive David Wild said in a statement.
Separately, Domino’s reported growth in pretax profit in 2016 to GBP82.5 million from GBP73.2 million in 2015, as revenue rose to GBP360.6 million from GBP316.8 million.
The group said it achieved good sales growth in each of its geographic locations of the UK, Republic of Ireland and Switzerland, with system sales up by 14%, 23% and 33%, respectively.
In the first nine weeks of 2017, system sales rose by 8.3%, 12% and 18% in the three regions, respectively.
Domino’s will pay a total dividend of 8.00 pence per share, up from 6.92p the year before.
“We remain confident in the resilience and long-term potential of our business model and are committed to continue to invest with our franchisees for growth. We expect to open at least 80 new stores in the UK with further footprint expansion in all our overseas operations,” CEO Wild said.
Shares in Domino’s were trading down 13% at 342.60 pence on Thursday morning.