Domino's Pizza Group (DOM) H1 2025 earnings summary

Executive summary

• Market share in the UK pizza takeaway segment increased by 560 basis points to 53.7%, despite a challenging consumer environment and declining takeaway and pizza markets.

• System sales rose 1.3% year-over-year to £777.8m, with group revenue up 1.4% to £331.5m, but underlying EBITDA fell 7.4% to £63.9m due to lower supply chain volumes and higher costs.

• Delivery times and customer service improved, supported by franchisee investment and operational focus, while automation and robotics projects in the supply chain are underway.

• Interim dividend increased 2.9% to 3.6p per share, reflecting confidence in the business model and long-term strategy.

• Acquisition of a controlling stake in Victa DP (Northern Ireland JV) completed, now fully consolidated.

Financial highlights

• System sales rose 1.3% to £777.8m and reported revenue increased 1.4% to £331.5m compared to H1 24.

• Underlying EBITDA declined 7.4% to £63.9m; underlying profit before tax fell 14.8% to £43.7m; underlying EPS down 14.3% to 8.4p.

• Statutory profit after tax dropped 29.3% to £29.9m; statutory EPS down 29% to 7.6p, mainly due to the prior year’s one-off profit from London store disposals.

• Free cash flow before non-underlying items was £25.7m, down from £30.5m in H1 24.

• Interim dividend per share increased 2.9% to 3.6p, with £29.4m paid out.

Outlook and guidance

• FY25 underlying EBITDA now expected in the range of £130m–£140m, revised down due to weaker consumer sentiment and higher employment costs.

• Technical guidance: depreciation & amortisation £20m–£23m, interest £17m–£19m, effective tax rate ~25%, capex ~£22m, year-end net debt £260m–£280m.

• Store opening targets remain, but at a slightly slower pace; long-term ambition for 2,000 stores unchanged, with mid-twenties openings expected in FY25.

• No anticipated improvement in the consumer environment until after the autumn statement; cautious franchisee investment expected.

• If no second brand acquisition by end of 2025, share buybacks are expected to resume.