Domino sales in Ireland up by 26%

DOMINO PIZZA'S operations in Ireland have turned profitable, the company revealed yesterday.

First-half sales rose by just under 26% to £26.2 million, while pre-tax profit increased by 45% to £1.72m.

"As anticipated, the Irish commissary is now achieving a monthly profit and this is as a direct result of the opening of five new Irish stores," chief executive Stephen Hemsley said.

The pizza franchise group, which has 255 stores overall, is aiming to double that by 2006, including 30 new stores in Ireland. According to Domino, Brian McGoey, has single-handedly contributed 22% of total system expansion during the 26 weeks ended June 30 2002. He owns six franchise stores and plans to open even more.

Mr Hemsley said: "Our significant sales growth has also been greatly assisted by effectively communicating our focus on product, service and image, and the continued use of targeted and effective national, terrestrial TV advertising. This has been supported by continued sponsorship of The Simpsons on Sky One, and by additional advertising campaigns on a number of cable and satellite channels, which continue to communicate the benefits of our HeatwaveTM technology."

Domino broker Peel Hunt forecasts pre-tax profit to grow 34% to £3.83 million this year. Peel Hunt raised its forecast from £3.75 million. The company's share of the pizza-delivery and takeaway market, which is growing about 7% a year, rose to 25% in the half from 23% last year, Mr Hemsley said.

Domino's Pizza shares have doubled in past three years. The company said one problem in opening new stores was finding suitable premises.