Domino's Pizza Group said on Thursday it expects to meet market expectations for 2020 profit as a lower value-added tax rate and higher online orders helped it post a 19% jump in third-quarter sales.
The company's UK and Ireland system sales rose to £342.1 million pounds in the quarter ended Sept. 27, from £288.2 million a year earlier.
The company, a franchise of U.S.-based Domino's Pizza Inc , has also benefited from the reopening of contact-free collections and the return of sporting events.
Domino's said it expects annual underlying pretax profit to range between £93 million and £98 million, compared with £98.8 million for 2019.
A reduction in the UK's value-added tax rate to 5% from 20% in July helped Domino's in controlling costs, which had weighed on the company's first-half profit as it spent more on cooking and delivering its pizzas safely during the pandemic.
"At the heart of our future plans is realignment with our franchisee partners and we are having detailed discussions to agree a sustainable way forward," Chief Executive Officer Dominic Paul said, referring to a profit-sharing row with its franchisees. (Reuters)
Source: www.businessworld.ie
