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(Alliance News) - Domino's Pizza Group PLC said on Thursday reported first quarter order growth, despite lapping tough lockdown-boosted comparatives.
Ahead of its annual general meeting, the pizza delivery master franchiser reported strong trading in the first quarter, aided by its first national price promotional deal for "several years".
In the first quarter ended March 27, total orders grew 5.5%, "despite a strong comparative quarter last year". Last year's orders were boosted by lockdown measures in the UK.
Domino's further reported that order count growth this quarter was driven by the recovery of collections, which grew 45%.
However, delivery orders were 4.5% lower than the prior year due to the lockdown comparator.
But active customer growth increased 4.0% compared to the same period last year.
As a result of the higher rate of VAT in the quarter, UK & Ireland system sales were GBP365.9 million, down 1.5% on the first quarter of last year. Excluding the impact of the increase in the VAT rate, system sales increased 4.9% in the quarter.
Domino's Chief Executive Officer Dominic Paul said: "It's no secret that inflation is a key challenge for everyone at the moment and the current consumer environment is challenging, but our scale and integrated supply chain, as demonstrated in the Covid downturn, mean Domino's is well-placed to navigate the current conditions.
"What's more, at a time when family budgets are under pressure, Domino's remains an affordable treat everyone can enjoy, and we're redoubling our focus on offering our customers the best possible value this year."
The company's national price campaign kicked off in January and the programme was "made possible" because of a resolution to an ongoing dispute with its franchisees.
Under the terms of the deal, announced back in December, Domino's is to make a one-time capital investment of about GBP20 million, spread over three years, to boost digital acceleration. It will increase marketing investment and develop an improved new store incentive scheme, to encourage new site openings. The deal runs for an initial three years from January 3.
The company is the UK and Ireland's master franchiser for the wider Domino's brand. It supports its franchisees with supply chain management, digital systems and marketing.
Domino's Pizza Group's shares were down 4.6% at 317.40 pence each on Thursday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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