domino’s pizza › system › files › uploads › financialdo… · balance sheet 2003 2002...
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DOMINO’S PIZZA DOMINO’S PIZZA UK & IRLUK & IRL plcplcResults 2003
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STEPHEN HEMSLEY
Chief Executive
CHRIS MOORE
Sales & Marketing Director
TODAY’S TEAM
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AGENDAFinancial ResultsMarketBuilding The BrandFocusHighlightsStrategyCurrent Trading & ProspectsQ&A
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SYSTEM SALES UP 19.6 % TO £142.3m
0
20
40
60
80
100
120
140
2000 2001 2002 2003
£76.1m
£98.4m
£118.9m
SYSTEM SALES
£m
£142.3m
2003 FINANCIAL RESULTS
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No
of S
tore
s
0
10
20
30
40
50
2000 2001 2002 2003
STORE OPENINGS UP 47%
2224
34
50
2003 FINANCIAL RESULTS
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Popu
lation
0
50
100
150
200
250
300
350
2000 2001 2002 2003
STORE POPULATION
215237
269
318
2003 FINANCIAL RESULTS
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Mature Store Sales
Mature stores saw an increase of 7.4% compared to last year
Period1
Period2
Period3
Period4
Period5
Period6
Period7
Period8
Period9
Period10
Period11
Period12
2001 2002 2000 2003
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0
10
20
2000 2001 2002 2003
LIKE FOR LIKE SALES GROWTH
%
4.8%
21.4%
11.2%
7.4%
2003 FINANCIAL RESULTS
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PROFIT BEFORE TAX UP 54.2%
0
2000
4000
6000
2000 2001 2002 2003
£00
0’s
£4.24m
£6.54m
£2.19m
£2.87m
2003 FINANCIAL RESULTS
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UNDERLYING OPERATING PROFIT UP BY 48.6%
0
2000
4000
6000
8000
2002 2003
£00
0’S
£6.68m
£4.50m
2003 FINANCIAL RESULTS
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EARNINGS PER SHARE UP 61.1%
0
2
4
6
8
10
2000 2001 2002 2003
penc
e
5.60p
9.02p
2.61p
4.00p
2003 FINANCIAL RESULTS
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DIVIDEND PER SHARE UP 75%
0
2
4
2000 2001 2002 2003
penc
e
2.00p
3.5p
0.8p1.33p
2003 FINANCIAL RESULTS
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Analysis of Borrowings2003 2002
Bank - £8.17m
DP Capital + Lease £2.80m £2.02m
EBT £5.16m ___-___
Consolidated Borrowings £7.96m £10.19m
Cash (£3.72m) (£3.88m)
Net Borrowings £4.24m £6.31m
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Balance Sheet2003 2002
Shareholders’ Funds (pre EBT shares) £15.89m £11.70m
EBT Share £ 5.16m ___-___
Stated shareholders’ funds £10.73m £11.70m
Total Debt £ 7.96m £10.19m
Cash £ 3.72m £ 3.88m
Net Borrowings £ 4.24m £ 6.31m
Capital Gearing 40.9% 53.9%
Interest Cover 33.1 times 14.1 times
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SHARE PRICE
Market capitalisation at 225p - £120m(53,199,008 shares in issue)
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Market
o Home delivery market estimated at
£1.2 billion *
o New market data due out next month
o Pizza delivery market in 2003 forecast to have
doubled since 1997 *
(Source: Future Foundation/Mintel 2002)
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Building the Brand
o Four initiatives:
Direct Marketing system
Continued improvements on E-commerce infrastructure
(sales increase of 48% compared to previous year)
Sponsorship of The Simpsons on Sky One extended to 2006
Introduced a programme of “co-operative” regional TV
advertising
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Focuso Product
o Ingredients
o New Products
o Information
o Serviceo Increasing capacity in stores
o Imageo Image 2000 refits 90% complete
o Image 2005 to be launched in the Summer
o Safetyo All Commissary EFSIS Higher Level accredited
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2003 – A snapshot
300th Store opened in Aldershot
2500TH
International Store in Crosby
Winner of PizzaDelivery
Operator 2003(and 2002)
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RESULTS 2003 HIGHLIGHTS
o Pre-tax profit up 54.2%o Underlying operating profit up 48.6%o Earnings per share:
- Basic up 61.1% to 9p- Diluted up 58.6% to 8.4p
o All core bank debt repaid, cash resources of £3.7mo Dividend up 75% to 3.5p per share
o A record 50 stores opened in 2003
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Strategy
o Continued aggressive store openings
o Maintain like-for-like sales growth
o Control overheads and manage cash
o Return cash to shareholders
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Current Trading & Prospects
o Like for like sales up 4.3% for the
first six weeks of 2004
o Good pipeline of stores to open
another 50 stores in 2004
o Overheads and cash flow under
good control
o Optimistic for 2004 outcome
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ANY QUESTIONS?
RESULTS 2003