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PRIVACY
Retail & Consumer

Domino's Pizza posts sales rise but warns of £60m writedowns

The firm says it will look to offload businesses in Sweden, Switzerland and Iceland

A Domino's Pizza venue(Image: publicity picture)

Domino's Pizza has served up a sales hike for the last three months of 2019, but warned of writedowns of up to £60m for the full year.

The British arm of the group said º£½ÇÊÓÆµ underlying like-for-like sales grew 3.9% over the 13 weeks to December 29, with online sales up 8.3%.

But it said º£½ÇÊÓÆµ comparable sales including stores opened near another outlet - so-called split territories - rose by a more muted 2.6%.

Domino's said its under-pressure directly-owned international business - which is being sold off as it beats a retreat from foreign markets - is expected to tumble to an operating loss of around £20m in 2019.

The firm also revealed full-year results are set to see a hit of around £20m in impairment charges for corporate stores and up to £40m for its international business.

The group said it is prioritising the sale of its hardest-hit overseas division in Norway, which is suffering "significant" losses, and will look to offload businesses in Sweden, Switzerland and Iceland next.

"We are focused on securing the best possible terms for shareholders and are working closely with Domino's Pizza Inc throughout," the group said.

The update showed that international sales fell 1.4% in local currencies over the fourth quarter.