Britain's Domino's Pizza posted a 46% fall in first half profit, as growth in its core UK business was held back by higher losses and charges in its fledgling German arm.
Domino's has seen system sales increase by 13.8% to £326.5m in 26 weeks ended 30 June However pre-tax profits (after exceptional items) have sunk from £21.5m to £11.6m.
Profit before tax, excluding Germany and Switzerland, increased 10.3% to £25.7m with sales up 6.4% in the UK.
This month the firm warned that losses at its two-year old German arm, which could eventually outgrow its core British business, would be as much as six million pounds this year - higher than anticipated due to increased training costs and a poor performance at some of its managed stores.
Commenting on the results CEO, Lance Batchelor, said: "I am pleased with the overall results for the first half - particularly the core UK and Ireland businesses which have shown strong like-for-like sales growth against challenging comparatives."
"Our franchise system leads the leisure sector and, with the majority of our business coming via a web and mobile platform, we are now truly an online retailer."
Online system sales increased by 29.2% (2012: 43.4%) to £156.7m (2012: £121.2m) with online sales accounting for 63.3% of UK delivered sales (2012: 52.4%). Of this, 27.5% of online orders were taken through a mobile device (2012: 17.9%).
Domino's, Britain's biggest pizza delivery firm with over 700 stores, has grown rapidly on the back of new products, promotions and online demand.
For more information on Domino's, see the latest research: Domino's Pizza
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