Domino's Pizza Group UK, a franchisee of the US-based Domino’s Pizza, has registered a 19.6% growth in its first-half revenues, benefitting from the acceleration of store launches.

The LSE-listed entity’s revenues climbed to £332.9m ($425.8m) in the half year ended 25 June 2023, versus £278.3m in the prior year, driven by the opening of another 29 sites and “pass-through of food costs”.

In comparison, the number of new outlets opened in H1 2022 was 12.

The pizza chain’s like-for-like system sales increased 7.9% to £766.4m in H1 2023 from £710.5m a year ago, with sales of £725m and £41.4m in the UK and Ireland, respectively. Total orders rose 2.8% year-on-year to £35.4m.

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) was up by 8.2% to £68.7m from £63.5m.

Net debt was reduced by 27% to £171.4m from £236.4m while underlying pre-tax profit remained flat at £50.9m.

The franchisee, which operates in UK and Ireland, has now lifted its full-year profit projection, forecasting underlying EBITDA between £132m and £138m.

It has also announced an interim dividend of 3.3p a share, a 3.1% rise from 3.2p a share last year, along with a new £70m share repurchase programme.

Speaking to Reuters, Domino's Pizza Group interim CEO Elias Diaz Sese said that the business will not increase its products’ costs “right now”, given that prices of cheese and pizza boxes in the country have begun to stabilise.

Product costs were hiked the previous year amid soaring inflation in the UK.

Sese said that the prices of certain ingredients such as cheese and avocado, have slumped consistently in recent months, though surging meat prices remain a hurdle.