Domino's online sales rise with two orders every second
20 February 2019, Written by Business News Australia
Domino's plans to dominate digitally and online are falling into place, with the company announcing it now receives two pizza orders online every second.
This bewildering figure has resulted in the company seeing online sales during 1H19 rise by 16.5 per cent or $132.2 million.
Alongside significant contributions from Japan and Europe, Domino's online storefront helped push the company's overall sales up 14.6 per cent to $1.43 billion during the half.
More than half of the company's EBITDA came from Europe and Japan which delivered $71 million together.
Globally sales grew by 3.3 per cent reflecting strong performances in Japan, Germany, Belgium, and New Zealand. Domino's says sales in Australia were softer than usual and lower than expected in France.
The company, the largest master franchisee of Domino's outside of the United States, now has more than 1000 Domino's stores in Europe, 700 in Australia, and 300 in Germany.
CEO and managing director Don Meij (pictured) says the company's success overseas is testament to the teams on the ground in those countries.
"With a population base in our current overseas markets more than 12 times Australia, our global business provides not only a significant runway for future growth, but also a natural hedge against short term conditions affecting any single country, or region," says Meij.
Despite sales success net profit was down by 9.2 per cent to $53.3 million.
Underlying profit actually rose by $5.3 million, up 8.4 per cent, but one-off costs relating to the company's efforts in Europe dragged the net profit down.
Australia/New Zealand CEO Nick Knight says he expected the brand to do better in the ANZ region.
"We've come through an unprecedented cost headwind and have been able to do so because more of the close work with our franchisees and customers with new products and technology to make stores more efficient, and to give our customers great value," says Knight.
"Growth has been very strong in New Zealand and in Australia, where growth in fast food has been slowing, we've continued to grow our market share."
"We expected higher sales growth and a performance better than we delivered, and we will be redoubling our efforts to do both in the months ahead."
Shareholders seem to have reacted negatively to Domino's disappointing performance in Australia with shares down 7.23 per cent to $42.58 per share at 10.16am AEDT.
Business News Australia
Author: Business News Australia