Domino's tastes delight with $2.9 billion in global sales
Written on the 21 August 2019 by Business News Australia
The staff at Domino's have certainly earned this year's corporate pizza party with the group cracking $2.9 billion in global sales during FY19.
The 11.9 per cent increase by $308 million in food sales comes as the Brisbane-based company continues to push internationally.
Domino's stores in Japan led the charge for the group's international operations, which now contribute more earnings to the group than Australia and New Zealand, accounting for 54.7 per cent of the company's underlying EBITDA of $282.4 million.
Customers in Japan appear to have fallen for Domino's, with the country generating $80.5 million in earnings during the financial year.
The company now has 2,531 stores in eight countries on three continents. This year the group passed the milestone of having 1,000 Domino's stores in Europe, plus 700 in Australia, and 600 in Japan.
At the end of FY19, Domino's revenue was up 24.4 per cent to $1.4 billion, and net profit after tax was up 6.1 per cent to $115.9 million.
CEO Don Meij is excited about the future.
"We believe there is significant future potential in our existing Domino's businesses," says Meij.
"Our combined markets have a population greater than the USA, and a GDP greater than China, and we intend to build out this opportunity."
In Europe sales were up 11 per cent to $1.2 billion, which Europe CEO Andrew Rennie says is the result of constant expansion in the region and the conversion of the Hallo Pizza brand into Domino's stores.
"The Benelux delivered another tremendous performance, Germany is now benefitting from a single focus on Domino's with the completion of the conversion of Hallo Pizza stores, and new leadership is delivering a much-improved result in France in the second half," says Rennie.
Back in Australia, CEO of Domino's Australia/New Zealand Nick Knight says domestic growth was softer than expected.
"We made strategic decisions this year that delivered short-term headwind, which we are confident are for the medium- and long-term benefit of our hard-working franchisees, helping their continued growth," says Knight.
"We are confident in the progress of our strategic initiatives, including our investment in technology and new marketing campaigns. Our world-first DOM Pizza Checker is already helping to deliver meaningful improvements to the quality of our pizzas, which customers recognise."
In the first weeks of FY20, nine organic new stores have been constructed and opened for trading.
The company will pay shareholders a final dividend of 52.8 cents per share on 12 September.
Shares in Domino's are down 3.83 per cent to $42.71 per share at 11.04am AEST.
Business News Australia
Author: Business News Australia