DOMINO’S Pizza Enterprises has reaffirmed its full-year guidance for Australia and Europe and lifted its guidance for Japan after increasing profit following its acquisition of Domino’s Pizza Japan. Net profit rose by 28.2 per cent to $18.6 million in the six months to December 2013. Revenue soared 89.49 per cent to $265.4 million in the first half. Domino’s will pay an interim dividend of 17.7c, fully franked, on March 11 to shareholders on the record on February 24.
The pizza maker reaffirmed its Australia/New Zealand and Europea guidance of 15 per cent growth in full-year earnings before interest, tax, depreciation and amortisation (EBITDA). Domino’s upgraded EBITDA growth guidance for Japan to be in the region of 25 per cent for the full year. The upgrade follows the group’s acquisition of a 75 per cent shareholding in Domino’s Pizza Japan.
Domino’s Group managing director Don Meij said December was a record sales month in the Japanese market of ¥3.6 billion ($39.4 million), up from a previous record of ¥2.9 billion, and noted the group had surpassed Pizza Hut in total network sales to be number two in the Japanese market.
Domino’s Pizza Japan has added 21 new stores since the acquisition. The group opened 60 new stores globally in the half, including 25 in Australia and New Zealand, and has another 25 store openings planned in Australia and New Zealand in the second half of the year. Globally, Domino’s has a network of 1290 stores, and has upgraded its future outlook for group store count to 2750 stores. In Japan, it expects improvements from an upgrade of email systems, relocation of stores to higher-profile locations and the rollout of a new store image.
Domino’s Group managing director Don Meij said December was a record sales month in the Japanese market of ¥3.6 billion ($39.4 million), up from a previous record of ¥2.9 billion, and noted the group had surpassed Pizza Hut in total network sales to be number two in the Japanese market.
Domino’s Pizza Japan has added 21 new stores since the acquisition. The group opened 60 new stores globally in the half, including 25 in Australia and New Zealand, and has another 25 store openings planned in Australia and New Zealand in the second half of the year. Globally, Domino’s has a network of 1290 stores, and has upgraded its future outlook for group store count to 2750 stores. In Japan, it expects improvements from an upgrade of email systems, relocation of stores to higher-profile locations and the rollout of a new store image.
In Europe, Domino’s expects the French market to improve in the second half after lifting marketing spend, increasing digital investment and restructuring its marketing team. The group is also increasing trading hours in the Netherlands to include lunch. Domino’s has agreed to issue shares with a value of approximately $380,000 to a business partner as part of an initiative to open new stores.
It expects the shares will be issued in March at market price and will not raise any cash as it represents the company’s contribution towards the commercial arrangements.
The shares will be escrowed for five years. Domino’s said digital innovation remains a core focus. In Australia, close to 60 per cent of total sales come from online, with more than 50 per cent of those from mobile devices, the group said.
Mr Meij said the group rolled out a new digital platform in Australia and New Zealand during the reporting period, implemented the global online ordering and point-of-sale system in the Netherlands, and started rolling out these systems in France and Belgium. “We are the first quick service restaurant in Australia, and one of the first globally, to use Snapchat for commercial activity, as well as grow on other social media platforms including Twitter and Vine,” he said.
(The Australian)
It expects the shares will be issued in March at market price and will not raise any cash as it represents the company’s contribution towards the commercial arrangements.
The shares will be escrowed for five years. Domino’s said digital innovation remains a core focus. In Australia, close to 60 per cent of total sales come from online, with more than 50 per cent of those from mobile devices, the group said.
Mr Meij said the group rolled out a new digital platform in Australia and New Zealand during the reporting period, implemented the global online ordering and point-of-sale system in the Netherlands, and started rolling out these systems in France and Belgium. “We are the first quick service restaurant in Australia, and one of the first globally, to use Snapchat for commercial activity, as well as grow on other social media platforms including Twitter and Vine,” he said.
(The Australian)
