Domino’s kicks off FY12 with 10.3% same store sales growth
Posted by Fleur Revell
Domino’s Pizza Enterprises Ltd has started the 2012 financial year in impressive style, buoyed on by Same Store Sales growth of 11.1% in New Zealand and Australia.
Domino’s Pizza Enterprises Ltd (“Domino’s”) announced today at its Annual General Meeting robust Same Store Sales for the first four months of Financial Year 2012 with 10.3% growth on top of the 7.83% growth achieved in the same period last year.
This has been achieved with Same Store Sales growth of 11.1% in New Zealand and Australia and 8.3% in Europe, despite rolling over 9.35% and 4.21% respectively.
Domino’s Chief Executive Officer Don Meij said that while Same Store Sales had been impressive for the first four months of the 2012 Financial Year, the Company is cautious about its ability to maintain this trend for the Full Year.
“We have experienced strong Same Store Sales growth during the first four months of the 2012 Financial Year, particularly noteworthy given the current economic environment being experienced by retail generally,” Mr Meij said.
“However, due to solid results from promotions from October to June last year we have some very strong numbers to roll over for the remainder of this Financial Year.
“Given these considerations we are expecting to achieve the upper end of our 2012 Full Year Guidance of 3-5% Same Store Sales growth, and reaffirming NPAT growth in the region of 15%.”
Mr Meij highlighted strong organic store opening for the first half of 2012 as Domino’s continues towards its forecast of opening 60 – 70 new stores during 2011/12.
“Domino’s has already opened 12 new stores this year and we expect to open 35 – 40 during the first half of 2011/12,” Mr Meij said.
“These openings include 1 in New Zealand, 6 in Australia, 2 in France and 3 in The Netherlands, which are all new image stores that feature seating for customers and an open view to the store’s pizza making area.”
Domino’s will continue its focus on product development and technology initiatives as key drivers for future growth across both markets.
“To ensure we continue momentum across the business we are working on new product development ideas while also driving more technology initiatives to ensure we can continue to give our customer greater choice and portability,” Mr Meij said.
“We have recently launched Free Range Chicken on our pizzas in Australia and we are committed to making further improvements to reduce the saturated fat and sodium content in our ingredients without compromising on taste.
“With our New Zealand and Australian market leading the way in technology, The Netherlands has taken key learnings from this and has recently launched mobile ordering while France has started mobile advertising.”
In addition to technology and operational performance, Domino’s Pizza has also started to introduce sustainability initiatives designed to help reduce its carbon footprint.
“As well as offering great product, service and image, we are also committed to doing what we can for the environment. Our new sustainability initiatives mean we can make a difference both now and into the future,” Mr Meij said.
“We have recently launched an Electric Scooter Program and over the next three years we will replace our current models with new environmentally-friendly electric scooters. These specially modified delivery scooters will deliver cost savings to our business while also reducing carbon emissions.
“In store, we have made notable design improvements to reduce our gas and electricity consumption; and reduce waste and water usage.”
Domino’s Pizza Enterprises Limited is the master franchisor for the Domino’s Pizza brand in New Zealand, Australia, France, Belgium and The Netherlands.
Domino’s and its franchisees have 878 stores across five countries, employing more than 21,000 part-time and full-time staff and making more than 60 million pizzas each year.