Domino’s announces strong NPAT growth of 16%

Domino’s announces strong NPAT growth of 16%

Australia’s largest pizza maker Domino’s Pizza Enterprises Limited (DMP) today announced a $17.8 million full year Net Profit After Tax, up 16% on the previous year.

This takes Domino’s Pizza’s NPAT annual growth rate over the last three financial years to an impressive 25.1% (CAGR).

The year’s profit was generated from Total Network Sales of $694.3 million. Same Store Sales for the full year grew +2.8% over the corresponding period last year.

During the 12 months to 4 July 2010, Domino’s Pizza added 54 stores to its network, comprised of 41 stores in Europe and 13 stores in Australia and New Zealand. The year-end store count was 823, allowing for seven Pinky’s stores which were removed from the network.

As of 18 August 2010 Domino’s Pizza had a network of 825 stores, including 443 in Australia, 79 in New Zealand, 175 in France, 28 in Belgium and 100 in The Netherlands. Domino’s CEO and MD Don Meij said the robust full year results were reflected in the Company’s strong Network Sales growth and EBITDA.

“Our solid performance for the 2010 full year is the result of strong Network Sales growth up 5.6% in Australia and New Zealand while Europe experienced solid growth up 14.3% on the corresponding period last year,” Mr Meij said.

“We also reported strong EBITDA of $32.5 million, up 15.1% on full year 2009 despite challenging European trading conditions and FX impacts during the year.”

As a result, the Company will pay shareholders a final fully-franked dividend of 11.8 cents per share, which includes a special one-off dividend of 3.4 cents per share, bringing the full year dividend to 17.8 cents. The final dividend will be paid on 15 September 2010 with a record date of 30 August 2010.

Full Year 10 Actual Full Year 09 Actual + / - Store count 823 776

Total Network Sales $694.3m $676.4m +2.7%

Same Store Sales +2.8% +4.6%

Revenue $236.1m $239.0m -1.2%

EBITDA $32.5m $28.3m +15.1%

NPBT $23.7m $20.3m +17.1%

Net Profit After Tax $17.8m $15.4m +16.0% EPS 26.2c 22.6c +15.9% Dividend (fully-franked) 17.8 12.4c 43.5% Mr Meij said Domino’s group Same Store Sales were aided by strong promotions in both the Australian/New Zealand and European markets.

“In Australia and New Zealand we recorded strong Same Store Sales (SSS) of +3.23%, a good result given we were rolling over a strong year in 2009 following the new menu launch,” Mr Meij said.

“In Australia our continued focus on the online side of our business also contributed to these results. Our online ordering, which includes orders placed through our highly-successful iPhone app, is advancing and we are seeing great growth.” “In Europe, Same Store Sales recovered strongly in the second half of the year up +3.68% to finish the 2010 full year with growth of +1.75%, despite the impact of unusual weather conditions and softer trading conditions in The Netherlands.

“We also opened our 300th European store during the year, continuing our successful European expansion, with plans to grow to 1,000 stores over the next decade.” Looking forward

“Looking forward to the 2010/11 Financial Year, Domino’s is confident of continuing the current momentum we are experiencing and we expect to deliver a NPAT between 10 -15% above 2010, and to add 50 to 60 new stores to the network,” Mr Meij said.

Mr Meij also highlighted the return of Andrew Rennie to Australia to take the newly-created position of Chief Operating Officer (COO).

“We are excited to have Andrew Rennie back in Australia in the new role of COO. Andrew’s role as COO will be to oversee all operations including corporate, franchise and marketing,” Mr Meij said.

His position as CEO of France will be taken by Melanie Gigon who has been the Marketing Director in France for 10 years.

“Melanie Gigon’s appointment as the new CEO in France is a key step forward for our growth in the country. She has built strong relationships with franchisees over the last 10 years and has been a driving force behind key marketing initiatives which have helped Domino’s become the most recognised takeaway pizza brand in the country,” Mr Meij said.

Domino’s Pizza Enterprises Limited is Australia’s only publicly-listed pizza company and is the master franchisor for the Domino’s Pizza brand in Australia, New Zealand, France, Belgium and The Netherlands.

ENDS

© Scoop Media