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Domino’s grows half-year profit by 75.8%


Domino’s grows half-year profit by 75.8%

New Zealand and Australian owned and operated pizza maker Domino’s Pizza Enterprises Limited (DMP) today announced a $6.1 million half year net profit after tax, up 75.8% on the previous corresponding period.

The profit for the 26 weeks ending 30 December 2007 was generated from total network sales of $287 million, an increase of 14.3% on the first half of 2007. Same store sales for the half year grew 7.6% over the first half of 2007.

During the half-year, Domino’s Pizza added 27 stores bringing the total number of stores in the network to 690. This included 21 stores in Europe and 6 stores in Australia and New Zealand.

Today, Domino’s Pizza Enterprises Limited has a network of 694 stores, including 407 in Australia, 66 in New Zealand, 125 in France, 14 in Belgium and 82 in The Netherlands.

The Company will pay shareholders an interim fully-franked dividend of 4.1 cents per share.

The dividend will be paid on 28 March 2008 with a record date of 3 March 2008.

Actual H107
Actual + / -
Store count 690 619 +11.5%
Total Network Sales $287.0m $251.0m +14.3%
Same Store Sales 7.6% 3.2%
Revenue $116.4m $118.1m -1.5%
EBITDA $13.0m $9.6m +35.5%
NPBT $8.6m $4.7m +80.7%

Net Profit After Tax $6.1m $3.5m +75.8%
EPS 9.6c 5.7c

Domino’s Pizza Enterprises CEO and MD Don Meij said the half-year result reflected the Company’s strong network sales growth and group same store sales.

“The European market increased same store sales by 15.03% while Australia and New Zealand increased by 4.77% above the first half last year. Sales and profits in the European market are also tracking ahead of schedule with an operating profit up 200% on the corresponding period,” Mr Meij said.

“The expansion experienced in the first half of the current financial year was a result of strong organic growth in Europe. We are now the number one pizza delivery brand in France and The Netherlands.

“We have also commenced the roll out of the New Image 2020 stores in all three European markets and a second commissary is now complete in Vertou, France.”

He said today recent sales had been aided by strong promotional success in New Zealand and Australia including pizzas like the 7 Meats pizza.

“The introduction of pizzas like the 7 Meats pizza and 70’s Range and the roll out of The Domino’s EffectTM brand campaign resulted in a positive impact on sales in Australia and New Zealand,” Mr Meij said.

“All markets are also benefiting from technological advances in internet ordering with The Netherlands now averaging 18% of all orders placed online. Australia now has online ordering in 97% of stores and New Zealand has online ordering in 87% of stores.”

He said today the Company expected to open 43 stores in the second half of the financial year.

“Our current target is to develop a network of at least 733 stores by the end of the financial year.”

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.

Domino’s Pizza Enterprises Limited is Australia’s first publicly-listed pizza chain, making its debut on the Australian Stock Exchange in May 2005.


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