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Domino's: NPAT growth of 25.7% and EPS growth of 24.3%

14 August 2012

Domino's delivers strong NPAT growth of 25.7% and EPS growth of 24.3%

Domino's Pizza Enterprises Limited (DMP) today announced a $26.9million 2012 full year Net Profit After Tax, up 25.7% on the previous year.

The year's profit was generated from Total Network Sales of $805.3 million. Strong Same Store Sales (SSS) for the full year grew 6.5%, on top of the 11% growth achieved in the corresponding period last year.

New Zealand and Australia achieved SSS growth of 6.6% while Europe recorded growth of 6.3% above last year, rolling over 13.2% and 5.9% respectively.

As a result of strong earnings, the Company will pay shareholders a final fully-franked dividend of 14.1 cents per share, in addition to the interim dividend of 13 cents per share. This brings the full year dividend to 27.1 cents reflecting a 70.2% payout ratio, which represents an increase of 23.7% on the previous year.

The final dividend will be paid on 14 September 2012 with a record date of 28 August 2012.

During the 12 months to 1 July 2012, Domino's Pizza added 62 stores to its network, comprised of 24 stores in Australia and New Zealand and 38 stores in Europe.

The year-end store count was 908, allowing for the three remaining Pizza Company stores to be removed from the network in Belgium, while in Australia we exited the MCG and Skilled Stadiums and closed the remaining five Pinky's stores.

Domino's CEO and MD Don Meij said the solid full year results and sales growth were attributed to successful new product innovations across both markets and a significant increase in sales coming from Domino's digital platforms.

"Our solid performance for the 2012 full year is the result of rolling out new products including our improved Classic Crust in Australia and New Zealand while over in Europe we introduced new flavours during the year including curry, pepper sauce and coconut cream.

"As a group, Domino's achieved strong Network Sales of $805.3 million up 7.9% on the last year," Mr Meij said.

"Europe achieved Network Sales growth of 12.2% while the New Zealand and Australia market achieved growth of 9.1%.

"We reported strong EBITDA of $48.1 million, up 23.1% on full year 2011 with Europe recording EBITDA growth of 68.1%.

"The year's strong earnings ensured our balance sheet remained robust with a positive Net Cash position of +$26.3 million."

Mr Meij said both markets significantly expanded their digital platforms and social media presence which has helped attract new customers and increased interaction and loyalty.

"During the year we launched our online catering ordering system in New Zealand and Australia to facilitate easier ordering for large groups. In addition, we were the first Quick Service Restaurant to launch Facebook ordering - offering our 900,000+ New Zealand and Australia Facebook fans the opportunity to order without leaving the social media environment," Mr Meij said.

"In Europe, sales through our digital platforms continue to grow. Social media is gaining momentum with more than 263,000 fans in France; While The Netherlands has launched a new Facebook page and has started running competitions to increase fan numbers.

"I'm thrilled to say our system sales in The Netherlands broke the million Euro milestone during the year, achieving a system record week of €1,086,000."

Looking forward

"Looking forward to the 2012/13 Financial Year, Domino's is confident of continuing the current momentum we are experiencing and we expect to deliver a NPAT in the region of 15% above 2012, and to add 70 to 80 new stores to the network," Mr Meij said.

"We expect to have a record number of organic new store openings, particularly in our three European countries, and hope to open our 1,000th group store by December 2013."

"Our pipeline of store development in Europe is the strongest it's been since we entered the market in 2005."

Domino's new tile logo will be rolled out across the Group as the Company looks to refresh store designs and signify the brand's transformation.

In Australia Domino's is expecting online sales to make up 55-60% of total sales by June 2013, with 50% of this to be made up of mobile orders.

Domino's Pizza employs more than 21,000 team members across, New Zealand, Australia, France, Belgium and The Netherlands and makes more than 60 million pizzas a year.


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