New pizzas push profits higher
New products and more online sales helped pizza chain Domino's to a 6.6 per cent rise in same store sales in New Zealand and Australia during the year to July.
The Australian-listed master franchisor for the Domino's brand in Australasia, France, Belgium and the Netherlands today reported 25 per cent rise in annual net profit to A$26.9 million ($34.9m), up from A$21.4m in the previous 12 months.
Revenue for the year rose 7.4 per cent to A$264.9m, compared with $246.7m in 2011.
Domino's does not break out the New Zealand net profit or sales figures.
The company has 909 stores in total. Of those 559 are in Australasia, including 84 in New Zealand. It is the largest pizza chain in this country.
Competitor Pizza Hut has 71 stores and reported sales last year of $45.5m.
Domino's chief executive and managing director Don Meij said the results and sales growth were attributable to successful new products and a big increase in sales from the digital space.
"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," he said.
Meij said the company is confident its current momentum will continue and has given guidance for the next financial year in the region of 15 per cent above this year's net profit figure.
It also planned to add up to 80 new stores to its global network and is aiming for its 1000th store by December next year.
The company is also expecting online sales to make up 55-60 per cent of total sales by June next year, with half of those coming from smartphone orders.
- © Fairfax NZ News