Domino’s grows Network Sales by 14.5% and increases dividend

Australian pizza maker Domino’s Pizza Enterprises Limited (DMP) today announced a strong half year Network Sales growth of 14.5% above the corresponding period last year.

Robust Network Sales were the result of solid Group Same Store Sales (SSS) growth, which increased 4.2% above the first half of 2008. Australia and New Zealand recorded SSS growth of 2.2% while Europe recorded an increase of 8.8% in SSS on the first half of 2008.

Domino’s core earnings were also up 14.8% on the corresponding period last year.

Domino’s Pizza Enterprises CEO and MD Don Meij said the Company’s Net Profit After Tax (NPAT) was up 2.8% to $6.3 million. He also said that the Company will pay shareholders an interim fully-franked dividend of 4.4 cents per share, up 7% on the dividend paid in the corresponding period last year.

“We have recorded solid performance for the first half of the 2009 and, as a result, Domino’s Pizza is on track to meet market guidance of an increase of 10%-15% in NPAT on full-year 2008,” Mr Meij said.

“Europe has reported strong results including EBITDA up 35.7% on the same period last year.

The interim dividend will be paid on 20 March 2009 with a record date of 2 March 2009. The Dividend Reinvestment Plan remains active but, as a benefit of DMP being in a strong capital position, the interim dividend will not be underwritten.

During the half-year, DMP added 15 stores, including 2 stadium stores, bringing the total number of stores in the network to 756. This included 11 stores in Europe and 4 stores in Australia and New Zealand.

The fast food franchise company’s organic store growth remains in line with expectations of adding 40 stores by full year 2009.

Looking forward, Don Meij said DMP was experiencing strong momentum in sales with SSS growth of 5.2% in January 2009.

“Despite the economic downturn, customers are still appearing to be supportive of the fast food category,” Mr Meij said.

“With the new menu launched in Australia on Monday, including three fresh premium pastas, three additional pizzas and a dessert, we believe we can continue to offer customers greater choices and value for money.”

Online ordering continues to be a significant part of the DMP’s innovative marketing approach, recording more than 19% of sales placed online in Australia and 24% in The Netherlands.

“Online ordering continues to impress us, that’s why we’ve launched new websites in Australia and New Zealand. We will also see an increase in online sales across all countries going forward following the launch of France’s estore.

Today, DMP has a network of 756 stores, including 513 in Australia and New Zealand and 243 across France, Belgium and The Netherlands.

DMP 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.

DMP made its debut on the Australian Securities Exchange in May 2005.