Dominos Pizza Enterprises announce a $21.4M 2011 full year profit

Dominos Pizza Enterprises Limited (DMP) has announced a $21.4M 2011 full year Net Profit After Tax, up 20.3% on last year and bringing Domino’s annual growth rate from 2007-2011 to 23.9% (CAGR).

Domino’s CEO and MD Don Meij said full year results and sales growth were the result of successful marketing campaigns for new product rollouts and key operational improvements in the Australian, New Zealand and European markets.

“Our solid performance for the 2011 full year is the result of strong Network Sales of $746.4 million up 7.5% on the last year,” Domino’s CEO, Don Meij said.

“Europe achieved Network Sales growth of 14.9% while the Australia and New Zealand market achieved growth of 11.3% despite rolling over a 53-week prior year.

“We reported strong EBITDA of $39.1 million, up 20.2% on full year 2010 despite higher tax and currency movements throughout the year.

“As a result of continued strong earnings we have a robust balance sheet with a surplus of cash and a positive Net Cash position of +$12.5 million.”

From July 2010 to July 2011, Domino’s opened 53 new pizza franchises, with 28 pizza franchises in Australia and New Zealand.

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 +13.2%, with the growth on our digital business having a dramatic effect on sales, where we have seen in excess of $1 million sales weeks from mobile devices alone,” Mr Meij said.

“Innovative product launches and a commitment to improving the quality of our ingredients saw customer counts follow in the same growth trends as sales.

“In Europe, Same Store Sales continued to gain momentum in the second half of the year up +6.79% to finish the 2011 full year with growth of +5.9%. This was the result of new product launches, value promotions and increased media spend.”

“Looking forward to the 2011/12 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 2011, and to add 60 to 70 new stores to the network,” Meij said.

“We have also lifted our Australia and New Zealand market store growth guidance from 620 stores to 750 stores and our goal is to achieve this over the next six years.”

In Australia and New Zealand Domino’s will invest heavily in its digital platform with the expectation of digital orders providing 60% of the business in the next 2½ years.