Domino's eyes greater expansion in FY22; Japan sales 'negative' on one-year basis
The company’s first quarter network sales rose 8% or 4.3% on a same store sales basis.
ASX-listed Domino’s Pizza Enterprises group CEO and managing director Don Meij said the company was “active in pursuing additional markets” and setting its sights on the 2022 financial year to be the “largest expansion of our store footprint in our company history.”
“While there are short-term challenges ahead of us as we transition to ‘living with COVID-19’, this is not new: our experienced teams have successfully navigated multiple challenges since the start of this pandemic,” he said.
“Our network is already more than 7% larger this Financial Year (and 15% larger than this time last year), through continued organic new store openings and acquisitions, including the opening of 66 new stores and the addition of 156 stores with the acquisition of Taiwan.”
In the 2022 financial year, the company’s first quarter network sales rose 8% or 4.3% on a same store sales basis over the prior corresponding period.
“While this represents an improvement compared to the Full Year trading update, sales growth has been uneven across regions, with operations affected by local conditions including lockdowns and ongoing changes in customer behaviour, making short-term forecasts challenging,” the company said, also warning about currency and inflationary headwinds.
Sales of its Japanese operations are “negative” on a one-year basis, with the company adding it is unable to forecast whether it will be better by the 2022 financial year.
“Because of current negative sales, and the material contribution of the Christmas trading period, management is unable to forecast whether FY22 Japan sales (and accordingly earnings) would surpass FY21,” the company said in a trading update released on November 3.
Domino’s said its Japanese market delivered strong growth during FY22 prior to the government lifting its national State of Emergency at the end of September and noted that they are positive on a two-year basis.