FRANCHISING | Staff Reporter, Australia

Online sales boost Domino's half-year profits

Store openings have also accelerated despite challenges.

ASX-listed Domino’s Pizza Enterprises said global food sales for the half-year increased by $260.8 million to $1.84 billion and delivered half year EBITDA of $218.7 million.

Online sales also played a key role, up 25.4% to $1.42 billion.

Group CEO and managing director Don Meij said the company’s performance largely reflected “experienced management and franchisees executing on a longterm strategy” rather than one-off costs or short-term sales attributable to COVID-19.

“The performance this half predominantly reflects the benefits from investing in, and strengthening, our franchisee base and expanding our store footprint on a global scale, and the efforts of tens of thousands of our people executing against our strategy,” he said.

Domino’s opened 131 organic new stores, 68 of which came from Japan. Meij said the company intends to “significantly outperform” this result in the second half.

Meij added that COVID-19 conditions, community responses and accordingly sales remained mixed across the Company’s portfolio of nine countries.

“Network sales growth in all countries was positive, with particularly strong growth in Japan and Germany where local teams met the twin challenges of delivering exceptional service levels and serving record customer numbers,” he said.

“Our view is COVID-19 has brought forward long-term demand for delivered food, ordered online, in all markets. At the same time, carry-out orders remain challenged in most markets, as specific customer segments (including CBD office lunches) have changed their ordering behaviour.”

In ANZ, Domino’s noted experienced franchisees grew sales by 5.7% $648 million, and improved margins saw EBIT rise 9.8% to $63.7 million.

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