Domino's ANZ earnings fall 5.8% to $129m
The chain invested in additional sanitiser and protective equipment.
Domino’s Pizza Enterprises’ earnings for Australia and New Zealand declined 5.8% to $129.4 million for the latest financial year, despite getting a boost in online orders amidst the pandemic.
In a disclosure to the ASX, the pizza chain cited a short-term market closure in New Zealand, and changes in customer behaviour that had an “uneven effect” across stores.
“We decided early to invest to put people first and to ensure our franchisees could trade through this period; we provided financial support to some franchisees and paid for additional sanitiser and protective equipment so there could be no barrier to safety,” Domino’s ANZ CEO Nick Knight said.
“These were the right decisions and we will not hesitate to repeat them throughout this pandemic; we know this both could have a short-term effect on our profits, and is the right thing to do for our people and the long-term success of our business.”
Total network sales for the year to 28 June was up 12.8% to $3.27 billion, matched by a 7.3% rise in earnings before interest, tax, depreciation and amortisation to $303 million. Same-store sales growth across the network was up 5.8%.
Domino’s said it has developed, tested and implemented new methods of operating such as Zero Contact Delivery and Car Park Delivery – in record time frames.
The pizza chain also maintained its medium-term guidance of 3 to 6% same-store sales growth.
