Domino's ANZ reports 3.5% sales growth to $613.2m in H2 2019

The company’s network sales were up 10.6%.

The ANZ segment of Domino’s biggest franchisee has posted a 3.5% sales growth to $613.2 million in H2 2019, backed by “strong” delivery growth.

In their latest disclosure, the ASX-listed Domino’s Pizza Enterprises recorded a network sales increase of 10.6% to $1.58 bn, along with SSS up 4.1% and an EBITDA of $151m.

“[W]ith the return of our $5 value range in mid-December and continued growth in deliveries, sales for the first seven weeks of the half have exceeded expectations and we are working hard to build on this momentum,” ANZ CEO Nick Knight commented.

The ANZ business’ same-store sales (SSS) were up 3%, whilst the estate has an EBITDA of $71.4m.

Group CEO Don Meij also announced it will be operating “a higher number” of corporate stores in Australia.

“This is for the long-term benefit of our business and we are committed to helping internal candidates, with the passion and capability to deliver results, refranchise these stores,” he said.

The company, however, is “cautiously optimistic” that the sales within the period will be at the upper end of their medium-term outlook.

“Ongoing sales growth will determine the pace of refranchising of these stores, and we anticipate it may take 18-24 months to return to a historic level of corporate store ownership,” Knight added.

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