Domino’s buoyed by record network sales
Domino’s has put aside the week’s controversial start to report its lifted continuing operations half-year profit eight per cent to $50 million after record network sales breached the $1 billion mark during the six months to December 31.
The company has also upgraded its full-year guidance, expecting net profit and underlying earnings to increase by 32.5 per cent in 2016/17.
It will pay a partially franked interim dividend of 48.4 cents a share, up 39.5 per cent from the same period a year earlier.
Across the pizza chain’s seven markets in Australia, New Zealand, Belgium, France, the Netherlands, Japan and Germany, group same store sales grew 9.4 per cent in the half.
The ANZ network delivered 23.9 per cent growth in underlying EBITDA to $55.2 million, with 17.2 per cent growth in revenue to $150.1m.
Domino’s said franchisee profitability remains a key company focus for the company and reported average same store EBITDA has increased 31.7 per cent over the past two financial years.
In its update, Don Meij, group CEO and MD, commented on the ongoing investigation into exploitation of franchisee arrangements and underpayments.
“I would prefer all of our franchisees lived up to our expected standards and I am disappointed some individuals have tried to take advantage of our business and team members,” he said.
Domino’s said over the past three years, it has conducted 456 store spot checks, completed 102 store audits with 42 ongoing and investigated 88 individual complaints, 25 of which are ongoing. They said this process has recovered a total of $4.5 million in unpaid superannuation and wages.
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