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E-commerce

Domino’s claims nearly half of all online retail food sales in Australia

Domino’s Pizza has reported a strong start to the year, with net profits jumping 15.47 per cent and profit from continuing operations growing 8.3 per cent in the six months to January 1.

Network sales climbed 26.8 per cent to $1.17 billion to drive the group’s overall revenue up 21.1 per cent to $539.4 million.

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.

In addition to a new menu and faster delivery times, growth in online ordering played a big part in the group’s strong trade, according to Domino’s chief executive Don Meij.

“Our technology is also driving consumers where we are 44 per cent of all online retail food (sales) in Australia and we are 2.8 per cent of all internet transactions in Australia,” Meij told AAP.

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.

The pizza maker reported its first-half earnings amidst claims that its franchisees are underpaying employees and exploiting foreign workers. Domino’s has been conducting its own investigation into wages for the past three years, but denies it is a systemic issue.

“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,” Meij 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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