After the recent avalanche of bad news from Australia’s retail sector, it’s good to know that not every company is doing it tough.
Domino’s Pizza has recorded positive store growth for the first four months of the financial year, despite worsening economic conditions.
At the group’s annual general meeting, chief executive Don Meij reported that sales were “ahead of expectations and all markets have recorded positive same-store sales growth”.
But Meij urged caution. “We still have eight months of trading ahead of us, and we are coming up against some strong promotions. Therefore, management remains positive but cautious.”
In August the group predicted net profit growth of 10% to 15% for 2008-09, following a near 30% rise in net profit to $11.8 million for the 2008 financial year.
“While it’s unfortunate that the community is experiencing tough times, there are some underlying benefits for our business. Pizza remains an affordable meal for families given it’s a good value takeaway alternative to eating out,” Meij says.
The company is also planning further expansion, with 40 to 50 new stores expected to open by June 2009 in New Zealand, France, Belgium and the Netherlands. It has a total of 741 stores worldwide.
“The weakening Australian dollar will also aid our earnings results in Europe and New Zealand,” he says.
Domino’s shares rose nine cents to $3.09 at the close of trade following yesterday’s announcement.
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