Mobile Device Sales Driving Pizza Profits

Media release : February 13, 2013

Mobile Device Sales Driving Pizza Profits

Sales from mobile phones and tablets are contributing to a significant increase in net profit for New Zealand's largest pizza company Domino's, according to its latest financial results.

Domino's CEO Don Meij says the company's commitment to growing its online community, via digital platforms, has seen more than half of all online orders now being placed through mobile devices in the New Zealand and Australian markets.

"With both markets continuing to lead the way in digital and online innovations, the milestones achieved in this area of the business are reflected in the results. We want to build on this success and increase online sales to 80% within the next three years," he says.

Domino's Pizza Enterprises Limited (DMP), New Zealand's most popular pizza maker, today announced a $14.5 million half year Net Profit After Tax, up 15.7% on the corresponding period last year.

Meij says the results reflected the brand's focus on innovative retail launches and further enhancements to a number of core offerings, including desserts and the introduction of Cheesy Crust to the menu, combined with the ongoing commitment to digital innovation.

"Although only new, we are seeing similar traction with the mobile ordering site in France already making up 11% of online sales and we are currently the number one Quick Service Restaurant (QSR) on Facebook in The Netherlands, the leading Australian QSR's by 'Likes' on Facebook and ranked in the Top 5 brands for local fans in Australia.*

"In the ANZ market we also launched our iPad app in September 2012 featuring 'Pizza Chef' giving customers the unique ability to create their own pizza and add it to their order, and we have finally cracked one million combined Facebook fans," says Meij.

Meij says the focus for the ANZ market during the reported period has been centred on quality, service and image.

"We have seen great results from focussing on improving the quality, service and image of our products and stores. This includes our store refurbishment program with 18 stores being refurbished during H1 13 including 16 stores with our new 'Entice' image."

Meij says it had been a busy period with the corporate store count in The Netherlands now totalling 35.

"It has been a time for innovation in The Netherlands with 19 new stores opening during the first half of the year, the rollout of a new, much more sophisticated and efficient POS system, the first co-branded highway store, which is trading above expectations, and the completion of our first carry out only store in France."

Meij said Domino's was eager to maintain its momentum across both markets despite being faced with increases in labour costs and economic and retail environment challenges.

"The first half of the year saw 31 new stores open across the network and, with even more growth planned for the second half, things are showing no signs of slowing down. In fact, we are upgrading our predicted store count to over 80 stores for the full year period.

"In addition to this, we are busy investing back into the brand, particularly in Europe where the focus is on refurbishments and upgrades - we are definitely facing the biggest pipeline in Domino's history."

Meij says product innovation is again expected to make a significant contribution in both markets

"We have an exciting new product launch scheduled in the ANZ market for next month which will see the Domino's brand revolutionise the Australian pizza industry, not to mention other exciting product launches in the pipeline for Europe."

Domino's has a busy year ahead with the scheduled rollout of their popular new store concept into the Europe market, the launch of an iPhone app in France next month and their ongoing commitment to increase online sales to 80% within the next three years.

Today, DMP has a network of 934 stores, including 570 in Australia and New Zealand and 364 across France, Belgium and The Netherlands.

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ENDS

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