News:
PIZZA maker Domino’s Pizza Australia New Zealand Ltd believes a push into the European market is the key to growing future profits.
Domino’s today announced their final results for 2005-06, a 104 per cent increase in annual net profit to $13.04 million.In July, Domino’s Australia acquired the existing 155 franchise stores in Belgium, France, Netherlands and Monaco, adding to their 440 stores in Australia and New Zealand.
Company chief executive Don Meij said Domino’s Australia’s European expansion would be a critical part of the business going forward.
“Now with the acquisition of Europe, you can see we’re being quite bullish and quite confident that we’ll be able to deliver some strong results,” Mr Meij said.
“We’ll be able to grow in the somewhat distant future to about 1,000 stores in Europe, so we’ve still got lots and lots of growth ahead of us which we think we can turn into profit.”
However, Mr Meij said he didn’t expect the European operations to contribute profits until 2008 and that the market had more seasonable trends than Australia.
“Our investment in Europe will dilute our profits for this year, but Europe will contribute from 2008, he said.”
“Unlike Australia, Europe does show some seasonality…our worst months are their summer months, where people leave the north, where most of our stores are, and go to the south.
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