Domino’s Pizza Enterprises swung to a net loss in the first quarter amid challenges in Japan and France, where it committed to improve performance moving forward.
The pizza chain posted an attributable net loss of $22.2 million as revenue fell 6.4 per cent to $1.17 billion.
Australia and New Zealand revenue declined 5.2 per cent to $395.4 million, while Europe revenue slid 6.9 per cent to $368 million. Asia revenue decreased 7.1 per cent to $402 million.
The company noted its new ‘Honour the Craving’ Benelux branding campaign generated positive results and that its Germany business showed improvement after cycling the Doner kebab campaign in the last fiscal year.
The group’s earnings before interest and taxes (EBIT) dipped 6.7 per cent to $100.6 million.
“Our recent decision to close 205 loss-making stores, including 172 in Japan, should demonstrate we will take the steps we need to provide the venture capital to reinvest in sustainable, long-term growth,” said Mark van Dyck, Domino’s Pizza Enterprises CEO and MD.
“These results demonstrate early progress, however we have more to do to restore value for our shareholders, franchise partners, and customers – as we do so, we will be prioritising profitable same-store sales growth similar to other retailers, with selective store additions.”
This article was first published on sibling website Inside Retail.
