Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Corporate Update (June 2023)
11 slides from Domino's Pizza Enterprises's corporate update, Jun 13, 2023
Slide 1: Asia Pacific Europe, 13 June 2023
ASIA PACIFIC EUROPE 13 JUNE 2023
Slide 2: Cost initiatives summary and immediate outcomes
• Domino’s has taken steps to deliver material, near-term, cost savings, improving efficiency and building a stronger foundation for future growth. Immediate outcomes include: 1. Closure of Domino’s Denmark 2. Optimising the corporate store network, through accelerated franchising and closure of ~65
Slide 3: Non-recurring costs and annualised network savings
• Non-recurring costs are expected to be in the region of $80-93m • Initiatives will provide annualised savings of $53-59m (1) Annualised Initiative Non-recurring costs(2) Network savings Danish Market Closure Costs $20-26m $12m Optimising the corporate store network(3) $50-55m $16-20m Planned commi
Slide 4: Cost Initiatives
Slide 5: Danish market closure
• Despite best efforts, performance in this small market has not materially improved • Danish market was acquired for €2.5m, in a receivership process, from the former owners, in 2019 • Exiting Denmark is expected to result in $20-26m of closure costs in FY23 • Closure will deliver $12m in immediate
Slide 6: Optimising the corporate store network
• Corporate store network to reduce by ~15-20%, through the closure of underperforming stores and accelerating franchising • Corporate store closures: ~65-70 stores (<2% of the Global network) have been identified as underperforming and are not expected to reach sustainable levels of sales or profit
Slide 7: Commissary closures in SE Asia and legacy IT assets
• Commissaries to close in Taiwan, Malaysia, Singapore, and Cambodia, improving product quality, supply chain resilience and reducing unit costs to stores • With all geographies successfully integrating onto the new generation OLO during the year, the useful life of legacy assets has been shortened,
Slide 8: Streamlining operations
• Domino’s is reviewing business units to identify efficiencies, including realignment of business structures, simplification of systems and removal of operational areas that are not core to our future growth • Immediate changes include the closure of our Construction and Supply subsidiary in Austra
Slide 9: Group Trading Update
Slide 10: Same store sales and organic store openings
• Same Store Sales: improved during the Second Half • Despite positive trends in Q4, FY23 Same Store Sales remain below the medium-term outlook of 3-6% annual growth • Group(1): H2 +0.2% | Q4 +2.0% • Group, excluding Taiwan(1): H2 +1.0% | Q4 +3.0% • Organic store openings: • Organic new store openin
Slide 11: We are the dominant sustainable delivery QSR
WE ARE THE DOMINANT SUSTAINABLE DELIVERY QSR MARKET BY 2 0 3 0
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