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UK's Domino's no longer expects international business to break even in 2019

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Britain's biggest pizza delivery firm Domino's Pizza Group Plc said on Tuesday it no longer expects to break even in its international business this year, hit by persistently weak sales across Europe.

[BENGALURU] Britain's biggest pizza delivery firm Domino's Pizza Group Plc said on Tuesday it no longer expects to break even in its international business this year, hit by persistently weak sales across Europe.

International sales fell 2 per cent to 25.1 million pounds (S$44.83 million) for the quarter ended March 31, Domino's said, adding it was tightening costs and expenditure for its international businesses which include Norway, Sweden and Switzerland.

Domino's 2018 profit was dented by a slowdown in overseas markets, as fourth-quarter sales in some countries were hurt by unseasonably warm and dry weather.

"Internationally, performance remains disappointing and trading visibility is limited ... we are therefore further tightening our focus on international costs and capital deployment," Chief Executive Officer David Wild said.

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The company has been focusing on its online and overseas businesses, but has struggled to control in-store costs, especially in Norway where it is converting the Dolly Dimple stores acquired in 2017.

Domino's has also been negotiating with international franchisees on terms, as labour cost pressures add to rising inflation and sales growth remain subdued.

The company reported a 4.5 per cent rise in group sales to 324.4 million pounds  for the first quarter, on strong demand for its pizza across UK and Republic of Ireland, which account for 90 per cent of its business.

 

REUTERS