Domino’s exits Swedish market to focus on core UK and Ireland business
Domino’s has disposed of its Swedish business as it progresses with its strategy to exit international markets in order to focus on its core UK and Ireland operations.
The pizza chain announced this morning it has sold its entire shareholding in PPS Foods – also known as Domino’s Sweden, to minority shareholder Eyja fjárfestingafélag.
Domino’s will pay €2m to the purchaser, which is owned by Domino’s Sweden director Birgir Bieltvedt.
The transaction is part of the group’s planned exit from all of its directly operated international markets, to allow for further development on its UK and Ireland businesses, as announced in October 2019.
Last year, it exited the Norwegian market.
Analysts at Peel Hunt said last year that the international disposal programme could help management “release the real potential of the core business”.
The analysts said: “The implementation of the disposal strategy will simplify the group and increase investor focus on the core UK business, which has delivered a resilient performance through a period of turbulence.”
Domino’s Sweden’s underlying operating loss for the year ended 31 December 2019 was £4.0m and the value of its gross assets were £9.8m as at 30 June 2020.
Following completion, which is expected in May, funding previously allocated to Domino’s Sweden will be retained within the Domino’s Pizza Group.